REG - Hercules PLC - Interim Results
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RNS Number : 2158H Hercules PLC 05 June 2026
5 June 2026
Hercules plc
("Hercules", "the Group" or "the Company")
Interim Results
Investment for future growth
Hercules plc (AIM: HERC), a leading UK construction and infrastructure
services group, is pleased to announce its unaudited interim results for the
six months ended 31 March 2026 ("H1 2026").
Financial Highlights:
· Another period of growth and strategic progress, with revenue
increasing 8% to a record £59.2m (H1 2025: £54.6m)
· Strong gross profit growth of 10% to £8.9m (H1 2025: £8.1m),
reflecting continued demand across the Group's diversified infrastructure
activities and the benefits of an increasingly broad service offering
· Underlying EBITDA* of £1.7m (H1 2025: £2.6m), reflecting planned
investment in the Group's future growth, including major technology
enhancements, operational improvements and additional professional fees
associated with the extended FY 2025 audit process
· Underlying** pre-tax profit of £0.6m (H1 2025: £1.7m) and
underlying** EPS of 0.67p (H1 2025: 2.11p) reflecting the impact of
acquisition, extended audit and integration costs, as well as continued
investment in strategic growth initiatives
· Significant investment made during the period in the implementation
of new Pay & Bill and ERP systems, creating a scalable platform to support
future growth, improve operational efficiency and enhance management reporting
capabilities
· Continued strengthening of governance, systems, controls and
processes to support the Group's increasing scale and complexity following a
period of strong growth and acquisition activity
· Cost optimisation initiatives launched across the Group during the
period, with a focus on improving operational efficiency, reducing overheads
and enhancing profitability as revenues continue to grow
· Cash of £2.7m as of 31 March 2026 (H1 2025: £9.8m). Prior year cash
balances benefited from the equity raise completed in October 2024 ahead of
the Company's acquisition programme in FY 2025. The Group remains focused on
disciplined cash management and strong working capital controls
Operational Highlights:
· Labour supply division has seen a 5% year-on-year increase in
revenue, mainly due to Advantage NRG, Rail, White collar and Sizewell C
· Labour supply operative numbers continued to see steady growth
· Civil Projects division has won £14.0m of project contracts since
the start of FY 2026
· New clients gained with a high number of tenders completed in the
period
· Successful integration of Advantage NRG and acquisition of Lyons
Power Services firmly establishing the Group's presence in the power and
energy sector
· The Hercules Academy has trained over 2,500 people since launch and
is delivering in line with expectation
* Underlying EBITDA definition - earnings before interest, tax, depreciation,
amortisation, profit/loss on sale of fixed assets, exceptional items and
Research & Development expenditure.
** Underlying pre-tax, post-tax profit & EPS definition - same adjustments
as for EBITDA but also excluding exceptional, impairment and goodwill
amortisation.
Brusk Korkmaz, Chief Executive Officer, commented:
"Hercules has delivered record revenue in the first half of FY 2026, with
Group revenue growing 8% year-on-year to £59.2m. Whilst underlying EBITDA and
underlying earnings per share were lower than the comparative period, our
performance is typically weighted towards H2, and the Board is encouraged that
our operating performance is consistent with the strategic direction we set
out at the start of the period.
"The market backdrop for Hercules remains compelling. The Government's 10-year
national infrastructure strategy, backed by committed spend of £700bn to
£750bn, continues to translate into tangible momentum across our target
sectors.
"The Civil Projects division has won £14.0m of project contracts since the
start of FY2026, providing a strong platform as AMP8 activity accelerates. The
Advantage NRG business continues to perform well, extending our reach in the
Power & Energy sector. Together, these initiatives underpin the Board's
confidence in the business for the remainder of the year.
"I would like to thank our colleagues across the Group for their continued
dedication and hard work, and to extend my thanks to our clients, partners and
shareholders for their ongoing support and trust in Hercules."
For further information and enquiries, please contact:
Hercules plc c/o SEC Newgate
Brusk Korkmaz (CEO)
Paul Wheatcroft (CFO)
+44 (0) 20 3470 0470
SP Angel (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
Elisabeth Cowell / Ian Silvera / Darcey Dubell Hercules@secnewgate.co.uk
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.
Chairman's Statement
Executing our strategy, delivering on our pipeline
I am pleased to report that Hercules delivered another period of operational
growth in the first half of FY 2026, achieving revenue of £59.2m, an increase
of 8% on the prior year (H1 FY2025: £54.6m). The period was characterised by
significant strategic progress across the Group as we continued to invest in
the foundations required to support our next phase of growth. Alongside
integrating acquisitions completed during the previous financial year, we
invested heavily in major technology upgrades, including our new Pay &
Bill and ERP platforms, while also managing an extended audit process. This
expenditure inevitably impacted short-term profitability but position the
business to operate more efficiently, scale more effectively and deliver
greater long-term value for shareholders. Despite some delays to major project
starts across the infrastructure sector, trading remained resilient and we
continue to see substantial opportunities across our target markets.
Labour Supply
Labour supply remains the Group's core revenue driver and has seen a 5%
year-on-year increase in H1 2026. Operative numbers continued their steady
growth, and our scalable digital platform ensures we can meet increasing
client demand efficiently. In the period, we secured new clients and completed
a high level of tender activity, building a strong platform for H2 and beyond.
Nuclear energy and power transmission infrastructure represent some of the
most significant long-term investment opportunities in the UK market. With
substantial Government backing for new nuclear generation and major investment
planned across the electricity transmission network to support energy security
and the transition to net zero, the sector is entering a prolonged period of
growth. Hercules is well positioned to support these programmes through our
expanding labour supply, training and specialist power services capabilities.
We are already supporting early-stage nuclear projects, including Sizewell C,
and continue to strengthen our presence in the sector. In parallel, our
Advantage NRG and Lyons Power Services businesses provide a strong platform to
benefit from the increasing demand for skilled resources across transmission,
distribution and wider power infrastructure projects. The Government's
acquisition of the Wylfa nuclear site in North Wales further reinforces the
long-term commitment to nuclear energy and provides additional future
opportunities that we will continue to monitor closely.
Construction Services
The Civil Projects team has had a productive first half, winning £14.0m of
project contracts and yet again gaining several new clients. Activity in the
water sector, whilst the period started more slowly as the market transitions
from AMP7 to AMP8, is building momentum. The AMP8 cycle represents a doubling
of investment versus AMP7, and with the team actively engaged in budget
pricing for clients, we are well positioned to benefit as project flow
increases through H2 2026 and beyond.
The Hercules Academy has now trained over 2,500 people since its launch in
January 2024. Delivery of Skills Bootcamps across several prisons has
increased and partnerships with local authorities are enabling us to attract
new entrants to the industry. The Academy continues to generate strong
interest from clients, and I am encouraged by the progress of several
collaboration discussions that are at an advanced stage.
In the period we were delighted to announce that we had acquired a 70%
shareholding in Lyons Power Services Ltd (LPS), a specialist UK provider of
power and energy infrastructure services. We look forward to building further
cross-selling opportunities in the growing power and energy sector.
Financial Results
Revenue for the period grew by 8% to £59.2m (H1 2025: £54.6m). Gross profit
increased 10% to £8.9m (H1 2025: £8.1m).
Underlying EBITDA was £1.7m (H1 2025: £2.6m). Delays in a number of large
infrastructure project starts had an impact in H1 FY2026, and the employers'
NIC increase had an effect on margins. Administrative expenses were also
impacted by the NIC change, but most of the increase from (£5.5m to £7.2m)
relates to £1.3m of expenditure associated with new acquisitions.
Cash was £2.7m as of 31 March 2026 (H1 2025: £9.8m). The cash was higher at
the same point in the prior year due to the Group having completed an equity
raise in late 2024 to provide funding for future acquisitions.
Interim Dividend
There will be no interim dividend in FY2026 (2025: 0.6p) as a result of our
commitment to systems development and enhancements to support the continued
growth of the business. The Board will keep the Company's dividend policy
under review.
Outlook
The backdrop for UK infrastructure investment is the strongest it has been for
a generation, and our management team is focused on converting that
opportunity into profitable, controlled growth. I am proud of what our teams
are delivering day in, day out across an increasingly complex and broad set of
projects, and I look forward to reporting on further progress at the year end.
Henry Pitman
Non-executive Chairman
4 June 2026
Consolidated Statement of Comprehensive Income
6 Months Ended 31 March 2026
Unaudited Audited
Unaudited
6 months to Year ended 6 months to
31-Mar-26 30-Sep-25 31-Mar-25
£m £m £m
Continuing operations
Revenue 59.2 121.2 54.6
Cost of sales (50.3) (103.0) (46.5)
Gross profit 8.9 18.2 8.1
Recurring administrative expenses (7.2) (11.8) (5.5)
Adjusted EBITDA Subtotal 1.7 6.4 2.6
Depreciation (0.6) (1.0) (0.6)
Amortisation & Impairment (0.7) (0.9) (0.1)
Non-recurring costs (0.1) (1.1) (0.1)
Major Investments (0.6) (1.5) (0.2)
Loss on sale of fixed assets - (0.1) -
Operating (Loss)/Profit (0.3) 1.8 1.6
Fair value gains 0.1 0.3 -
Finance costs (0.5) (1.3) (0.5)
(Loss)/Profit before tax (0.7) 0.8 1.1
Taxation - (0.2) -
Net (loss)/profit for the period (0.7) 0.6 1.1
Discontinued operations
Loss for the period - (0.7) (1.2)
Total (loss) for the period (0.7) (0.1) (0.1)
Continuing operations
Net (loss)/profit (0.7) 0.6 1.1
EPS ((loss)/earnings per share) (0.88)p 0.75p 1.41p
Consolidated Statement of Financial Position
31 March 2026
Unaudited Audited Unaudited
31-Mar-26 30-Sep-25 31-Mar-25
£m £m £m
Non-current assets
Tangible 7.5 7.5 7.9
Intangible 16.5 16.5 2.2
24.0 24.0 10.1
Current assets
Inventories - - -
Trade and other receivables 22.9 22.9 22.1
Cash and cash equivalents 2.7 7.2 9.8
Total current assets 25.6 30.1 31.9
Total Assets 49.6 54.1 42.0
Equity and liabilities
Share capital 0.1 0.1 0.1
Share premium 13.1 12.8 12.8
Share based payment reserve 0.1 0.1 0.1
Retained earnings (1.5) (0.8) 0.3
Total equity 11.8 12.2 13.3
Non-current liabilities
Deferred tax liabilities 1.9 1.9 0.7
Deferred contingent consideration 4.0 4.3 1.0
Borrowings 6.0 6.0
Lease liabilities 3.7 4.0 0.7
Total non-current liabilities 15.6 16.2 2.4
Current liabilities
Trade and other payables 13.5 17.4 12.7
Borrowings 7.0 6.1 8.9
Current tax payable 0.7 1.2
Lease liabilities 1.0 1.0 4.7
Total current liabilities 22.2 25.7 26.3
Total liabilities 37.8 41.9 28.7
Total equity and liabilities 49.6 54.1 42.0
Consolidated Statement of Changes in equity
6 Months Ended 31 March 2026
Share capital Retained earnings Total equity
(Unaudited) (Unaudited) (Unaudited)
£m £m £m
At 1 October 2024 as previously stated 10.8 0.9 11.7
New share capital - - -
Share premium 2.1 - 2.1
Dividend paid - (0.9) (0.9)
Total comprehensive profit for the period - 0.4 0.4
Balance at 31 March 2025 12.9 0.4 13.3
Share capital Retained earnings Total equity
(Unaudited) (Unaudited) (Unaudited)
£m £m £m
At 1 October 2025 as previously stated 13.0 (0.8) 12.2
New share capital
New share premium 0.3 0.3
Dividend paid
Total comprehensive profit for the period (0.7) (0.7)
Balance at 31 March 2026 13.2 (1.5) 11.8
Consolidated Statement of Cash Flow
6 Months Ended 31 March 2026
Unaudited Audited Unaudited
6 months to Year ended 6 months to
31-Mar-26 30-Sep-25 31-Mar-25
£m £m £m
Cash flows from operating activities:
(Loss)/Profit for the period (0.7) 0.6 (0.1)
Taxation charge - 0.3 -
Finance costs 0.7 1.3 0.5
Depreciation 0.8 1.0 0.6
Amortisation of intangibles 0.4 0.3
Amortisation of goodwill 0.3 0.6
Fair value gain - (0.3)
Loss on disposal of property, plant & equipment - 0.1 0.8
Decrease in trade and other receivables 1.4 1.4 0.1
Decrease/(increase) in payables (5.2) 2.3 (0.2)
(Increase) in inventories (0.1) - -
Net cash from continuing operations (2.4) 7.6 1.7
Net cash generated from discontinued operations - 0.5 0.6
Net cash (absorbed by)/generated from operating activities (2.4) 8.1 2.3
Cash flows from investing activities:
Purchase of property, plant and equipment (0.6) (0.2) (1.2)
Net proceeds on disposal of property, plant and equipment - 0.3 1.9
Acquisition of subsidiaries (0.4) (11.9) -
Interest received - 0.2 0.1
Net investing cashflows generated from/(used in) continuing operations (1.0) (11.6) 0.8
Net investing cashflows used in discontinued operations - 1.8 (0.1)
Net cash generated from/(used in) investing activities (1.0) (9.8) 0.7
Cash flows from financing activities:
Interest paid (0.7) (1.0) (0.8)
Dividends paid - (1.4) (0.9)
Payment of lease liabilities (0.3) (1.4) (0.1)
Loans received - 6.0
Net cash flows (to)/from invoice discounting facility
1.9 (1.2) 0.7
Net proceeds from issues of shares - 2.0 2.0
Net financing cashflows generated 0.9 3.0 0.9
from/(used in) continuing operations
Net financing cashflows used in - (0.5) (0.8)
discontinued operations
Net cashflows generated from/(used in) financing activities 0.9 2.5 0.1
Net increase/(decrease) in cash and equivalents (2.5) 0.8 3.1
Cash and equivalents at start of the period 7.2 6.4 6.7
Cash and equivalents at end of the period 4.7 7.2 9.8
Cash and equivalents in discontinued operations - - -
Cash and equivalents in continuing operations at end of period 4.7 7.2 9.8
Notes
1. Notes to the Financial Information
Basis of preparation & accounting policies
The interim financial information for the six months ended 31 March 2026 is
unaudited and was approved by the Board of Directors on 4 June 2026.
The interim financial statements do not include all the information required
for full annual financial statements and should be read in conjunction with
the financial statements for the year ended 30 September 2025.
The interim financial information for the six months ended 31 March 2026,
including comparative financial information has been prepared on the basis of
the accounting policies set out in the last annual report and accounts.
The preparation of the interim financial statements requires management to
make judgements, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets, liabilities, income
and expense. Actual results may subsequently differ from those estimates.
In preparing the interim financial statements, the significant judgements made
by management in applying the Company's accounting policies and key sources of
estimation uncertainty were the same, in all material respects, as those
applied to the financial statements for the year ended 30 September 2025.
Going Concern assumption
The Company meets its day to day working capital requirements through its cash
balance.
Consequently, after making enquires, the Directors have a reasonable
expectation that the Company has adequate resources to continue in operational
existence for the foreseeable future. Accordingly, they continue to adopt the
going concern basis of accounting in preparing the interim financial
statements.
Information extracted from the Company's 2025 Annual Report
The financial information for the year ending 30 September 2025, as set out in
this report, does not constitute statutory accounts but is derived from the
statutory accounts for that financial year.
The statutory accounts for the year ended 30 September 2025 were prepared
under IFRS and have been delivered to the Registrar of Companies. The auditors
reported on those accounts.
2. Earnings per share
The calculation of adjusted earnings per share is based upon the adjusted
profit after tax for each respective period. The weighted average number of
ordinary shares used in the calculation of basic earnings per share is based
upon the number of ordinary shares in issue in each respective period.
3. Significant Capital Purchases
The Company acquired a 70% shareholding in Warrington-based Lyons Power
Services Ltd, a specialist UK and overseas provider of power and energy
infrastructure services, for a total consideration of £702,800 to be
satisfied half in cash and half in ordinary shares in the capital of Hercules
plc.
4. Share capital
80,585,543 ordinary shares were in issue as of 31 March 2026 (31 March 2025:
79,619,628)
5. Availability of interim results
The interim results will not be sent to shareholders but will be available at
the Company's registered office at Hercules Court, Lakeside Business Park,
Broadway Lane, South Cerney, Cirencester GL7 5XZ and on the Company's website:
www.herculesplc.com (http://www.hercules-construction.co.uk/)
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