Hercules revenue tops £120m for first time as shares suspension lifted

Construction labour supply group Hercules has reported record annual revenue of £121.2 million for FY2025, up 19 per cent from £101.9 million last year, as trading in its AIM-listed shares resumed following a suspension linked to audit delays.

For the year ended 31 September 2025, EBITDA rose 34 per cent to £6.4 million, while underlying pre-tax profit – highlighted to provide a “more meaningful measure and year-on-year comparison of profitability” – increased to £4 million from £2.6 million in 2024.

Growth was attributed to “strong” demand across its labour supply and construction services divisions, alongside acquisitions including Advantage NRG, Quality Transport Training, and Lyons Power Services post year-end. 

However, “rapid” expansion and acquisition activity are said to have placed “strains” on its systems and controls, prompting a detailed review during the FY2025 audit process.

The company, whose shares were suspended after delaying its results for a second time in March, said concerns were identified in supplier onboarding and internal control procedures relating to a small number of training and consultancy providers.

This resulted in specialist accountants and lawyers being appointed to review processes and strengthen controls after auditors found “audit evidence was, at times, inconsistent or incomplete”. 

The AIM-listed company said management spent significant time and cost remediating the issues after year-end, but was now satisfied the expenditure had been “properly incurred”.

Hercules said most remediation work is now complete, with remaining measures expected to be finalised by September 2026.

Chief executive Brusk Korkmaz added: “Going forward we are confident that we now have in place robust procedures across the group to handle our future needs as we drive the business forward.”

Notwithstanding, the group deployed 1,230 workers during the year, serving 65 clients across 540 project locations, up from 40 clients and 300 locations in 2024.

For the six months to 31 March 2026, unaudited revenue also increased to £59.2 million from £54.6 million.

Looking ahead, Korkmaz said Hercules had strengthened its market position despite delays to some infrastructure projects and remained well placed to benefit from long-term UK infrastructure investment, particularly across nuclear, renewables, power and energy, and water.

He highlighted the £725 billion government infrastructure pipeline over the coming decade, saying the group had a “strengthened market position and platform” to capture opportunities ahead.

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