Interim Results

5 June 2026

Hercules plc

("Hercules", "the Group" or "the Company")

Interim Results

Investment for future growth

Hercules plc (AIM: HERC), a leading UK construction and infrastructure services group, is pleased to announce its unaudited interim results for the six months ended 31 March 2026 ("H1 2026").

Financial Highlights:

· Another period of growth and strategic progress, with revenue increasing 8% to a record £59.2m (H1 2025: £54.6m)

· Strong gross profit growth of 10% to £8.9m (H1 2025: £8.1m), reflecting continued demand across the Group's diversified infrastructure activities and the benefits of an increasingly broad service offering

· Underlying EBITDA* of £1.7m (H1 2025: £2.6m), reflecting planned investment in the Group's future growth, including major technology enhancements, operational improvements and additional professional fees associated with the extended FY 2025 audit process

· Underlying** pre-tax profit of £0.6m (H1 2025: £1.7m) and underlying** EPS of 0.67p (H1 2025: 2.11p) reflecting the impact of acquisition, extended audit and integration costs, as well as continued investment in strategic growth initiatives

· Significant investment made during the period in the implementation of new Pay & Bill and ERP systems, creating a scalable platform to support future growth, improve operational efficiency and enhance management reporting capabilities

· Continued strengthening of governance, systems, controls and processes to support the Group's increasing scale and complexity following a period of strong growth and acquisition activity

· Cost optimisation initiatives launched across the Group during the period, with a focus on improving operational efficiency, reducing overheads and enhancing profitability as revenues continue to grow

· Cash of £2.7m as of 31 March 2026 (H1 2025: £9.8m). Prior year cash balances benefited from the equity raise completed in October 2024 ahead of the Company's acquisition programme in FY 2025. The Group remains focused on disciplined cash management and strong working capital controls

Operational Highlights:

· Labour supply division has seen a 5% year-on-year increase in revenue, mainly due to Advantage NRG, Rail, White collar and Sizewell C

· Labour supply operative numbers continued to see steady growth

· Civil Projects division has won £14.0m of project contracts since the start of FY 2026

· New clients gained with a high number of tenders completed in the period

· Successful integration of Advantage NRG and acquisition of Lyons Power Services firmly establishing the Group's presence in the power and energy sector

· The Hercules Academy has trained over 2,500 people since launch and is delivering in line with expectation

* Underlying EBITDA definition - earnings before interest, tax, depreciation, amortisation, profit/loss on sale of fixed assets, exceptional items and Research & Development expenditure.

** Underlying pre-tax, post-tax profit & EPS definition - same adjustments as for EBITDA but also excluding exceptional, impairment and goodwill amortisation.

Brusk Korkmaz, Chief Executive Officer, commented:

"Hercules has delivered record revenue in the first half of FY 2026, with Group revenue growing 8% year-on-year to £59.2m. Whilst underlying EBITDA and underlying earnings per share were lower than the comparative period, our performance is typically weighted towards H2, and the Board is encouraged that our operating performance is consistent with the strategic direction we set out at the start of the period.

"The market backdrop for Hercules remains compelling. The Government's 10-year national infrastructure strategy, backed by committed spend of £700bn to £750bn, continues to translate into tangible momentum across our target sectors.

"The Civil Projects division has won £14.0m of project contracts since the start of FY2026, providing a strong platform as AMP8 activity accelerates. The Advantage NRG business continues to perform well, extending our reach in the Power & Energy sector. Together, these initiatives underpin the Board's confidence in the business for the remainder of the year.

"I would like to thank our colleagues across the Group for their continued dedication and hard work, and to extend my thanks to our clients, partners and shareholders for their ongoing support and trust in Hercules."

For further information and enquiries, please contact:

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 which has been incorporated into UK law by the European Union (Withdrawal) Act 2018. 

Chairman's Statement

Executing our strategy, delivering on our pipeline

I am pleased to report that Hercules delivered another period of operational growth in the first half of FY 2026, achieving revenue of £59.2m, an increase of 8% on the prior year (H1 FY2025: £54.6m). The period was characterised by significant strategic progress across the Group as we continued to invest in the foundations required to support our next phase of growth. Alongside integrating acquisitions completed during the previous financial year, we invested heavily in major technology upgrades, including our new Pay & Bill and ERP platforms, while also managing an extended audit process. This expenditure inevitably impacted short-term profitability but position the business to operate more efficiently, scale more effectively and deliver greater long-term value for shareholders. Despite some delays to major project starts across the infrastructure sector, trading remained resilient and we continue to see substantial opportunities across our target markets.

Labour Supply

Labour supply remains the Group's core revenue driver and has seen a 5% year-on-year increase in H1 2026. Operative numbers continued their steady growth, and our scalable digital platform ensures we can meet increasing client demand efficiently. In the period, we secured new clients and completed a high level of tender activity, building a strong platform for H2 and beyond.

Nuclear energy and power transmission infrastructure represent some of the most significant long-term investment opportunities in the UK market. With substantial Government backing for new nuclear generation and major investment planned across the electricity transmission network to support energy security and the transition to net zero, the sector is entering a prolonged period of growth. Hercules is well positioned to support these programmes through our expanding labour supply, training and specialist power services capabilities. We are already supporting early-stage nuclear projects, including Sizewell C, and continue to strengthen our presence in the sector. In parallel, our Advantage NRG and Lyons Power Services businesses provide a strong platform to benefit from the increasing demand for skilled resources across transmission, distribution and wider power infrastructure projects. The Government's acquisition of the Wylfa nuclear site in North Wales further reinforces the long-term commitment to nuclear energy and provides additional future opportunities that we will continue to monitor closely.

Construction Services

The Civil Projects team has had a productive first half, winning £14.0m of project contracts and yet again gaining several new clients. Activity in the water sector, whilst the period started more slowly as the market transitions from AMP7 to AMP8, is building momentum. The AMP8 cycle represents a doubling of investment versus AMP7, and with the team actively engaged in budget pricing for clients, we are well positioned to benefit as project flow increases through H2 2026 and beyond.

The Hercules Academy has now trained over 2,500 people since its launch in January 2024. Delivery of Skills Bootcamps across several prisons has increased and partnerships with local authorities are enabling us to attract new entrants to the industry. The Academy continues to generate strong interest from clients, and I am encouraged by the progress of several collaboration discussions that are at an advanced stage.

In the period we were delighted to announce that we had acquired a 70% shareholding in Lyons Power Services Ltd (LPS), a specialist UK provider of power and energy infrastructure services. We look forward to building further cross-selling opportunities in the growing power and energy sector.

Financial Results

Revenue for the period grew by 8% to £59.2m (H1 2025: £54.6m). Gross profit increased 10% to £8.9m (H1 2025: £8.1m).

Underlying EBITDA was £1.7m (H1 2025: £2.6m). Delays in a number of large infrastructure project starts had an impact in H1 FY2026, and the employers' NIC increase had an effect on margins. Administrative expenses were also impacted by the NIC change, but most of the increase from (£5.5m to £7.2m) relates to £1.3m of expenditure associated with new acquisitions.

Cash was £2.7m as of 31 March 2026 (H1 2025: £9.8m). The cash was higher at the same point in the prior year due to the Group having completed an equity raise in late 2024 to provide funding for future acquisitions.

Interim Dividend

There will be no interim dividend in FY2026 (2025: 0.6p) as a result of our commitment to systems development and enhancements to support the continued growth of the business. The Board will keep the Company's dividend policy under review.

Outlook

The backdrop for UK infrastructure investment is the strongest it has been for a generation, and our management team is focused on converting that opportunity into profitable, controlled growth. I am proud of what our teams are delivering day in, day out across an increasingly complex and broad set of projects, and I look forward to reporting on further progress at the year end.

Henry Pitman

Non-executive Chairman

4 June 2026

Consolidated Statement of Comprehensive Income

6 Months Ended 31 March 2026

Consolidated Statement of Financial Position

31 March 2026

Consolidated Statement of Changes in equity

6 Months Ended 31 March 2026

Consolidated Statement of Cash Flow

6 Months Ended 31 March 2026

Notes

1. Notes to the Financial Information

Basis of preparation & accounting policies

The interim financial information for the six months ended 31 March 2026 is unaudited and was approved by the Board of Directors on [4] June 2026.

The interim financial statements do not include all the information required for full annual financial statements and should be read in conjunction with the financial statements for the year ended 30 September 2025.

The interim financial information for the six months ended 31 March 2026, including comparative financial information has been prepared on the basis of the accounting policies set out in the last annual report and accounts.

The preparation of the interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expense. Actual results may subsequently differ from those estimates.

In preparing the interim financial statements, the significant judgements made by management in applying the Company's accounting policies and key sources of estimation uncertainty were the same, in all material respects, as those applied to the financial statements for the year ended 30 September 2025.

Going Concern assumption

The Company meets its day to day working capital requirements through its cash balance.

Consequently, after making enquires, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis of accounting in preparing the interim financial statements.

Information extracted from the Company's 2025 Annual Report

The financial information for the year ending 30 September 2025, as set out in this report, does not constitute statutory accounts but is derived from the statutory accounts for that financial year.

The statutory accounts for the year ended 30 September 2025 were prepared under IFRS and have been delivered to the Registrar of Companies. The auditors reported on those accounts.

2. Earnings per share

The calculation of adjusted earnings per share is based upon the adjusted profit after tax for each respective period. The weighted average number of ordinary shares used in the calculation of basic earnings per share is based upon the number of ordinary shares in issue in each respective period.

3. Significant Capital Purchases

The Company acquired a 70% shareholding in Warrington-based Lyons Power Services Ltd, a specialist UK and overseas provider of power and energy infrastructure services, for a total consideration of £702,800 to be satisfied half in cash and half in ordinary shares in the capital of Hercules plc.

4. Share capital

80,585,543 ordinary shares were in issue as of 31 March 2026 (31 March 2025: 79,619,628)

5. Availability of interim results

The interim results will not be sent to shareholders but will be available at the Company's registered office at Hercules Court, Lakeside Business Park, Broadway Lane, South Cerney, Cirencester GL7 5XZ and on the Company's website: www.herculesplc.com