* H1 pretax profit 16.5 mln stg vs 15.4 mln stg
* H1 like-for-like sales up 1.5 pct
* 6 weeks to Aug 8 like-for-like sales flat (Adds detail)
By James Davey
LONDON, Aug 11 (Reuters) - British high street baker Greggs on Tuesday posted a 7.3 percent increase in first-half pretax profit and raised its dividend by 6.1 percent, but said rain in July had dented sales.
The Newcastle-based firm, which sells sausage rolls, pasties, sandwiches, cakes and bread to over six million customers a week from about 1,400 outlets, said sales at stores open more than a year were flat in the six weeks to Aug 8, having been up 1.5 percent in the 26 weeks to June 27.
"The high street trading environment remains difficult, not helped by the recent wet weather," said Chairman Derek Netherton.
Greggs's results were published as surveys showed the drop in house prices in England and Wales eased further in July and retail sales rose across Britain -- yet more signs the recession-hit economy is starting to find its feet again.
Greggs made a pretax profit of 16.5 million pounds ($27.50 million) in the first-half on total sales up 4.4 percent to 312 million pounds.
This compares with house broker UBS's forecast of a pretax profit of 15.8 million pounds and 15.4 million pounds in the previous year.
The firm ended the half with net cash of 14.9 million pounds and is paying a record interim dividend of 5.2 pence, building on 24 consecutive years of dividend growth.
Greggs said costs were being well managed, and the company was beginning to benefit from initiatives to simplify and centralise the business, in preparation for accelerated expansion.
Shares in Greggs, which have increased in value by 14 percent over the last three months, closed on Monday at 402 pence, valuing the business at 418 million pounds. (Reporting by James Davey, editing by Rhys Jones and Rupert Winchester)