MIDAS VERDICT:

The 2018 collapse of Carillion sent shockwaves through the infrastructure world and highlighted the cracks at the heart of the relationship between the Government and the contractors that work for it.

Kier is still indebted, and there is still anxiety over the sector and Kier specifically. However, it is possible to see far further into Kier’s future than in previous years and it could be bright.

With Davies at the helm and a far more selective approach to bidding for contracts, the company’s valuation now looks undemanding. It trades on 3.7 forward earnings, compared with a sector average of nearly seven. The return of its dividend should help inspire further confidence. Buy.