In a first half trading statement this morning, Kier said it has slashed average month-end net debt by around £100m to £140m. This is the lowest level in over five years.

Kier’s order book at the end of 2023 was also 6% up at £10.7bn on the year-end position in June 2023.

It now has secured 92% of forecast revenue for this financial year, excluding long-term framework positions from the order book. 

Recent awards at construction include: four education projects worth £150m, a healthcare project worth around £60m and the contract to deliver a new houseblock for the Ministry of Justice at HMP Elmley worth over £100m.    

Chief executive Andrew Davies said: “Kier has made a good start to the year, in line with our expectations.

“I am particularly pleased with the progress we are making on reducing debt, which has resulted in the group materially deleveraging its balance sheet in the first half.

“We have achieved this through disciplined growth as well as our unstinting focus on operational excellence, cash management and cash generation.

“Kier remains well positioned to continue benefiting from UK Government infrastructure spending commitments and this gives the board every confidence in delivering our medium-term value creation plan.”

Davies added that the board now had confidence to resume dividend payments in the current financial year, commencing with an interim dividend to be announced alongside the December 2023 half-year results.