HS2 rail contract puts Hercules on fast track
Construction engineering company Hercules Site Services is expecting to maintain momentum throughout this year after confirming an 85% increase in first-half revenues.
The Cirencester-based provides a range of services across the UK infrastructure sector, including supplying 400 people to the northern section of the London-Birmingham HS2 rail project.
It is also now supplying labour to Taylor Woodrow, at the Exxon-Mobil oil refinery expansion in Fawley, near Southampton.
The company raised £1.7m earlier this year to help fund its planned growth.
Founder and chief executive Brusk Korkmaz said: “With this strong momentum in the construction and infrastructure sectors, and a solid pipeline of new clients, we are ideally placed to maintain the levels of growth we have delivered in recent years and are on track to meet market expectations for the full year.”
Hercules Site Services floated in February 2022 at a placing price of 50.5p per share, raising £8m. Although its share price reached 73p in February, it closed on Friday at 36p.
The firm has confirmed that its first-half revenues grew by 85% to £37m, while adjusted EBITDA – a measure of operational profitability – was up 73% to £1.1m.
Korkmaz added: “This success has been achieved through the continued labour supply services ramp-up at the HS2 northern section, the addition of new clients across all areas of our business and the delivery of more suction excavators in the period.
“We are also very pleased to see that our Skills, Employment and Education Everything Portal has become revenue generating, demonstrating again that we are at the cutting edge of labour supply and services innovation in the construction sector. The addition of new clients, namely Amey and SGN, has also further accelerated growth in our civil projects division.”