UPDATE 1-BSS Group buys Direct Heating Spares for 5.7 mln pounds

* Says buys heating industry parts seller for 5.7 mln stg

* Maintains outlook of flat full-year profit

* Sees higher exceptional costs for year ended March 31

* Sees acquisition to add to earnings

* Shares up 1 pct (Adds details)

April 3 (Reuters) – British plumbing and heating company BSS Group Plc BTSM.L said on Friday it acquired privately held Direct Heating Spares (DHS) for 5.7 million pounds ($8.39 million) in cash, while maintaining its outlook of a flat full-year profit.

The company expects the acquisition of the independent distributor of domestic heating spares from Gough family shareholders to add to earnings in the current financial year.

BSS also said its cost-saving initiatives during the final quarter could result in higher exceptional costs for the year ended March 31.

However, the group’s financial position remained strong with expected net debt of 86 million pounds on March 31 compared with 104 million pounds year ago, the company added.

Shares of the company rose 1 percent to 303 pence at 0723 GMT on the London Stock Exchange. (Reporting by Ramkumar in Bangalore; Editing by Anil D’Silva)

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