Kier Group PLC (LSE:KIE) said it had delivered a strong first half and remained on track to meet full-year expectations, as the infrastructure and construction firm reported a record order book and a return to average net cash.
The order book stood at around £11.6 billion at the end of December, up from £11 billion a year earlier, the FTSE 250 group said in a trading update on Tuesday, with 94% of revenue for the current financial year already secured.
Kier highlighted new work across sectors, including education, defence, aviation and water. Awards during the period included two school construction contracts worth around £112 million, a £44 million deal with Southern Water, and an £85.5 million project to deliver a new government hub in Darlington.
The group also said it had reached a milestone with an average month-end net cash position of £15 million for the first half. That compares with the average net debt of £38 million in the same period last year.
Cash levels by the year-end are expected to be significantly higher than the £58 million recorded a year ago.
Chief executive Stuart Togwell said the achievement of an average net cash position for the period "represents a significant milestone and is testament to our culture of operational delivery and focus on working capital management".
Togwell and the board have also decided to merge Kier's transportation and energy-related operations into a single infrastructure division.
Two senior appointments were also announced: Tom Hinton, previously interim CEO at Wincanton, has joined as chief financial officer, while Martin Staehr, formerly of Laing O’Rourke, is now group managing director for construction.