(Corrects to show in second bullet point that H1 sales up 0.4 percent and not down)
* H1 pretax profit 13 million pounds vs 45.1 million
* H1 sales 2.18 bln pounds, up 0.4 percent
* Interim div 1.75 pence vs 3.5 pence
* Sees "very difficult" peak trading
* Shares down 11 percent
(Adds detail)
LONDON, Dec 16 (Reuters) - Europe's third-largest electrical goods retailer Kesa Electricals Plc posted a 71 percent fall in first-half retail profit, halved its dividend and said trading was set to remain tough, sending its shares 11 percent lower.
Chief Executive Jean-Noel Labroue forecast "a very difficult peak trading period."
"We do not expect consumer confidence to improve for the rest of the financial year," he said.
The group, which owns French market leader Darty and Britain's second-biggest electricals retailer Comet, said it would maintain a strict focus on cash management, stock and capital expenditure, along with margin management and cost control.
Kesa said retail profit for the six months to Oct. 31 was 13.0 million pounds.
This compares with analyst forecasts of about 13 million pounds to 15 million pounds and 45.1 million pounds in the same period last year.
Group revenue increased 0.4 percent to 2.18 billion pounds but was down 5.5 percent on a like-for-like basis, which strips out the impact of new space.
Labroue told reporters there had been no change in sales patterns in the third quarter compared to the second.
Comet, hit by particularly weak demand for white goods such as washing machines and refrigerators, made a first-half loss of 8.1 million pounds, while Spanish business Menaje del Hogar made a loss of 8.7 million pounds.
Many European retailers are struggling as shoppers cut back on spending, particularly on expensive items like laptops and TVs, amid rising unemployment and falling property values.
Prior to Tuesday's update, shares in Kesa had lost 57 percent of their value over the last year, underperforming the DJ Stoxx European retail index by 39 percent.
At 0813 GMT the stock was down 11 pence at 91.5 pence, valuing the business at 481 million pounds.
Bigger rival DSG International, which trades as Currys and PC World in Britain, UniEuro in Italy and Elkjop in Nordic countries, last month reported a first-half loss and axed its dividend.
Kesa's interim payout was cut to 1.75 pence from 3.50 pence.
Labroue said it was too early to say if the final dividend would be cut by a similar magnitude.
Labroue retires as Kesa chief executive on Jan. 5. He will be succeeded by Thierry Falque-Pierrotin, the former CEO of PPR Group's Redcats home shopping business. (Reporting by James Davey; Editing by Chris Wickham)