Hercules plc (LSE:HERC) has reported that trading for the financial year ended 30 September 2026 was ahead of market expectations, with group revenue forecast to exceed £130 million, representing approximately 7.3% growth compared with the previous year.
The UK infrastructure services group also reported improvements in operating margins and cash generation, supported by activity across its Labour Supply, Power & Energy and Construction Services divisions.
Management said its operational priorities remain focused on cost management, improving efficiency and increasing collaboration between business units to support profitability and future growth.
The Labour Supply division recorded a 10% increase in client numbers during the year, alongside growth in white-collar recruitment activities.
The division continued to provide personnel for the HS2 infrastructure programme while expanding its customer base across the power, utilities and water sectors.
In Power & Energy, revenue increased by approximately 11%, supported by the contribution of Advantage NRG. Hercules identified planned investment of more than £30 billion in UK electricity transmission infrastructure as a potential source of future business opportunities.
The company expects Power & Energy to account for an increasing proportion of group revenue and profitability as it develops its activities in electricity transmission and related infrastructure services.
Within Construction Services, the Civil Projects business is expected to deliver approximately 25% revenue growth for the financial year, which would represent a record annual performance for the operation.
Hercules attributed the increase primarily to activity associated with AMP8, the UK water industry’s eighth asset management investment period, which is supporting infrastructure projects across the sector.
The group also reported increased cooperation between its operating divisions, including opportunities to provide multiple services to existing customers through cross-selling arrangements.
Management said its project pipeline continues to expand across water, power and energy infrastructure, reflecting opportunities associated with ongoing UK investment programmes.
Hercules provides specialist labour, civil engineering services and power infrastructure support to contractors and infrastructure operators. Its operations include skilled workforce provision, civil project delivery, overhead electricity line services and specialist field teams.
Looking ahead, the company intends to continue integrating its divisions, managing operating costs and pursuing opportunities across its principal infrastructure markets.
The group expects investment programmes in electricity transmission, water infrastructure and transport to remain central to its business development strategy, with Power & Energy identified as a particular area of focus.
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