Our view A reassuring update confirming that the Group is trading in line with expectations. The current order book provides good visibility with c.95% of FY25 revenue secured. It is also comforting that the Group continues to de-leverage in line with expectations and expects a significant period-on-period improvement. All as expected and we expect no material changes to consensus estimates on the back of this reassuring update. Valuation looks more attractive after the recent share price fall and in the context of this solid update. Update summary The update confirms that the current financial year (FY25) has started well and the group is trading in line with the Board's expectations. Similar to the previous year, the group's performance is expected to be second half weighted. The order book currently stands at c.£10.9bn (30 June 2024: £10.8bn) and c.95% of FY25 group revenue is estimated to be secured, up from 90% previously announced which provides a high degree of certainty. The Group states that bidding discipline and risk management embedded across the business continue to drive the high quality and profitable order book. The update also lists some good contract wins across end markets. The group maintains its focus on operational delivery and cash management and continues to de-leverage in-line with the Board's expectations and anticipates a significant period-on-period improvement. The group is well positioned to benefit from UK Government infrastructure spending plans into areas where it offers market-leading services. Kier Group plc will host a Capital Markets Event for analysts and institutional investors on 3 June 2025. Valuation The shares are up c.35% over the last 12 months and reside on FY25E P/E and EV/EBITDA multiples of only c.7x and c.2.3x, respectively.