UPDATE 1-Phoenix IT profit rises; raises dividend

* Says will continue to look at acquisitions

* FY adj pretax profit 29.5 mln stg vs 28.3 mln last yr

* Shares up 1.7 percent (Adds details)

June 7 (Reuters) - Phoenix IT Group Plc (PHIT.L) posted a 4.2 percent rise in full-year underlying pretax profit on higher order book and said it would continue to pursue acquisitions.

The IT services company said it proposed a final dividend of 4.3 pence, taking the total dividend for the year to 6.45 pence, up 2.4 percent form last year's 6.3 pence.

For the year ended March 31, the company said its pretax profit before one-off items rose to 29.5 million pounds ($42.7 million) from 28.3 million pounds last year. Revenue fell 2.9 percent to 245.8 million pounds.

Order book for the group increased 23 percent to 353 million pounds at March 31.

"The group continues to have good forward visibility from its order book and high levels of recurring revenues from a diversified customer base," Chief Executive Nick Robinson said in a statement.

Phoenix IT shares were up 1.7 percent at 243 pence at 0712 GMT on the London Stock Exchange. ($1=.6915 Pound) (Reporting by Tresa Sherin Morera in Bangalore; Editing by Prem Udayabhanu)