Launched last month, the Future Proofing Kier initiative will see the group focus on three key market positions, infrastructure services, buildings and developments & housing.

In a trading update issued today following the conclusion of its financial year on 30 June 2018, Kier said the programme aims to deliver an improvement in operating margins and cash generation.

“It is anticipated that material benefits will be realised in the financial year ending 30th June 2020 and beyond,” the company added.

The Board also disclosed that underlying profit and earnings would be in line with expectations, with year-end net debt in the range of £170m to £190m.

Further details on the streamlining programme will be revealed in Kier’s full year results which are scheduled to be announced in September.