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Mar 29, 2023

Hercules reports 85% growth

Unaudited interim results for the six months to 31st March 2023 show that revenue for Hercules Site Services increased by 85% to £37.0m (2022 H1: £19.9m)

Gross profit increased by 71% to £6.9m (2022 H1: £4.0m) but with finance costs of £577,000, the bottom line result was a pre-tax loss of £246,000 for the six months (2022 H1: £383,000 loss). In February Hercules raise £1.7m from shareholders through a share placing.

Founder and chief executive Brusk Korkmaz was delighted with the results. He said: "This success has been achieved through the continued labour supply services ramp-up at the HS2 northern section, the addition of new clients across all areas of our business and the delivery of more suction excavators in the period.

"With this strong momentum in the construction and infrastructure sectors, and a solid pipeline of new clients, we are ideally placed to maintain the levels of growth we have delivered in recent years and are on track to meet market expectations for the full year."

Hercules listed on AIM, the London Stock Exchange's alternative investment market, in February 2022.

Its biggest client is Balfour Beatty Vinci Systra joint venture on the northern section of the HS2 rail project. Hercules currently has approximately 400 operatives on site with BBVS, up from 180 a year ago, and that number is growing week on week, the company said.

New clients include John Sisk, Galliford Try Highways and CHC Highways (a Costain joint venture on the A1(M)).

Revenue from the suction excavator fleet was up 49% year on year due to fleet growth. The arrival of 10 more suction excavator trucks in March has taken the fleet to 30 vehicles. "These recent acquisitions complete our fleet for the foreseeable future," said chairman Henry Pitman.

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