Hercules PLC (LSE:HERC) Brusk Korkmaz and CFO Paul Wheatcroft spoke to Proactive about the company’s latest acquisition of Lyons Power Services, its growing presence in the UK energy infrastructure sector, and the strategic steps being taken to support the clean energy transition.
Here, we take a closer look at the conversation.
Proactive: Brusk, Paul, very good to speak with you. Brusk, I'll start with you. What can you tell us about Lyons Power Services?
Brusk Korkmaz: Thank you Stephen, Lyons Power Services work in the power and energy infrastructure sector. They provide specialist services to big clients like Siemens and SSE, helping to deliver major infrastructure, and transmission and distribution projects. Their team has a strong reputation in the industry and works with some of Europe's largest companies.
Proactive: And the strategic rationale behind the acquisition of Lyons?
Brusk Korkmaz: Yeah, this acquisition fits perfectly with our plan to grow Hercules in key infrastructure sectors. Lyons Power Services has real expertise in power and energy, both in the UK and abroad. It builds on our earlier acquisition of Advantage NRG. As you can remember, Stephen, Advantage NRG are experts in supplying overhead linesmen. And this acquisition also strengthens our position in the market that is seeing huge investment — around £58 billion in the UK energy infrastructure.
Brusk Korkmaz: This will help us scale up, support the UK's transition to cleaner energy, and deepen our relationship with our major clients, while also diversifying our revenue.
Proactive: Paul, what are the financial highlights of the deal and how is it being funded?
Paul Wheatcroft: Yeah. So the total consideration for the deal, which is for Hercules to buy 70% of Lyons Power Services, is £703,000, split equally between cash and shares — shares in Hercules. Obviously the cash portion is funded from our existing resources. And the shares are subject to a 12-month lock-in, followed by a 12-month orderly market agreement.
Lyons generated £1.4 million in revenue and £287,000 in pre-tax profit for the year ending January 2025, and they ended that year with a net asset value of £245,000.
Proactive: And Paul, can you tell us what role the existing management of Lyons will play post-acquisition?
Paul Wheatcroft: Yeah, sure Stephen. So the current energy manager who’s built the business up really from scratch will retain a 30% stake and will remain actively involved in the business. This ensures continuity and leverages their deep sector expertise to drive future growth. This partnership model — which is now the second one we’ve done after previously doing it with Future Build — is key to unlocking long-term value and maintaining operational excellence.
Proactive: Brusk, how does this acquisition position Hercules in the broader UK infrastructure and energy landscape?
Brusk Korkmaz: Thank you Stephen. It takes us to the next level in the power and energy space with Advantage NRG and now Lyons Power Services. We can meet the growing demand for supplying skilled workforce into the power transmission and energy infrastructure. It really positions us at Hercules as a key player helping to deliver the UK’s energy transition and build a more resilient infrastructure network.
Proactive: Gents, I hope you'll keep us updated on that transaction as it completes.