HS2 labour supplier announces record revenues

By Staff

A Cirencester company supplying labour to projects such as HS2 and Sizewell C nuclear plant has reported record revenues for the first half of the financial year.

In a set of unaudited interim results for the six months ending March 31, 2024, Hercules Site Services said revenue had jumped 32% to nearly £50m, compared to the same period last year.

The AIM-listed firm also posted an increase in gross profit of 21% to 8m, while adjusted EBITDA – a type of profit measurement – rose 91% to 21.1m.

The business supplied 450 operatives for the Northern section of HS2 and 550 to other sites over the period. It also signed contracts with British construction firm Costain and housebuilder Hill Group.

Hercules said its November acquisition of construction recruitment firm Future Build, which has offices in London and Brighton, had bolstered the company’s performance.

“The start of the year has been very positive indeed,” said Brusk Korkmaz, chief executive. “This continued success has been achieved by a great management team which has a desire to over-achieve.”

The company’s civil projects division won £14m of contracts for the financial year 2024 – up from £10m at March 31, 2023.

“The civil projects division has won a significant number of tenders, new clients include Trant Engineering and Curio Group, and is well on the way to achieving its targets in 2024,” Mr Korkmaz added.

“We are on track to meet market expectations for the full year, as the strong momentum in the construction and infrastructure sectors continues.”

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Hercules also opened its Construction Academy on January 31, which it said had generated “significant interest and initial revenues” from colleges, customers and the wider industry.

The firm announced an interim dividend of 0.6p.

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