Average month-end debt down to less than 拢40m after being close to 拢550m at one stage

Kier said its average month-end net debt fell further with the firm cutting it to below 拢50m in the first six months of the year.

The contractor saw the figure fall by nearly 拢100m to 拢38m in the interim period to 31 December last year.

The firm鈥檚 average month-end net debt at one stage stood at close to 拢550m with analysts now expecting the contractor, which returned to the FTSE 250 list of the UK鈥檚 biggest quoted companies last year, to return to a net cash position by early 2026 at the latest.

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Andrew Davies has overseen a huge cut in the firm鈥檚 debt pile since taking over in 2019

>> See also: 鈥楾his industry is absolutely fine鈥︹�� Andrew Davies on the naysayers, rescuing Kier and what the firm plans to do next

The firm increased its interim dividend payment by 20% to 2p and chief executive Andrew Davies said: 鈥淥ur strong cash performance allowed us to significantly increase the interim dividend payment.鈥�

Revenue for the half year was up 5% to just under 拢2bn with the firm saying 98% of its full year revenue had been tied down. Pre-tax profit was up 6% to 拢29m while its forward order book was up 2% to 拢11bn.

In a note, broker Investec said: 鈥淭he Group delivered a good increase in H1 revenue and profits as expected. Its balance sheet continues to improve as previously guided and expected.鈥�

The firm is due to announce its full year results on 16 September.

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