Hercules PLC

First-pass take

Hercules is a labour supply business for UK infrastructure (HS2, water, rail) with strong 28% revenue growth, but zero AI exposure: no AI products, no ML applications, no AI customer tailwinds. Gross margins compressed 290bps (17.6%→14.7%) despite growth, driven by labour cost inflation; admin cost control is the only leverage signal. No share price data in document. Low net debt (£0.9m) and 40+ diversified clients against government-backed infrastructure spending provide downside protection.