Hercules Site Services PLC (AIM:HERC) has announced a five-year contract to supply Balfour Beatty plc (LSE:BBY) with labour as part of a sweeping railway upgrade project.
Balfour Beatty is due to carry out work on behalf of Network Rail, Transport for Wales and London Underground as part of a five-year, £44 billion project to upgrade railways.
Under this, Hercules has agreed to be one of six suppliers of labour to Balfour, with the work due to take place between 2024 and 2029.
Specialists from Hercules will work on live railways for the first time under the agreement, offering a new revenue stream as a result, chief executive Brusk Korkmaz said.
“We have previously provided personnel to deliver heavy civils and earthworks to pre-enable rail-based projects,” he continued.
“This contract will see us recruit specialist rail labour on live track on behalf of a customer for the first time, opening up a wider range of opportunities for Hercules in the rail industry.”
Hercules added that its work under the HS2 project had been unaffected by Prime Minister Rishi Sunak’s decision to scrap the Manchester link last week.
Work on the London to Birmingham link “continues to build momentum”, the group said in a statement.