Shares in Centrica were down on the FTSE 100 in morning trading after the energy group and owner of British Gas said it had acquired JK Environmental Services (UK) Limited for seven million pounds.

JK Environmental Services (UK) Limited is based in Hertfordshire and provides environmental services, sewer cleansing and tankering to businesses. The company will be absorbed by Centrica's Electrical & Dyno Services business.

Centrica said it expected the acquisition to strengthen Electrical & Dyno's position in the British drain-industrial and commercial sector.

Although JK Environmental Services (UK) Limited will become part of Dyno Rod, the company will still operate under it's own name and fulfil its existing contracts.

Nina Bhatia, Managing Director of Electrical & Dyno Services at Centrica, said, "The acquisition of JK Environmental Services gives Dyno-Rod a significant presence in the industrial and commercial sector, complementing its market-leading position in the residential sector and providing a strong platform for future growth. Our focus will be on expanding our activity with the UK's water and sewerage companies. We will also actively consider how JK Environmental Services' complementary skills can add value to British Gas' commercial and local authority customers and create opportunities to win further business."

By 10:35 shares in Centrica were down 0.03 per cent on the FTSE 100 to 317.90 pence per share.