Hercules Site Services PLC (AIM:HERC) posted record revenues and underlying profits in the 2023 financial year as work on the Birmingham section of HS2 rail link hit full stride.
Staff supplied to HS2 rose to 425 from 280 in the year to end-September 2023, helping to boost revenue by 71% to £84.7 million and underlying profits (adjusted EBITDA) by 79% to £4.1 million.
Total operatives supplied by the construction worker specialist rose to more than 1,000 from 750. New contracts were also won with Balfour Beatty Rail, Thames Water and Anglian Water.
Brusk Korkmaz, Hercules' chief executive, commented that it had been a transformative year for the business with the better-than-expected numbers, contract wins and getting ready for the launch of its training academy this month.
“As the infrastructure and construction sectors continued to face labour supply and skills shortages, we were able to deliver for our clients, including a range of blue-chip companies including Galliford Try, Balfour Beatty, Costain and Vinci,“ he added.
Post-year end, Hercules also made is first acquisition, Future Build Recruitment, and more M&A is planned, Korkmaz said.
Pre-tax profits for the year rose to £641,000 (£160,000) with cash at the year end also increasing to £4.2 million (£1.2 million).
An unchanged final dividend of 1.12p has been proposed.