Hercules has recently released two positive contract announcements, highlighting continuing momentum at the beginning of the current financial year. It is encouraging to see new business wins for both of Hercules divisions (Labour Supply and Civils Projects) and across two different infrastructure sectors (Water and Rail). The Group also remains busy on HS2 Phase One (London to Birmingham) despite the recently announced cancellation of Phase 2. It has been awarded a five-year contract to provide Balfour Beatty Rail with specialist labour for live track works. Hercules will be one of six suppliers supporting Balfour Beatty’s contracts under CP7, Network Rail’s five-year investment programme (running from 1st April 2024). The Balfour Beatty contract followed a positive update from Hercules’ Civils Projects division. The Civils division has been awarded contracts with a combined value of over £3.1m since 1st May to deliver critical work for two major clients (Thames Water and Anglian Water) on wastewater treatment and water management projects. We expect growth to be supported by a favourable outlook for infrastructure spending, a structural undersupply of skilled labour and Hercules’ recent organic investment in technology and fleet expansion. Our fair value remains 60p / share.