* Pretax rises to 42.5 mln stg on up rev 19 pct at 660 mln
* Order book up 8 percent at 2.8 billion pounds
* FY dividend up 18 percent to 3.16 pence
* Says well positioned in defensive markets
* Shares up 1.3 percent
(Adds CEO comment, analyst, share reaction)
By Farah Master
LONDON, Oct 13 (Reuters) -British support services group Connaught Plc met expectations with a 39 percent increase in full-year profit and said on Tuesday its growing order book would provide good future earnings growth. Connaught, which provides property services to owners and occupiers of buildings, posted a pretax profit of 42.5 million pounds ($67 million) for the year to the end of August, on revenue 19 percent higher at 660 million.
The company said it would pay a final dividend of 2.07 pence per share, giving a total for the year of 3.16p, up 18 percent on the year before.
Connaught said it was benefitting from the economic climate and a drive among companies to cut costs.
"We provide services which are largely non-discretionary and essential, which have protected us from fluctuations in the economic cycle and government spending," Chief Executive Mark Davies told Reuters. "It is not sexy stuff we do but it is essential."
The group's order book rose 8 percent to 2.8 billion pounds.
Shares in Connaught were up 1.3 percent at 429.55 pence by 0745 GMT, valuing the company at around 570 million pounds, having initially spiked up to their highest in some 16 months.
The shares have lagged the FTSE All Share support services index by around 4 percent in the last year.
"Connaught's full-year results are in line with our expectations, with double-digit organic growth and margin improvement in both divisions," said David Brockton, analyst at Arbuthnot research, who retained his "buy" rating on the stock.
Connaught said sales in its social housing division rose 18 percent to 528 million and expects the unit to benefit from a growing British population. Sales at its compliance unit were 25 percent higher to 132 million after it said its outsourced service was seen by clients as a good way to cut costs.
Connaught's environmental services also benefited from clients looking for cost reductions, while its acquisition of Fountains for 13.3 million in September is forecast to produce cost synergies in 2010. (Editing by David Holmes) ($1 = 0.6333 pound)