Hercules PLC (LSE:HERC) this week landed £6.5 million of new work in the water sector as utilities step up spending under a fresh regulatory cycle.
CEO Brusk Korkmaz and CFO Paul Wheatcroft joined the Proactive studio to talk about the company’s new £6.50 million water industry contracts and its growing role in UK infrastructure. They discussed Hercules’ partnerships with major water utilities, the record £104.00 billion investment in the sector during AMP8, and how the company is positioned to deliver vital water and wastewater projects nationwide.
Here, we take a closer look at what was said.
Proactive: Brusk, can I start with you, could you give us a sense of why this announcement is so important for Hercules?
Brusk Korkmaz: With our experience and growing presence nationwide, more clients are trusting Hercules to deliver vital infrastructure projects. We look forward to doing this through our new contracts. Thank you, Stephen. Hercules has secured new water industry contracts worth about £6.50 million. This obviously strengthens our reputation as a trusted partner and shows our growing presence across key regions in the water industry. With major investment in water projects happening now, Hercules is ready to play an important role in improving water and wastewater services across the UK.
Proactive: And Paul, which water utility companies does Hercules work with?
Paul Wheatcroft: Hi, Stephen. Hercules is already working with the following water regions in the UK: Anglian Water, Thames Water, Southern Water, Severn Trent Water, Wessex Water, United Utilities, Welsh Water and Yorkshire Water. And it has also announced recently that we have new agreements with Galliford Try, Costain, Tilbury Douglas, NWH Treatment, Glanua, and Thames Water. This really does demonstrate the strength of Hercules’ position within the UK water sector as a trusted delivery partner across the UK.
Proactive: Also happening within the water industry in relation to infrastructure upgrades?
Paul Wheatcroft: Yeah, interesting. Following regulatory reviews by Ofwat, water utility companies are expected to invest more than £104.00 billion in infrastructure development during the current asset management period. That's AMP8, which began this year. This represents a record level of capital expenditure in the water sector, focusing on environmental improvements, reducing pollution incidents, upgrading aging infrastructure, and also increasing resilience to climate change. Plenty of new supply and construction labour opportunities have been generated by this investment. And we're very excited by Hercules’ role at the forefront of it all.
Proactive: And so Brusk, what does the future hold for Hercules?
Brusk Korkmaz: Thank you, Stephen. Like Paul said, it's very, very exciting for us. Hercules is a technology-enabled labour supply company in the infrastructure and construction sectors operating in the UK. And we are set to play an important role in improving water and wastewater services across the country. With our experience and growing presence nationwide, more clients are trusting Hercules to deliver vital infrastructure projects. We look forward to doing this through our new contracts.
Proactive: Well, I hope you'll keep us updated with progress on that. Thank you both very much for speaking with us today.