DIXONS and Currys owner DSG International celebrated a digital Christmas yesterday after sales surged on the back of demand for high-tech gifts.

Sales at Dixons rose by eight per cent and at Currys by three per cent as both chains enjoyed a respite from difficult trading conditions.

Despite the encouraging performance, chief executive John Clare said he remained wary about prospects.

DSG was also lifted by a three per cent improvement in sales at PC World, although The Link mobile phone business continued to struggle.

DSG also announced results for the six months to November 12 yesterday, with sales up three per cent at £3.51bn and underlying profits down to £97.5m from £121.8m a year earlier.