UK infrastructure services group Hercules expects annual revenue to exceed £130m, following growth across construction, labour supply and power services during the financial year ended 30 September 2026.
In a trading update on 21 October, Hercules said it anticipated financial performance ahead of current market expectations for revenue, underlying EBITDA and statutory profit before tax. The statement is a management forecast ahead of completed annual reporting, not the publication of audited results.
Revenue above £130m would represent growth of approximately 7.3% from £121.2m in the previous financial year. The company cited existing market expectations of £127m in revenue, £4.1m of underlying EBITDA and a statutory pre-tax loss of £1.6m. It expects to exceed these benchmarks, although precise outcomes have not been disclosed.
The group’s operations cover Labour Supply, Construction Services and Power & Energy Services. Management said all three had made progress and that it was seeing increasing opportunities for collaboration between divisions, allowing a broader range of services to be provided to customers.
Its Civil Projects business is expected to deliver a record year, while Power & Energy activity continued expanding alongside investment in electricity infrastructure. The Labour Supply division reported stronger customer relationships and growth in professional recruitment, according to the company.
Infrastructure projects often require combinations of skilled staff, specialised equipment and construction services, sometimes delivered over long periods. A supplier able to provide several elements may gain commercial opportunities, but integration also needs careful management of costs, scheduling and accountability across business units.
The UK’s electricity network is undergoing substantial work to maintain assets and accommodate changing generation patterns. Such investment can create demand for civil engineering, technical specialists and supporting services, although the overall size of the market does not guarantee contracts for any one provider.
Construction and engineering companies face challenges in securing people with relevant skills. Delays in recruitment can affect project delivery and costs, while changes in demand can make labour utilisation more difficult. A business that supplies skilled personnel may be well positioned where customers need flexible capacity, provided its workforce can be deployed effectively.
Growth in revenue does not necessarily translate into the same percentage increase in profit. Project pricing, subcontractor expenditure, administrative overheads and how efficiently the company coordinates different operations all affect earnings. Hercules said it remained focused on discipline in costs and improvement in operating efficiency.
Cash management is another important factor. Infrastructure contractors can incur payroll, materials and equipment costs before receiving payment for completed work. Contract structure, debtor balances and milestone arrangements may therefore influence financing needs even during periods of growing revenue.
The company has been diversifying its services, reducing reliance on any one activity while creating opportunities to work with customers on multiple projects. Diversification can improve resilience, but its success depends on maintaining specialist capabilities and avoiding excessive complexity as the business expands.
Chief executive Brusk Korkmaz described the year as one of progress and said the company expected to beat current market forecasts. These comments reflect management’s assessment at the close of the financial year and should be measured against the final accounts when available.
The group’s reference market forecasts provide useful context for the announcement. Revenue expectations stood at £127m and underlying EBITDA at £4.1m, while analysts’ statutory pre-tax expectation was a £1.6m loss. Hercules has said it expects to exceed those benchmarks, but has not quantified every final result. A result ahead of a forecast loss should not automatically be reported as a pre-tax profit until the company provides the actual figure, particularly when underlying and statutory measures are not equivalent.
Looking ahead, Hercules expects further opportunities across the UK’s essential infrastructure markets. Investors and customers will be able to assess the strength of the performance more fully once the group reports audited revenue, profitability and cash flow.
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