Announcing its results for the year ended 30 June 2022 this morning, the infrastructure services, construction and property group said its adjusted operating profit increased 20% to £121 million (FY21: £100m) and that it now enjoys an “industry-leading” margin at 3.7%, higher than the medium-term target of c.3.5%.

Net cash remained steady at £3m, while its average month-end net debt fell to £216m from £432m.

More certainty against the wider market backdrop was also provided by an increased order book from £7.7 billion last year to £9.8bn.

Andrew Davies, chief executive, said: “Over the last two years Kier has undergone a transformation, rationalisation and recapitalisation and the Group is delivering against its medium-term value creation plan.

“The performance over the last 12 months reflects our significantly enhanced resilience and strengthened financial position.

“The group is well positioned to continue benefiting from UK Government infrastructure spending commitments and we have a significantly increased order book of £9.8bn which gives us certainty against the market backdrop.

“The new financial year has started well and we are trading in line with our expectations, despite continued inflationary pressure and see no change in the current market outlook. We remain focused on the delivery of a sustainable net cash position and sustainable dividend policy, in line with our medium-term value creation plan.”