Hercules (AIM:HERC), the UK construction and infrastructure services group, reported record first-half revenue of £59.2m for the six months to 31 March, up 8% from £54.6m in H1 2025.
Underlying EBITDA fell to £1.7m (H1 2025: £2.6m), underlying pre-tax profit to £0.6m (H1 2025: £1.7m) and underlying EPS to 0.67p (H1 2025: 2.11p), while cash at period end was £2.7m (H1 2025: £9.8m) and the board will not pay an interim dividend (2025: 0.6p).
"The market backdrop for Hercules remains compelling and together with our contract wins gives the Board confidence in the business for the remainder of the year," said Brusk Korkmaz, Chief Executive Officer.
Management said the profit compression reflected planned investment in new Pay & Bill and ERP systems, acquisition and integration costs and an extended FY2025 audit, which it treats as non-recurring spend to create a scalable platform.
Operationally, labour supply revenue rose 5% year-on-year and operative numbers grew, Civil Projects has won £14m of contracts since the start of FY2026, and acquisitions including Advantage NRG and a 70% stake in Lyons Power Services strengthened the group's power and energy capability.
The board said it will keep the dividend policy under review as it focuses on converting pipeline opportunities into profitable, controlled growth.
