UPDATE 2-Spice FY profit soars on strong utility markets

* FY pretax profit up 58 pct to 32.3 mln stg

* FY dividend up 25 pct

* Buys Australian telecoms firm ComGroup for 6.9 mln stg

* Shares reverse early gains to trade down 4 percent

(Adds company, analyst comment, shares, details)

By Rhys Jones

LONDON, July 13 (Reuters) - Utility support services group Spice (SPI.L) met expectations as full-year profit rose 58 percent, driven by acquisitions and growing regulatory markets, and said it had bought Australian telecoms company ComGroup.

Spice, which has supply and distribution divisions, on Monday reported a pretax profit of 32.3 million pounds ($52.33 million) on revenue 24 percent higher at 386 million pounds for the year to May 1.

Spice was expected to report a pretax profit of 32 million pounds for the year, according to a poll of eight analysts by Reuters Estimates.

Shares in Spice, which have fallen in value by a third in the last year, rose 6.6 percent to 73.35 pence but had fallen to 66 pence by 0845 GMT, valuing the group at 235 million pounds.

The company, which counts EDF Energy (EDF.PA), British Airways (BAY.L) and Starbucks (SBUX.O) among its customers, said its exposure to non discretionary spend and growing markets would help it through the tough economic climate.

"The UK electricity network is old and tired and the regulator is about to embark on a programme to replace old equipment and put in new technology. We have a big presence in the electricity market and expect to do very well out of it," Chief Executive Simon Rigby told Reuters in an interview.

KBC Peel Hunt Andrew Nussey said the outlook for Spice remained positive and that it would be helped by its "exposure to non-discretionary and regulated spend, rising barriers to entry, increasingly technical solutions and further cross selling potential".

Spice said its distribution business had acquired Australian mobile handset and systems maker ComGroup for 6.9 million pounds.

"We will be able to take the ComGroup offering to our clients and also take ours to theirs. The deal gives us a much stronger position in what is a huge market," says Rigby.

Spice raised the total dividend by a quarter to 1.5 pence per share. ($1=.6172 pounds) (Editing by Mark Potter and Mike Nesbit)