UPDATE 2-UK's eaga says revenue, dividend up 10 percent

* Adjusted, diluted EPS up 15 pct, EBITA up 13 percent

* Will roll over 35 mln of bank facilities due in Dec.

* Says had 15 million of net cash, no debt

* Shares rise rise 2.3 percent

(Adds company, analyst comment, share price)

By Catherine Bosley

LONDON, Jan 29 (Reuters) - British environmental services company eaga Plc EAGA.L said it is upping its interim dividend by 10 percent after revenue rose 10 percent in the six months to Nov. 30, sending its shares up 2.3 percent.

Revenue spiked to 339.4 million pounds ($478.9 million), while the dividend rose to 1.1 pence a share, eaga said on Thursday in a trading statement.

"The financial year continues to progress in line with our expectations, and we have confidence in the outlook for the remainder of the financial year," eaga said in the statement.

Michael Parkinson, head of research at London brokerage Brewin Dolphin, said: "The results look very, very good."

Eaga, which helps households become more energy efficient, said adjusted diluted earnings per share rose 15 percent to 6.12 pence, while earnings before interest, tax and amortisation (EBITA) rose 13 percent to 21.4 million pounds.

Parkinson said falling gas prices and lower levels of disposable income due to Britain's worsening economy were unlikely to cause eaga's business to suffer.

"I don't see that as a risk," he said. "With unemployment going up, more people will fall into fuel poverty even if gas prices fall."

Eaga has contracts with the British government for two projects, the Warm Front and CERT, which help households reduce carbon emissions.

Warm Front provides insulation and other free services to households in fuel poverty, which are those spending more than a tenth of their income on gas.

NO DEBT

Eaga's Commercial Director, Drew Johnson, told Reuters in a telephone interview he saw good prospects for growth. "We're seeing demand at record levels."

Both CERT and Warm Front were experiencing solid demand, eaga said, with CERT receiving a 20 percent investment increase of 560 million pounds.

Finance Director Ian McLeod said a contract with the BBC to help people switch to digital television from analogue would be expanding in Wales and other areas in 2009.

McLeod said the company had 15 million of net cash and no borrowings at Nov. 30. He said there was a revolving credit facility for 35 million pounds due in December, and that eaga was in talks to rollover that debt.

He said eaga was "pretty confident" of securing banking facilities of about 70 million pounds at a rate of 200 basis points over LIBOR. "We expect to be in line with current market pricing," McLeod said.

Brewin Dolphin upped its 2009 EBITA forecasts for eaga by 1 million pounds to 47 million pounds, but left its 2010 forecast unchanged at 51.7 million pounds, rating the stock as a 'buy'.

"If the government is looking for better value for money as it has to in this economic climate that will create opportunities for outsourcing businesses, of which eaga is one," Parkinson said.

By 0941 GMT, the company's shares were up 2.3 percent at 146.25 pence, off the highs above 190 pence seen in late February 2008. (Editing by Andrew Macdonald)