Hercules PLC: Powering Britain
The UK stands on the cusp of an unprecedented infrastructure revolution. With governmental commitments indicating significant investment (plans previously cited at £700bn-£750bn), the nation is poised to transform its transport networks, energy systems, and digital infrastructure.
This undertaking will not only require capital but also a large, skilled workforce that can adapt to the nation’s current needs. Enter Hercules PLC.
As Hercules Founder and CEO Brusk Korkmaz notes, energy self-sufficiency is a major driving force, motivating projects such as the Sizewell C nuclear plant, numerous renewable and offshore energy initiatives, and a doubling of the pylons required for National Grid distribution.
Add to this the £7bn Lower Thames Crossing, HS2, and the proposed third runway at Heathrow, and the critical need becomes clear: people to build them.
Founded in 2008 by CEO Brusk Korkmaz – a civil engineer who identified a gap for quality, local labour supply after nearly a decade working for major construction firms – the company has undergone remarkable growth.”It’s a more sustainable approach to find local people for local projects.”
Korkmaz states. “There’s less attrition, they have to travel less and they tend to be happier employees… it allows us the chance to upskill and cross-skill and create new employment opportunities for communities close to those projects.”
The task ahead for the UK is a large one. Crumbling infrastructure, including roads, rail, water networks, and airport links, has either been slow to change or neglected over the last decade. Nuclear power options that other countries, such as France, have embraced have been slow to materialise here.
Their clients trust them to deliver consistently and at scale, a trust earned through a proven track record and relationships built assiduously by Korkmaz since the company’s inception.
HS2 Phase 1 (North) requires a substantial amount of labour and by March 2025 Hercules currently provides 650+ operatives to this area of the project, up from 400 in 2023.
The Sizewell C Nuclear plant marked the company’s first entry into the nuclear industry and has adopted a workflow expected to span 20 years. The estimates of this cost, upwards of £30bn, mean that this contract is another example of consistent cash flow and evidence of reliability for government work.
Water regulator Ofwat has approved England and Wales’ water companies’ combined £104bn investment plans for the eighth asset management period (AMP8), between 2025 and 2030. This decision marks a significant shift in the scale of investment in the sector, nearly quadrupling expenditure compared to previous years.
From sales of just £7m turnover and a dozen employees around ten years ago, Hercules celebrated a record turnover of £102m in 2024 with 1200+ employees.
The revenue from continuing operations has increased by 28 per cent over the previous year from £79.8m in 2023. The gross margin for the year was approximately 18.2 per cent.
UK government spending on construction and infrastructure sectors over the next 10 years is expected to range between £700bn and £750bn. Hercules is well-positioned to take a piece of this capital expenditure.
What sets Hercules apart is its multifaceted, tech-driven approach to labour supply.
The company leverages proprietary digital platforms – ‘Hercules Construction Jobs’ and ‘OneTeam’ to support the demands of the industry.
Developed over three and a half years and continually refined, the app now boasts 17,000 users, streamlining the traditionally frantic process of sourcing workers. The app and website allow Hercules to connect local workers with local projects efficiently, enabling proactive upskilling and cross-skilling.
This means profound impact, faster hiring and the correct workforce means less churn, less downtime on projects and most importantly, efficiency in workflow resulting in projects delivered on time, in budget and more money made.
Ultimately, productivity and tracking between the workforce management and workers alike means a clearer view of what needs to be done. Clients receive a more agile and flexible workforce, which reduces costs and administrative workloads.
Hercules plans to build more academies, such as the Hercules Construction Academy in Nuneaton, strategically placed near the UK’s significant projects, to help meet the demand for skilled workers.
As CEO Brusk Korkmaz commented, the Academy is “helping to upskill and cross-skill workers, and providing a platform to bring new people to the industry,” offering flexible training adapted to the changing needs of the digital age.
This also taps into the growing interest in construction careers among young people.
Looking ahead, Hercules has laid out its “The Road to 500” growth plan with the aim of hitting £500m in turnover. This will be fuelled by organic growth and a focused acquisition strategy – “We are actively acquiring,” confirms Korkmaz, “The aim is to strategically acquire relevant businesses over the next five years… We expect to get to £300m with acquisitions” as part of the overall £500m ambition.
This growth is underpinned by strategic financial management. Hercules listed on the London Stock Exchange AIM Market in 2022 specifically to build the investment platform required for expansion.
In September 2024, it successfully raised £8m from institutional investors to support the acquisition drive. Furthermore, the strategic sale of its non-core Suction Excavator business for £2.4m in cash reduced debt and lease liabilities by approximately £9m, sharpening the company’s focus on its core labour supply operations.
Growth plans also include exploring complementary sectors like power & energy, water, rail, and aviation.
For investors looking to participate in the UK’s infrastructure growth story, Hercules PLC (AIM: HERC) offers a unique and compelling opportunity.
“Construction and infrastructure are exciting industries to be in,” concludes Korkmaz, “and there are so many opportunities coming up for the future workforce, for the long-term.”