Kier Group has recorded 5% year-on-year growth in its order book to total a record £11.6bn, providing a "clear path for future cash flows and earnings", it said.

In the six months to 31 December, the infrastructure services, construction and property group recorded revenue growth of 2.6% year-on-year, as its operating profit grew by 6.6%.

Its adjusted profit before tax also increased by 7.7% to £54.5m, while its adjusted basic earnings per share rose by 9.2% to 9.5 pence.

Furthermore, its net cash jumped by 78% to £102.9m.

Chief executive at Kier Group, Stuart Togwell, said: "We have delivered a strong first half, with good growth in both revenue and profits, reaching an average net cash position for the first time in 13 years, a significant milestone for the group. These results reflect the strength of our customer relationships, the quality of our teams and our operational excellence.

“Our order book has grown to a record £11.6bn and we have seen this momentum continue into the second half with a number of appointments to frameworks in key sectors of health, education, water and roads, with further clear opportunities ahead in energy and defence. This underpins the confidence we have in our ability to shape the future of infrastructure, supporting the delivery of the UK Government's 10-year pipeline of investment.”

In its outlook, Kier Group said that there is optimism around optimising its structure and leadership capability, supported by recent steps, to maximise the opportunities ahead and ensure that it is poised for further sustainable growth.

The group has reiterated its guidance for the full year, and as a result, it has increased its interim dividend to 2.6 pence and has launched a £25m share buyback scheme, following the completion of an initial £20m scheme.

After the publication of its full-year results, shares in the firm dropped by almost 3%.

Togwell concluded: "Following our strong first half performance, the Group continues to trade well with full year performance forecast to be in line with the board's expectations. With a growing, high quality order book, expert project delivery, robust cash generation and disciplined use of capital, we remain confident in driving further returns for our stakeholders."

---