Hercules Site Services PLC (AIM:HERC) declared an interim dividend of 0.6p as it reported underlying profits ahead of management expectations.
The infrastructure sector labour and technology supplier revealed adjusted earnings (EBITDA) of £650,000 for the half-year to 31 March. Revenue increased 42% year-on-year to £19.9mln.
Labour supply revenue increased 27% year-on-year, civil projects revenue was up 80% and sales from the company’s growing suction excavator services business leapt 124%.
Adjusted EBITDA was down from £1.3mln a year ago, which the company said was in line with expectations due to major investment in people, systems and assets from which it expects to reap benefits as the year goes on.
Gross profit margin increased to 20.3% from 17.8% due to an increase in suction excavator revenue at higher margins. The loss before tax was £383,000 after £414,000 of expenses from its AIM listing in February.
Given the progress made in the first half, the board expressed confidence that Hercules is “well positioned for the step-change in growth” highlighted at the time of the IPO.
"We expect to deliver continued growth in H2 2022 through the ramp up of operatives on HS2, the delivery and monetisation of seven more suction excavators, and maintaining the significant momentum built up by the civil projects team,” said chief executive Brusk Korkmaz.
Korkmaz, whose personal investment vehicle owns a 71% stake in the company, has waived his entitlement to the interim dividend payment, which will be paid on 24 August.