Pre-tax profit in the year to 30 June soared to £52m, up from £16m previously, after revenue grew 7.5% to £3.4bn.

The improved performance, which saw group margin increase to 3.9%, prompted Kier to announce it would be resuming dividend payments to shareholders in the year ahead.

Andrew Davies, chief executive, said: “The group has achieved considerable operational and financial progress over the last two years. This is reflected in the significantly improved financial performance of the group over the last year.

“Our order book remains strong at £10.1bn and provides us with good, multi-year revenue visibility.

“The contracts within our order book reflect the bidding discipline and risk management now embedded in the business.”

Around 85% of target revenue for the year ahead has now been secured providing the group with confidence of further progress against the backdrop of wider market uncertainty, said Davies.

Kier has mitigated cost inflation pressures with around 60% of its order book under target cost or cost reimbursable contracts.

Across the business profit from operations nearly doubled to £82m. Construction profits strongly improved driven by increased volumes and the impact of the prior year’s restructuring.

The infrastructure division benefited from a continued ramp-up of Kier’s HS2 works.

Davies said the realignment of infrastructure services in July into two distinct business units – Transportation; and Natural Resources, Nuclear & Networks – would provide a stronger platform to pursue strategic market opportunities.

Despite better cash generation last year, average month-end net debt rose to £232m from £216m in 2022.

Davies said the anticipated increase in average month-end net debt was due to the repayment of the Kier early payment system and lower activity in the construction business until the fourth quarter of the year.