Kier Group, saw its share price rise sharply in early morning trading after posting a positive business update.
The property, residential, construction and services group, saw its share price climb over 12% to 1083.70.
Kiers is one of a number of companies that is set to benefit from the collapse of infrastructure giant Carillon.
Only this week Kier took on around 200 former employees of Carillion’s as it assumed responsibility for work on UK motorways and the HS2 rail line.
Kier and Eiffage have taken over responsibility for the HS2 joint venture and Kier is assuming full responsibility for the Highways England smart motorways schemes on which it had been working in joint venture with Carillion. Kier insisted both contracts were performing well, both operationally and financially.
Following the collapse of Carillion, City analysts such as Peel Hunt were quick to tip Kier as a potential beneficiary of Carillion’s fall. Kier’s share price rose 6% following the Carillion announcement and today’s share price rise continued the upward momentum.
In its latest trading update, Kier revealed that its combined construction and services order books remained strong at .£9.5bn, with 100% of forecast revenue for the 2018 financial year secured, providing good visibility.
In addition, it pointed out that its’ highways business was currently in negotiation with Highways England for three-year extensions to its Area 3 and 9 contracts, with a final decision expected by the end of March 2018.
Kier said the McNicholas acquisition was performing well and provided a highly complementary addition to its utilities services business.
Commenting on the latest business update, Haydn Mursell, chief executive of Kier Group, said: "Our first half performance continues to demonstrate the strength and stability of the business and the benefits of our client focused strategy.
“We have leading market positions in infrastructure services, building and development which provide the platform to support further growth and position the group well for the future. The group remains on course to deliver double digit profit growth in the current year and to achieve its Vision 2020 targets."