The group, which also operates the Currys and PC World chains, reported a 2% fall in group sales to £8.2bn for the year to 30 April 2011.

UK sales fell 3% to £3.8bn

It also posted a 6% fall in pre-tax profit down to £85.3m from £90.9 million last year.

John Browett, CEO says: “Maintaining sales, margin and profits is a good performance in such challenging conditions. We are consistently outperforming our markets and gaining share because our Renewal and Transformation Plan continues to deliver a better and more compelling experience for customers.

Despite the slide in sales and profit, the group says its store refit programme is progressing well and Knowhow, its recently introduced customer services proposition, is helping to differentiate its offer from the competition.

Dixons also revealed that its finance director Nicholas Cadbury has stepped down to join electricals distribution firm Premier Farnell in the same role.

The electricals market is currently struggling with Best Buy, Comet and Argos all reporting sliding performance.

Yesterday, Comet’s owner Kesa electricals reported a €10.3m (£39.1m) loss for the year to 30 April, while revenue fell 3% to €1.8bn (£1.6bn) and the UK chain.