Andrew Davies, Chief Executive said: “The current financial year has started well and, despite the ongoing inflationary pressure and supply chain challenges, it is especially pleasing that we are trading above the corresponding period last year, and in line with our expectations.

“We remain well positioned to continue benefiting from UK Government infrastructure spending commitments and we remain focused on the delivery of a sustainable net cash position with capacity to invest, in line with our medium-term value creation plan.”

Kier said it had secured 91% of its full-year order book at £10.5bn and the integration of the recently acquired Buckingham Group Contracting’s rail assets was going well.