* Says opportunities to pick up distressed assets
* Gives guidance for FY operating profit of 102-106 mln eur
* Interim dividend up 10 percent to 3.3 euro cents
* Operating profit up 29 percent to 63.4 million euros
* Shares up 1.5 percent
(Adds CEO, strategy director, analyst comment, shares)
DUBLIN, Oct 12 (Reuters) - Irish drinks firm C&C Group is targeting more acquisitions, it said on Tuesday, after reporting an increase in first-half operating profit and the first rise in UK sales of Magners cider since 2007.
C&C, which acquired Gaymers cider and Scotland's most popular lager, Tennent's, in separate deals over the last 14 months, said the strength of its balance sheet would enable it to pursue further deals.
The group had net cash of 20.8 million euros ($29 million) at the end of August having sold its spirits & liqueurs business in April for 300 million euros.
"We're very well positioned to capitalise on any opportunities that present themselves over the next 12 to 18 months," Strategy Director Kenny Neison told reporters on a conference call on Tuesday.
"There are likely to be further opportunities given the turbulence of the market. It may well be there are distressed asset sales to come out in the next couple of years."
However, Chief Executive John Dunsmore cautioned the group's priority was integrating the businesses recently purchased.
"We've got a huge digestion challenge in the next 12 months because we've done so much corporate activity in the last 18 months, so I wouldn't signal anything will happen in the next two or three months," he said.
C&C reported a 29 percent increase in operating profit from continuing operations to 63.4 million euros, ahead of the 60.3 million forecast by Irish stockbroker Davy, which described the numbers as "solid".
C&C said it was confident of meeting market expectations for a full-year operating profit of between 102 and 106 million euros.
Its shares were up 1.5 percent to 3.11 euros at 0930 GMT, valuing the business at 1.04 billion euros.
"C&C is now debt free and in a position to explore opportunities to strengthen its position in Britain or lay the foundations for future internationalisation of the cider business," said Davy analyst Brian Fagan.
The group said it remained cautious on the outlook with economic conditions in its core markets of Ireland and the UK remaining unpredictable.
"I think it's going to be pretty tough for the consumer in the UK ... and we're waiting to see what happens with public sector cuts in the next few days," said Dunsmore.
Magners' total sales volumes grew by 1.6 percent on the previous year, including 0.7 percent in Britain, as the group reaped the benefits of a successful "Method in the Magners" TV advertising campaign.
In Ireland, where C&C sells cider under the Bulmers brand, sales were down 3.4 percent.
C&C is paying an interim dividend of 3.3 euro cents per share, up 10 percent. ($1=.7214 Euro)
(Reporting by Matt Scuffham; Editing by Carmel Crimmins and David Hulmes)