Hercules PLC (LSE:HERC) has reaffirmed its full-year outlook after posting record revenue and a sharp rise in profits for the first half, underpinned by continued strength in its core labour supply business.
The AIM-listed infrastructure labour specialist said it was confident in meeting market expectations for the full year, citing a healthy pipeline, new contract wins, and growing demand from major construction projects including the Sizewell C nuclear power station.
Revenue rose 18% year-on-year to £54.6 million in the six months to 31 March, while adjusted earnings before interest, tax, depreciation and amortisation climbed 24% to £2.6 million.
Adjusted pre-tax profit jumped 55% to £1.7 million. The company declared an interim dividend of 0.6p per share, unchanged from last year.
Growth was led by the labour supply division, which saw a 31% rise in revenue, with operative numbers increasing across all active sites.
The company also highlighted £12 million in new contracts for its civil projects arm and ongoing investment in training, with over 1,500 people having now passed through the Hercules Academy.
Hercules ended the period with £9.8 million in cash, boosted by the £2.3 million sale of its suction excavator unit. The divestment reduced debt and lease liabilities by around £9 million.
Recent developments include a place on the Wessex Water Civils Support Framework and the acquisition of training provider Quality Transport Training Ltd.
Hercules pointed to long-term government infrastructure plans, including £700–750 billion in projected spend over the next decade, as a key driver of future growth.
CEO Brusk Korkmaz said: "Our progress is a testament to the strength of our management team, whose ambition and focus is driving the business forward.
"Progress we expect to continue as the UK carries out substantial construction and infrastructure upgrades within the nuclear, power and energy distribution, aviation, water, and rail sectors.
"With solid operational momentum, a healthy pipeline, and a positive outlook across the infrastructure sector, we remain confident in meeting market expectations for the full year."