Hercules PLC (LSE:HERC) CEO Brusk Korkmaz and CFO Paul Wheatcroft take Proactive's Stephen Gunnion through the company’s financial performance, strategic decisions, and growth outlook within the UK infrastructure sector.
Korkmaz reported that Hercules achieved record revenue of £54.60 million in the first half of the year, marking an 18% year-on-year increase. "Our labour supply division delivered 31% revenue growth, driven by increased labour activity on major infrastructure projects such as Sizewell C and HS2," he said. The company's digital platform continues to support efficient labour deployment across its projects.
Wheatcroft explained the rationale behind the sale of Hercules PLC’s suction excavator subsidiary. The business was sold for £2.3 million, eliminating 88% of the company’s debt while contributing less than 5% of revenue. The sale allowed Hercules PLC to reduce debt and lease liabilities by £9 million, freeing up capital to invest in its core labour supply operations.
The company is maintaining its growth momentum through both organic expansion and acquisitions. Korkmaz highlighted ongoing efforts to support major infrastructure projects and noted a growing presence in rail, power, energy, and water sectors. A regional office has been established near Sizewell C to support long-term delivery.
The Hercules Academy, located in Nuneaton, plays a key role in workforce development, having trained over 1,500 individuals since its opening in early 2024. Wheatcroft emphasised its importance, noting that "the UK will need nearly a quarter of a million additional construction workers by 2027." The recent acquisition of QTT will further enhance the company's training capacity and curriculum.
Looking ahead, Korkmaz stated, "We anticipate continued momentum in the second half of this year with performance typically weighted towards the second part of the year." He expressed confidence in meeting full-year market expectations, with key priorities including scaling the labour supply division, expanding into civil frameworks, and integrating QTT into the Hercules Academy.
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