The UK gas and home services group Centrica has reported better than expected first half results despite rising wholesale gas prices and retail charge caps, and said it is looking to expand in the US and Europe.

Total revenue grew 43% through a combination of growth and acquisitions in the six months to June.

Pre-tax profits after one-off charges rose to �364m, up from �359m for the same period last year.

Centrica now operates in the UK under a variety of brands.

It sells gas to UK customers under the British Gas brand, operates the Goldfish credit card, owns the AA breakdown service, and earlier this year bought the OneTel telecoms company.

Expansion plans

Centrica's chief executive Roy Gardner said the company was winning back many old British Gas customers who had left the company when the domestic gas market was first opened up.

The electricity supply business has moved into profit for the first time, and the company said it was on target to sign up seven million electricity customers within two years.

Outside the UK the company aims to have signed up ten million customers in the UK by 2003, and five million in Europe by 2005.

Centrica said its domestic gas supply business had suffered until April from caps on the prices it could charge, together with higher wholesale gas prices.

But these higher wholesale prices meant its Morecambe gas field benefited, and profits from gas production rose to �336m from �91m in the same period during 2000.

The company also said profits at its AA breakdown recovery business had risen, and it saw the "potential to add additional higher margin motoring products and services under the AA brand, increasing profitability further".

Centrica's results were well received by investors, and the company's shares were the best performers in the FTSE 100 on an otherwise grim day for stocks.

At lunchtime the shares were up 6.5p at 225.5p.