Hercules plc (LON:HERC) Chief Executive Officer Brusk Korkmaz and Chief Financial Officer Paul Wheatcroft caught up with DirectorsTalk to discuss the launch of the company’s dedicated Power & Energy Services division, its growing contracted workload and the opportunities arising from long-term investment in the UK electricity network.
Q1: Brusk, you’ve announced the launch of a dedicated Power & Energy Services division. Can you just explain for us what that means for Hercules?
A1: This is an important step forward for Hercules. Power and Energy is already one of the fastest-growing parts of our business. Creating a separate division gives us dedicated leadership, resources, and clear focus. It also puts Hercules in a strong position to benefit from the major investments taking place across the UK electricity network. The launch shows our confidence in the market and in the strong platform we have built since acquiring Advantage NRG.
Q2: So, why was now the right time to create a separate division, do you think?
A2: Because the business has grown to a size where a separate division makes sense. Advantage NRG has already secured around £21 million of contracted work for the 2026 financial year and demand from our customers continues to increase.
The UK is entering a long-term period of investment in upgrading the electricity network, supporting electrification, and improving energy security. So, creating the division now allows us to invest, grow and prepare ahead of this increasing demand.
Q3: Paul, investors will probably have noticed that Power and Energy will now be reported separately in the group’s financial results. Why is that important?
A3: Well, we’re always trying to improve visibility and transparency for shareholders and by separating out this new division’s results, it will help shareholders, both current and prospective, to see the performance and the growth trajectory of the new division more clearly.
Power and Energy is increasingly going to be key to the overall group performance, and this will help demonstrate that and the value being created within the group, as well as improving internal accountability.
Q4: Marcus White has been appointed Managing Director of the new division. What made him the right person for the role?
A4: Marcus has nearly 10 years of experience within Advantage NRG, and he has played an important role in growing the business. He has helped to build strong customer relationships and expand our operational capabilities. He also understands the market really well, and he also understands our clients and the challenges involved in delivering these projects.
His appointment provides continuity and allows us to build on the strong progress already made. It also shows our commitment to investing in experience and specialist leadership.
Q5: Paul, looking ahead, what should shareholders be watching for from Hercules’ Power & Energy Services division over the next 12 months?
A5: We are planning for an expansion of operational and service capabilities and continued growth in contracted work and customer relationships and in particular, progress against major UK transmission and distribution programmes.
Overall, shareholders should expect to see evidence that the division is becoming an increasingly significant contributor to group growth and profitability.
