Further good growth in H1, in line with expectations

Hercules’ H1 trading update confirms another period of strong growth, in line with expectations. Revenue in H1’24 is expected to be over £47m, an increase of c.27% over H1’23. This represents c.50% of our FY’24 forecast (£94.7m), suggesting the Group is well on track at the half year stage.

All income streams grew, underpinned by substantial demand from the infrastructure sector, as well as the Group’s own growth initiatives. Contract momentum remains positive, and we note an encouraging trend in recent industry data.

Recent contract successes included over £5m in civil projects and the significant new framework agreement with Costain. UK Construction industry data (PMI) was also positive in April for the second month running, suggesting a more supportive environment overall.

We look forward to further details in the interims on 3^rd June and retain our Fair Value / share estimate of 55p.