UPDATE 1-BSS 16-week revenue falls, says confident of FY

* Says 16-week revenue falls 5.6 pct to 369.5 mln stg

* Sees 2009-10 as a year of weaker demand

* To pursue new growth opportunities

* Says financial position strong (Adds details)

July 23 (Reuters) - BSS Group Plc BTSM.L said revenue in the first 16 weeks fell 5.6 percent, but said it was pursuing new growth opportunities to offset the fall in core revenue and was confident of outperforming the market in the full year.

The British plumbing and heating company said all of its businesses were continuing to grow market share, but the later cycle industrial and specialist divisions were being drawn into the downturn.

However, its domestic division is holding up better against last year, the company said. "The group continues to anticipate that financial year 2009-10 will be a year of weaker demand with tough trading conditions in the industrial and specialist sectors," the company said in a statement ahead of its annual general meeting.

Revenue for the 16 weeks ended July 17 was 369.5 million pounds ($609 million), while like-for-like costs during the period were 7.2 percent below last year.

The company said it also planned to cut costs further to save 5 million pounds more annually.

BSS said its financial position remained strong and it expected being cash positive in the current year ending March 31, 2010.

BSS shares closed at 260 pence on Wednesday on the London Stock Exchange. ($1=.6067 Pound) (Reporting by Kumar Alagappan in Bangalore; Editing by Gopakumar Warrier)