British Gas group Centrica has reported a sharp rise in profits and dividend payouts but saw shares tumble as investors worried about growth in the US.

The group, which also owns the breakdown service AA and the Goldfish credit card business, said operating profits for the year to December 31 rose 58 per cent to £809 million while pre-tax profits were up to £719 million, from £468 million.

Turnover rose to £14.3 billion, up from £12.6 billion.

Centrica said it was raising its dividend to shareholders by 29 per cent to 4p.

However, shares tumbled 7 per cent to 154.5p, as investors worried about its operations in the US.