REG - Hercules PLC - Acquisition of Lyons Power Services Ltd

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RNS Number : 3739D  Hercules PLC  15 October 2025

15 October 2025

Hercules plc

("Hercules", the "Company" or the "Group")

Acquisition of Majority Stake in Lyons Power Services Ltd

Hercules plc (AIM: HERC), a leading technology-enabled labour supply company
for the UK infrastructure and construction sectors, is pleased to announce
that it has acquired a 70% shareholding in Warrington-based Lyons Power
Services Ltd ("Lyons Power Services" or "LPS"), a specialist UK and overseas
provider of power and energy infrastructure services.

The transaction is for a total consideration of £702,800 to be satisfied half
in cash and half in ordinary shares in the capital of Hercules (the
"Acquisition"). The remaining 30% shareholding in LPS will continue to be held
by the existing owner manager of LPS, who will remain actively involved in
driving LPS's future growth.

Strategic Rationale

·      The Acquisition aligns with Hercules' growth strategy by
expanding its service offering into complementary and high-growth
infrastructure sectors.

·      The move, which follows the acquisition of overhead linesmen
supplier Advantage NRG Ltd in June this year, bolsters Hercules' national
footprint and widens its already strong client base in the energy and power
sectors.

·      Hercules will support LPS in scaling its operations and pursuing
further opportunities within the power services market.

The Power and Energy opportunity

The UK is embarking on a major upgrade of its electrical infrastructure to
meet rising energy demand. National Grid proposals include £58 billion of
investment focused on extending and modernising the country's transmission and
distribution networks to deliver sustainable and reliable power across the UK.

To capitalise on this, in June 2025, Hercules entered the power and energy
sector with its largest acquisition to date, Advantage NRG Ltd ("Advantage
NRG").

Advantage NRG supplies linesmen for the construction and maintenance of
overhead electrical transmission lines. Hercules expects demand for skilled
operatives, particularly overhead linesmen, to increase substantially.

The acquisition of LPS will further cement Hercules' position in this sector.

Financial Details

•          The consideration comprises £351,400 in cash and
£351,400 through the issue of 965,915 ordinary shares at a price of 36.38
pence per ordinary share (the "Consideration Shares"), representing the 5-day
volume weighted average price ending 13 October. The cash element of the
consideration is financed through the Company's existing cash resources.

•          The Consideration Shares are subject to a 12-month
lock-in agreement followed by a 12-month orderly market agreement.

•          The vendor of Lyons Power Services (the "Vendor") can
sell the remaining 30% minority interest in LPS to Hercules, subject to the
terms of the agreement outlined below (the "Partnership Agreement").

•          In the year ending 31 January 2025, Lyons Power Services
generated revenues of £1,387,000 and profits before tax of £287,000. The
assets subject to the Acquisition had a net asset value of £245,000.

Further details about LPS

Lyons Power Services operates within the power and energy infrastructure
sector, providing specialist services to clients, which include manufacturers
such as Siemens and DNOs (Distribution Network Operators) like SSE, within the
transmission, distribution, and energy markets. Its client base includes some
Europe's largest electrical and energy infrastructure companies.

LPS offers a range of services, such as installation and commissioning of
switchgear and substation systems from 415V to 132kV, including Factory
Approval Testing, Site Acceptance Testing & Entry into Service,
maintenance and repair of switchgear from 415V to 33kV and Senior Authorised
Persons operating private networks up to 33kV.

Brusk Korkmaz, CEO of Hercules, said: "We are pleased to welcome Lyons Power
Services into the Hercules Group. This Acquisition strengthens our presence in
the critical power and energy infrastructure sector, providing both
diversification and long-term growth opportunities.

"LPS and its expertise in the booming power and energy sector will dovetail
nicely with our previous acquisition, Advantage NRG. The partnership structure
ensures that we retain the entrepreneurial drive of the LPS management team,
while leveraging Hercules' resources to scale the business further."

David Lyons, Managing Director of Lyons Power Services, added: "Hercules'
scale, reputation, and client relationships will allow us to accelerate our
growth while continuing to deliver the high-quality services our clients
expect. We believe our vision for the future is aligned with that of the
Hercules management team at what is an exciting time for the infrastructure
sector."

Partnership Agreement

Under the terms of the Partnership Agreement, the Vendor can sell his
remaining 30% minority interest to Hercules, between the seventh and tenth
anniversary of completion, at a consideration based on a multiple of 4x the
average EBITDA achieved by Lyons Power Services in the two years preceding the
minority interest sale. The consideration payable by Hercules for the
remaining 30% interest will be satisfied 50/50 by cash and ordinary shares in
the Company. Following the tenth anniversary of completion, Hercules has the
right to acquire any remaining minority interest held by the Vendor, based on
the same calculation.

 

Application for Admission and Total Voting Rights

Application has been made for admission of the Consideration Shares to trading
on AIM ("Admission"). It is expected that Admission will be on or around 17
October 2025. The Consideration Shares will rank pari passu in all respects
with the Company's existing ordinary shares. Following Admission, the total
number of ordinary shares in the Company in issue will be 80,585,543. This
figure may be used by shareholders as the denominator for the calculations by
which they will determine if they are required to notify their interest in, or
a change to their interest in the Company under the FCA's Disclosure and
Transparency Rules.

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 which has been incorporated into UK law by the European
Union (Withdrawal) Act 2018.

 

For further information and enquiries, please contact:

 

 Hercules plc                                                       c/o SEC Newgate

 Brusk Korkmaz (CEO)

 Paul Wheatcroft (CFO)

 SP Angel Corporate Finance LLP                                +44 (0) 20 3470 0470

 (Nominated Adviser and Broker)

 Matthew Johnson / Adam Cowl (Corporate Finance)

 Grant Barker / Rob Rees (Sales and Broking)

 SEC Newgate (Financial Communications)                       +44 (0) 20 3757 6882

 Robin Tozer / Ian Silvera / Nina Renata Pop       Hercules@secnewgate.co.uk

 

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