UK-based Hercules Site Services has reported a revenue increase of 85% to £37m ($45.88m) in the first half of 2023 (H1 2023) against £19.9m recorded in the same period of the previous year.
In the unaudited interim results for the six months ending 31 March 2023, the labour supply company for the UK infrastructure sector saw its gross profit surge by 71% to £6.9m compared with £4m in H1 2022.
Hercules Site Services stated that the H1 2023 delivered growth in profits in line with its expectations.
H1 2023 posted an increase in the suction excavator fleet to 30 vehicles from 16 at the start of the period, as well as further considerable labour supply growth, especially on the HS2 project.
The company stated that the growth in administrative expenses over H1 2022 is expected to level off now with the delivery of the final 10 suction excavators.
Its adjusted earnings before interest, taxes, depreciation, and amortisation grew by 83% to £1.1m compared with £0.7m in H1 2022.
It declared an interim dividend of 0.6p in H1 2023, the same as in H1 2022 and stated that labour supply to HS2 Phase 1 (northern section) has grown to 400 operatives, from 180 on 31 March 2022.
It is also now supplying labour to Taylor Woodrow at the Exxon-Mobil oil refinery expansion in Fawley, near Southampton.
During the first half of this year, the company’s civil projects division secured new clients, including Amey and SGN.
The company has also completed fundraising of £1.7m to finance its growth.
Hercules Site Services CEO Brusk Korkmaz said: "We are delighted to have delivered a positive start to the year, with revenue growing by 85% and an increase in gross profit of 71% over 2022 levels, whilst we continue investing in support of further value creation in H2 2023.”
Korkmaz added: "With this strong momentum in the construction and infrastructure sectors, and a solid pipeline of new clients, we are ideally placed to maintain the levels of growth we have delivered in recent years and are on track to meet market expectations for the full year."
