Kier Group said it expected to deliver half-year results above expectations with the sale of its housebuilding arm edging closer.

In a trading update for the six months to December 31 the construction and infrastructure firm, which has a base in Gloucester and has various projects in the county, said it had seen an improvement in site productivity and expected improved results on the previous year.

Measures to restructure the company are expected to save at least £105million from July.

A company statement said: "The group continues to win high-quality work in our chosen markets resulting in a strong order book which is slightly above year-end levels, despite the difficult trading environment due to the pandemic.

"This order book, combined with our project management expertise, long-standing customer relationships and recent Government announcements of increased spending on national infrastructure, gives us confidence in the outlook for the group."

Kier Living, which last week reported an £89million loss in the year to June, was put up for sale 18 months ago.

According to Sky News, the company is close to entering talks with potential new owners with a decision possible with the next week.