Hercules added to Balfour Beatty’s Preferred Supplier List for Power Transmission & Distribution

Hercules plc (AIM: HERC), a technology-enabled labour supply business serving the UK infrastructure and construction sectors, has announced it has been added to Balfour Beatty’s Preferred Supplier List (PSL) for Power Transmission & Distribution work. The move strengthens a relationship that already spans major UK infrastructure activity and positions Hercules to support some of the country’s most ambitious power network programmes with specialist labour across substations, cabling, and civils.

Alongside the supplier-list milestone, the company has also indicated that its final results for the year ended 30 September 2025 are now expected in March 2026 rather than earlier, with the timing linked to additional audit work following significant acquisition activity during 2025.

What happened: the announcement in plain English

In simple terms, Hercules has been “approved” by Balfour Beatty’s Power Transmission & Distribution division as a trusted, go-to labour supplier under its PSL system. That matters because PSL status typically means a contractor is more likely to be invited to bid, called first when projects ramp up, and kept in the loop for longer-term workforce planning.

Hercules says it will deliver specialist support in three main areas:

• Substations (specialist labour that helps deliver and maintain key grid connection points)
• Cable works (labour supporting installation and related site tasks)
• Civils (groundworks and enabling works that make power projects possible)

From Balfour Beatty’s perspective, the UK has major transmission and distribution upgrades underway, and reliable labour partners can reduce delays, smooth site mobilisation, and help maintain safety and quality standards.

Why this matters for Hercules (and why investors notice)

For a labour supply group operating in infrastructure, long-term relationships with tier-one contractors are a big deal. They can improve visibility of future demand, reduce the cost of winning work, and create repeat business where performance builds trust.

In this case, Hercules specifically highlights that Balfour Beatty is involved in some of the UK’s most ambitious power transmission and distribution projects. That implies the PSL placement could be more than a “nice badge”—it may become a practical channel for Hercules to deploy teams across multi-year programmes as the grid expands and modernises.

It also supports Hercules’ public narrative: it is not just supplying general labour; it is building specialist capability in power and energy infrastructure and aligning itself with where national investment is heading.

The work scope: what “Power Transmission & Distribution” actually involves

Power Transmission & Distribution (often shortened to T&D) is the backbone of electricity delivery:

• Transmission moves large amounts of electricity over long distances (high-voltage lines and major substations).
• Distribution takes power from the transmission network and delivers it to homes, businesses, and public services (local networks and connections).

Projects in this space can include new substations, upgrades to existing substations, new cable routes, reinforcement works, enabling civils, and maintenance or refurbishment programmes. They often need carefully coordinated labour because sites can be complex, heavily regulated, and schedule-sensitive—especially when upgrades must be delivered while keeping the network stable.

That’s why specialist labour pools matter. The more experienced the teams are, the smoother the mobilisation tends to be—less rework, fewer avoidable delays, and better compliance on safety-critical sites.

How Hercules built momentum in energy: two acquisitions that changed the story

Hercules links this PSL milestone directly to its expansion strategy in the power and energy sector, pointing to two key acquisitions in 2025.

1) Advantage NRG (acquired June 2025)

Hercules describes Advantage NRG as its largest acquisition to date at the time and notes that the business supplies linesmen for construction and maintenance of overhead electrical transmission lines. This is a specialist workforce segment—one that tends to be in steady demand as transmission networks are reinforced, extended, and maintained.

In plain terms: by acquiring Advantage NRG, Hercules didn’t just add headcount. It added a capability set that is directly aligned to high-voltage overhead line work—exactly the kind of labour profile needed when the UK is pushing for long-term network upgrades.

2) Lyons Power Services (70% acquired October 2025)

Hercules also says it increased its presence in October 2025 by buying a 70% interest in Warrington-based Lyons Power Services Ltd, described as a specialist provider of power and energy infrastructure services in the UK and overseas, including commissioning engineers to the transmission and distribution network.

This is significant because commissioning capability—testing, verifying, and supporting the safe operational handover of power assets—often sits near the sharp end of project delivery. It’s also a space where experience and competence are critical, because the consequences of error are high.

Taken together, the acquisitions suggest a deliberate strategy: build a broader suite of specialist services and labour categories so Hercules can support more phases of the T&D project lifecycle, from civils and cable works through to overhead lines and commissioning.

What Hercules’ CEO said—and what it signals

Hercules CEO Brusk Korkmaz described the PSL placement as “another milestone” in the company’s expansion in the UK energy infrastructure market, saying it reflects both the working relationship with Balfour Beatty and Hercules’ specialist labour capability across substations, cabling, and civils.

He also pointed to a practical opportunity: the ability to deploy the expertise of Advantage NRG into this expanding pipeline. That line matters because it ties the acquisition strategy to real deployment routes—turning corporate activity into operational output.

Finally, the CEO referenced expectations of “significant investment” continuing across UK energy infrastructure to respond to rising demand and long-term network requirements over the next decade. Whether you’re an investor, a contractor, or someone tracking UK infrastructure, this frames the PSL win not as a one-off contract announcement, but as part of a wider market trend.

The delayed results: what we know and what it could mean

Separately from the PSL update, Hercules has said it expects to announce its FY25 accounts (for the year ended 30 September 2025) in March 2026 rather than earlier. The reason given is that while the audit is “well advanced,” additional audit work is needed due to the company’s extensive acquisition activity in 2025.

It’s worth keeping the framing practical:

• Multiple acquisitions can complicate audits because auditors must review purchase accounting, consolidation, valuation assumptions, and controls across newly acquired entities.
• A timing change is not automatically a performance signal; it can simply reflect workload and complexity—especially after a busy year of deals.
• But timing still matters to markets because it can affect investor expectations, reporting calendars, and short-term sentiment.

For stakeholders, the main takeaway is straightforward: Hercules is expanding quickly, and the administrative and reporting side is catching up with the pace of change.

Why Balfour Beatty PSL status is strategically valuable

Preferred supplier lists exist for a reason: major contractors want dependable partners who can deliver safely, consistently, and at scale. PSL status can be valuable in several ways:

1) More predictable access to workstreams

When frameworks and programmes ramp up, contractors often turn first to trusted suppliers already inside their procurement systems. Being on the PSL can reduce friction in awarding packages and mobilising labour quickly.

2) Better planning and collaboration

Preferred suppliers may get earlier sight of upcoming work, allowing them to recruit, train, and schedule more effectively. That can improve delivery outcomes for both sides.

3) A credibility signal for other clients

Winning PSL status with a tier-one contractor can be used as proof of capability when approaching other customers, because it implies the supplier has met strict onboarding and compliance standards.

4) A platform for broader service deployment

As Hercules builds capability through acquisitions, PSL access can become a channel to introduce and expand those capabilities across real projects—particularly if performance is strong and the relationship deepens over time.

How this fits the wider UK energy infrastructure cycle

Across the UK, electricity demand patterns are changing, and grid infrastructure must adapt. Network upgrades can be driven by a mix of factors, including:

• electrification trends (more electric transport and electrified heating over time)
• renewables integration (connecting new generation sources and balancing networks)
• asset renewal (replacing ageing infrastructure and improving reliability)
• resilience and capacity improvements (preparing for long-term demand and operational requirements)

This kind of investment typically creates sustained demand for specialist skills and flexible labour resourcing. That’s one reason labour suppliers that can prove competence—especially in safety-critical environments—may find themselves well positioned during multi-year upgrade cycles.

Hercules is clearly aiming to be one of those providers, and the PSL placement supports that positioning.

Operational implications: what could happen next

While PSL status does not automatically guarantee revenue (projects still need to be won and delivered), it can change the “starting position” for a supplier. Here are realistic next-step scenarios that often follow a PSL milestone:

• Increased call-offs for specialist labour on specific sites or packages as programme activity rises.
• Broader geographic deployment if the contractor’s projects are spread across regions.
• Longer planning horizons if the contractor shares forward-looking workforce requirements.
• Cross-selling of capabilities where the supplier can offer additional skill sets (for example, commissioning engineers, overhead line specialists, or combined civils-and-cable teams).

For Hercules, the operational challenge is to scale while maintaining quality: strong compliance, good retention, and consistent site performance. PSL status can open doors—but staying on the list and growing share usually depends on delivery.

Risk factors to watch (in a balanced, practical way)

No infrastructure story is complete without acknowledging the reality of delivery risk. Some considerations stakeholders often watch in cases like this include:

• Integration risk: Acquisitions can unlock capability, but integrating systems, culture, and processes takes time.
• Labour market pressure: Specialist skills can be scarce; competition for qualified workers may affect costs.
• Project timing and procurement cycles: Even with PSL status, project schedules can move due to permitting, supply chain constraints, or client decisions.
• Reporting confidence: Delayed results can raise questions even when the reason is simply complexity; clear communication helps maintain trust.

These points don’t cancel out the positive news—they simply reflect the realities of scaling in a demanding, safety-critical segment of infrastructure.

Frequently Asked Questions (FAQs)

1) What is a Preferred Supplier List (PSL)?

A PSL is a vetted list of suppliers approved by a major customer (like a tier-one contractor) to provide certain goods or services. Being on the list typically indicates the supplier has met procurement, compliance, and capability standards.

2) What did Hercules announce about Balfour Beatty?

Hercules announced it has been added to Balfour Beatty’s Preferred Supplier List for Power Transmission & Distribution work, and it expects to provide specialist substation, cable, and civils labour support.

3) Does PSL status mean Hercules has won a contract?

Not necessarily a single fixed contract. PSL status usually means the supplier is approved to provide services and may be invited to support projects, often through call-offs, packages, or programme needs. Actual work depends on project demand and awards.

4) Why did Hercules delay its final results?

Hercules said the audit is well advanced, but extra audit work is required due to extensive acquisition activity in 2025. As a result, it now expects to publish the FY25 accounts in March 2026.

5) What were Hercules’ key acquisitions in the power sector?

Hercules pointed to its June 2025 acquisition of Advantage NRG (supplying linesmen for overhead electrical transmission lines) and its October 2025 acquisition of a 70% interest in Lyons Power Services (power and energy infrastructure services, including commissioning engineers).

6) Why is UK power transmission and distribution work growing?

Power network upgrades tend to increase when systems must meet rising demand, integrate new generation sources, and modernise ageing assets. Companies operating in this space often expect sustained investment as networks adapt to long-term requirements.

Conclusion: a meaningful step in Hercules’ power-market expansion

Hercules’ addition to Balfour Beatty’s Preferred Supplier List for Power Transmission & Distribution is a clear strategic milestone: it strengthens a key tier-one relationship and aligns with the company’s push into higher-value, specialist energy infrastructure work. Backed by targeted acquisitions—Advantage NRG and Lyons Power Services—Hercules is building a broader capability set that can support multiple phases of major power programmes.

At the same time, the delayed final results underline the practical complexity of rapid expansion. If the company continues to communicate clearly and execute well operationally, PSL status could become an important platform for sustained growth in a market that is widely expected to see ongoing investment over the coming decade.

Sources: Company announcement via Investegate and reporting from Construction Enquirer.

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