The announcement comes as it revealed a record year end order book which increased by 15% to £16.4 billion (2019: £14.3bn); providing “clear medium-term visibility” for the group. A strong cash performance exceeded previous guidance with average net cash at £527 million (2019: £325m).

Underlying profit from operations (PFO) came in at £51m (2019: £221m), after its decision to repay the UK Job Retention Scheme.

Leo Quinn, Balfour Beatty group chief executive, said: “Throughout the pandemic, we have protected the Group’s strengths, supported our stakeholders and held firm to our disciplines. That we achieved this while exceeding our own targets for net cash demonstrates Balfour Beatty’s resilience and the dedication of our people and partners.  

“Our leading positions in large growing infrastructure and construction markets, record year end order book and £1.1 billion Investments portfolio provide confidence in future cash generation. This underpins our new capital allocation framework which demonstrates Balfour Beatty’s commitment to deliver enhanced returns to shareholders.”