Kier Group PLC (LSE:KIE) announced a good performance for the first half to end-December 2021, despite inflationary pressures, and forecast that interim results in line with board expectations.
The infrastructure services group said its order book stood at £8.0bn at end-2021, up 4% compared with a year earlier.
It said new contract awards were higher than the previous year, although it noted that order book growth was later than anticipated due to procurement delays.
"The first half of the year has started well and we continue to trade in line with our expectations," said chief executive Andrew Davies.
"The increased order book gives us the confidence in the achievement of our medium-term value creation plan and the continued success of the group, which with financial and operational flexibility, is well placed to pursue its strategic objectives within its chosen markets."
Kier Group said it is confident of meeting its medium-term targets of revenue of £4bn-£4.5bn and adjusted operating profit margin of around 3.5%.
It said average month-end net debt has reduced from £436mln to below £200mln period over period as a result of its successful capital raise, the sale of Kier Living and cash generation.