15 October 2025

Hercules plc

("Hercules", the "Company" or the "Group")

Acquisition of Majority Stake in Lyons Power Services Ltd

Hercules plc (AIM: HERC), a leading technology-enabled labour supply company for the UK infrastructure and construction sectors, is pleased to announce that it has acquired a 70% shareholding in Warrington-based Lyons Power Services Ltd ("Lyons Power Services" or "LPS"), a specialist UK and overseas provider of power and energy infrastructure services.

The transaction is for a total consideration of £702,800 to be satisfied half in cash and half in ordinary shares in the capital of Hercules (the "Acquisition"). The remaining 30% shareholding in LPS will continue to be held by the existing owner manager of LPS, who will remain actively involved in driving LPS's future growth.

Strategic Rationale

·      The Acquisition aligns with Hercules' growth strategy by expanding its service offering into complementary and high-growth infrastructure sectors.

·      The move, which follows the acquisition of overhead linesmen supplier Advantage NRG Ltd in June this year, bolsters Hercules' national footprint and widens its already strong client base in the energy and power sectors.

·      Hercules will support LPS in scaling its operations and pursuing further opportunities within the power services market.

The Power and Energy opportunity

The UK is embarking on a major upgrade of its electrical infrastructure to meet rising energy demand. National Grid proposals include £58 billion of investment focused on extending and modernising the country's transmission and distribution networks to deliver sustainable and reliable power across the UK.

To capitalise on this, in June 2025, Hercules entered the power and energy sector with its largest acquisition to date, Advantage NRG Ltd ("Advantage NRG").

Advantage NRG supplies linesmen for the construction and maintenance of overhead electrical transmission lines. Hercules expects demand for skilled operatives, particularly overhead linesmen, to increase substantially.

The acquisition of LPS will further cement Hercules' position in this sector.

Financial Details

•          The consideration comprises £351,400 in cash and £351,400 through the issue of 965,915 ordinary shares at a price of 36.38 pence per ordinary share (the "Consideration Shares"), representing the 5-day volume weighted average price ending 13 October. The cash element of the consideration is financed through the Company's existing cash resources.

•          The Consideration Shares are subject to a 12-month lock-in agreement followed by a 12-month orderly market agreement.

•          The vendor of Lyons Power Services (the "Vendor") can sell the remaining 30% minority interest in LPS to Hercules, subject to the terms of the agreement outlined below (the "Partnership Agreement").

•          In the year ending 31 January 2025, Lyons Power Services generated revenues of £1,387,000 and profits before tax of £287,000. The assets subject to the Acquisition had a net asset value of £245,000.

Further details about LPS

Lyons Power Services operates within the power and energy infrastructure sector, providing specialist services to clients, which include manufacturers such as Siemens and DNOs (Distribution Network Operators) like SSE, within the transmission, distribution, and energy markets. Its client base includes some Europe's largest electrical and energy infrastructure companies.

LPS offers a range of services, such as installation and commissioning of switchgear and substation systems from 415V to 132kV, including Factory Approval Testing, Site Acceptance Testing & Entry into Service, maintenance and repair of switchgear from 415V to 33kV and Senior Authorised Persons operating private networks up to 33kV.

Brusk Korkmaz, CEO of Hercules, said: "We are pleased to welcome Lyons Power Services into the Hercules Group. This Acquisition strengthens our presence in the critical power and energy infrastructure sector, providing both diversification and long-term growth opportunities.

"LPS and its expertise in the booming power and energy sector will dovetail nicely with our previous acquisition, Advantage NRG. The partnership structure ensures that we retain the entrepreneurial drive of the LPS management team, while leveraging Hercules' resources to scale the business further."

David Lyons, Managing Director of Lyons Power Services, added: "Hercules' scale, reputation, and client relationships will allow us to accelerate our growth while continuing to deliver the high-quality services our clients expect. We believe our vision for the future is aligned with that of the Hercules management team at what is an exciting time for the infrastructure sector."

Partnership Agreement

Under the terms of the Partnership Agreement, the Vendor can sell his remaining 30% minority interest to Hercules, between the seventh and tenth anniversary of completion, at a consideration based on a multiple of 4x the average EBITDA achieved by Lyons Power Services in the two years preceding the minority interest sale. The consideration payable by Hercules for the remaining 30% interest will be satisfied 50/50 by cash and ordinary shares in the Company. Following the tenth anniversary of completion, Hercules has the right to acquire any remaining minority interest held by the Vendor, based on the same calculation.

Application for Admission and Total Voting Rights

Application has been made for admission of the Consideration Shares to trading on AIM ("Admission"). It is expected that Admission will be on or around 17 October 2025. The Consideration Shares will rank pari passu in all respects with the Company's existing ordinary shares. Following Admission, the total number of ordinary shares in the Company in issue will be 80,585,543. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company under the FCA's Disclosure and Transparency Rules.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 which has been incorporated into UK law by the European Union (Withdrawal) Act 2018.

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