REG - Hercules PLC - Trading Update

HerculesAnnouncement

Thu 07:00

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RNS Number : 7096B  Hercules PLC  02 October 2025

2 October 2025

Hercules plc

("Hercules" or the "Company")

 

FY25 Trading and Operational Update

 

Another record year expected as investment in UK infrastructure ramps-up

 

Hercules plc (AIM: HERC), a leading technology enabled labour supply company
for the UK infrastructure and construction sectors, is pleased to provide a
trading and operational update for the year ended 30 September 2025 ("FY25").

 

FY25 Trading Update

The Company expects another record year, with Hercules' revenue, adjusted
EBITDA and adjusted Profit Before Tax (PBT) for FY25 in line with market
expectations*. Revenue is expected to be more than £118m, representing an
increase of c. 16% on the prior year ended 30 September 2024 (£101.9m), as
Hercules continues to benefit from increased investment in UK infrastructure.

 

*Market expectation - revenue of £112.1m, adjusted EBITDA of £6.1m, and
adjusted PBT of £3.3m.

 

Brusk Korkmaz, Chief Executive Officer, commented: "Hercules will again
deliver record results, with more to look forward to in FY26, and beyond. With
strong support from the UK Government, the country's infrastructure sector is
buoyant, with £750 billion committed across numerous sectors, where Hercules
has a strong and growing presence.

 

"Major projects such as Sizewell C, Net Zero Teesside, the Lower Thames
Crossing, AMP8 water projects, and upgrades to the power and energy
transmission network are still in their early stages and Hercules is well
placed to benefit as they ramp-up.

 

"In the period, we have strengthened our position through acquisitions,
including our largest transaction to date, Advantage NRG, which marked our
entry into the power and energy sector. We are proud to note that Advantage
NRG is a specialist skilled labour supplier and is the biggest supplier of
overhead linesmen in the UK.

 

"Furthermore, we acquired the business and assets of Quality Transport
Training to significantly increase the capacity of the Hercules Academy in
Nuneaton as the UK looks to address its lack of skilled workers. Both
businesses have been successfully integrated.

 

"We look forward to announcing our full year results in mid-January 2026."

 

Operational Update

 

Continued investment in UK infrastructure set to benefit Hercules

Investment in UK infrastructure is increasing, with £750 billion committed
across numerous sectors in which Hercules has a strong and growing presence,
including:

 

Nuclear

The UK Government is undertaking a major push in nuclear investment,
committing to boost energy security and reach net-zero. One of the largest
investments is the Sizewell C power station, where Hercules is supplying
labour to the early works phase.

 

Following the Government's recent approval announcement, the Board believes
Hercules will continue to support the project through its main construction
phase, expected to span up to 20 years, with an estimated total cost of £30
billion. In anticipation of extensive works at Sizewell C, the Company has
established a regional office in Saxmundham, near Ipswich, to support
delivery.

 

Power and Energy

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.

 

Water

The UK water sector is undergoing a significant period of investment and
transformation, and Hercules is one of the nation's biggest companies for
labour supply and civil projects in this sector. Following regulatory reviews
by Ofwat, water utility companies are expected to invest more than £104
billion during the current Asset Management Period, AMP8 (2025 - 2030), which
began this year.

 

In September 2025, Hercules announced a series of new contract awards from its
clients in the UK water sector during the previous two quarters. The new
agreements total c.£6.5 million in value over their duration.

 

Hercules is working within the following UK water regions: Anglian Water,
Thames Water, Southern Water, Severn Trent Water, Wessex Water, United
Utilities, Welsh Water, and Yorkshire Water. The Board of Hercules expects to
secure additional contracts and deliver a wide range of projects over the
coming years as investment increases.

 

It is also important to note that beyond labour supply, Hercules is
specialised in carrying out civil projects in the water sector thanks to a
specialist arm of the business.

 

Rail

Control Period 7, CP7 (2024 - 2029) is the current five-year funding and
planning cycle for Britain's rail network with c£44 billion committed spend
by the Office of Rail and Road (ORR). Hercules' rail division, launched in
October 2023, has expanded and further growth is anticipated as Hercules
engages with additional Tier 1 clients in the rail sector. The Company's
labour supply business continues to benefit from its multi-year HS2 Phase 1
(Northern Section) contract.

 

Hercules Academy expanding to meet the demand for skilled workers

The UK's growing infrastructure project pipeline needs a skilled, job-ready
workforce. The Construction Industry Training Board projects that the UK will
need nearly 225,000 additional construction workers by 2027.

 

To help meet this need, the Hercules Academy was launched in January 2024 and
has trained more than 1,850 individuals since opening. To expand the number of
courses available and broaden the curriculum of the Academy, Hercules acquired
the business and assets of Quality Transport Training Ltd ("QTT") in June
2025.

 

In addition, the acquisition of Advantage NRG further boosted the training
capacity at the Academy, while opening-up more cross-selling opportunities
across the infrastructure sector.

 

In FY26, the Academy will add to its training offer across the infrastructure
and construction sectors, working with clients and stakeholders to address
skills shortages throughout the 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.

 

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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