Kier, the infrastructure and construction group, said it expected profits in the current year to land at the top end of previous forecasts, buoyed by a swelling order book and a run of contract wins.
The upbeat guidance came as the group reported a strong set of full-year figures and unveiled fresh medium-term targets, including an ambition to grow adjusted earnings per share at a double-digit rate.
Kier is carrying good momentum into its new financial year, having recently landed major awards including work on the Hinchingbrooke hospital redevelopment, the East West Rail programme and station upgrades across Greater Manchester.
The order book climbed 8% to a record £11.9 billion, locking in more than 95% of the revenue the group expects to book in the year to June 2027.
For the year just ended, revenue rose 7.5% to £4.39 billion, up from £4.09 billion.
Adjusted operating profit grew 6.7% to £169.8 million, with the margin holding steady at 3.9%.
Statutory profit before tax edged up to £83.8 million from £78.1 million.
Perhaps the most striking milestone was on cash, where Kier posted an average net cash position for the first time in more than a decade, at £10.7 million, having spent much of the past ten years wrestling with debt.
Year-end net cash stood at £232.4 million, up almost 14%.
The board lifted the full-year dividend by 8% to 7.8p and is partway through a £25 million share buyback announced in March.
In a notable strategic shift, Kier said it would stop investing in new property developments from this year, redirecting that capital towards strengthening the balance sheet and sharpening its focus on the core infrastructure and construction arms.
The group is targeting average net cash above £200 million by 2029, a level that would give it room to repay a bond falling due that year.
Chief executive Stuart Togwell, marking the end of his first year in the job, said Kier was building a stronger, more focused business aligned with long-term growth in areas such as water, energy, defence and healthcare.
