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Nice and unique bike. It's one of those 'combination' pieces from near the time when Hercules was consolidated with Raleigh. The rear drops look like Birmingham production, and the badge certainly is so. You're right- those lugs are nice. It really is a high-end piece for post-consolidation Hercules.
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I've had a theory for awhile that, at least initially, Phillips and Hercules were planned to be higher-end bicycles on a par with Raleigh production and not low-budget. Those two brands had long-time recognition as quality brands and usually on a par with Raleigh in quality. That's just a theory, of course, but it seems to me the combination bikes were made to a higher specification than the later, low-budget Hercules and Phillips bikes.