REG - Hercules Site Svcs - Admission to Trading and First Day of Dealings

Herc HoldingsAnnouncement

04/02/2022 08:00

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RNS Number : 6570A  Hercules Site Services PLC  04 February 2022

 

THIS ANNOUNCEMENT, INCLUDING THE INFORMATION CONTAINED IN IT IS RESTRICTED AND
IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN
WHOLE OR IN PART, IN OR INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA,
JAPAN, OR THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH SUCH
PUBLICATION, RELEASE OR DISTRIBUTION WOULD BE UNLAWFUL. PLEASE SEE THE
IMPORTANT NOTICE WITHIN THIS ANNOUNCEMENT.

 

THIS ANNOUNCEMENT DOES NOT CONSTITUTE OR FORM A PART OF ANY OFFER OR
SOLICITATION TO PURCHASE OR SUBSCRIBE FOR, OR OTHERWISE INVEST IN, SHARES TO
ANY PERSON IN AUSTRALIA, CANADA, JAPAN, SOUTH AFRICA OR THE UNITED STATES
(INCLUDING ITS TERRITORIES AND POSSESSIONS, ANY STATE OF THE UNITED STATES AND
THE DISTRICT OF COLUMBIA) OR IN ANY JURISDICTION TO WHOM OR IN WHICH SUCH
OFFER OR SOLICITATION IS UNLAWFUL. THE OFFER AND SALE OF ORDINARY SHARES
REFERRED TO HEREIN HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE US
SECURITIES ACT OR UNDER THE APPLICABLE SECURITIES LAWS OF AUSTRALIA, CANADA,
JAPAN OR SOUTH AFRICA. THE ORDINARY SHARES REFERRED TO HEREIN MAY NOT BE
OFFERED OR SOLD IN AUSTRALIA, CANADA, JAPAN OR SOUTH AFRICA OR TO, OR FOR THE
ACCOUNT OR BENEFIT OF, ANY NATIONAL, RESIDENT OR CITIZEN OF AUSTRALIA, CANADA,
JAPAN OR SOUTH AFRICA. THERE HAS BEEN AND WILL BE NO PUBLIC OFFER OF THE
ORDINARY SHARES IN AUSTRALIA, CANADA, JAPAN, SOUTH AFRICA OR THE UNITED
STATES.

 

INVESTORS SHOULD NOT SUBSCRIBE FOR OR PURCHASE ANY SECURITIES REFERRED TO IN
THIS ANNOUNCEMENT EXCEPT ON THE BASIS OF INFORMATION IN THE ADMISSION DOCUMENT
PUBLISHED BY HERCULES SITE SERVICES PLC IN CONNECTION WITH THE PROPOSED
ADMISSION OF ITS ORDINARY SHARES TO TRADING ON AIM WHICH IS AVAILABLE ON THE
COMPANY'S WEBSITE AT WWW.HERCULES-CONSTRUCTION.CO.UK SUBJECT TO CERTAIN
ACCESS RESTRICTIONS.

 

 

4 February 2022

 

Hercules Site Services plc

("Hercules" or "the Company")

 

Admission to Trading and First Day of Dealings

 

Hercules Site Services plc, a leading technology enabled labour supply company
for the UK infrastructure sector, is pleased to announce the admission of its
ordinary shares ("Ordinary Shares") to trading on the AIM market of the London
Stock Exchange at 8.00 a.m. today under the ticker HERC ("Admission"). The
ISIN of the Ordinary Shares is GB00BPVBVZ82.

 

The Admission follows a subscription, institutional placing and retail offer
via PrimaryBid which raised in aggregate £8 million at a placing price of
50.5 pence per share. £4 million (gross) has been raised for the Company and
£4m for the existing shareholder from the sale of part of its interest in the
Company. The funds raised for the Company will be used to rapidly deliver on
the significant demand Hercules is experiencing for its diverse range of
services across the UK infrastructure sector, including to scale-up its
operations to supply labour to the northern section of the HS2 rail project
from London to Birmingham (Phase One). Upon Admission, Hercules will have a
market capitalisation of approximately £29.6 million at the placing price.

 

Hercules Highlights:

 

·    Hercules is a profitable and rapidly-growing labour supply company
operating in the UK infrastructure sector with a strong pipeline of projects.

 

·    Founded in 2008, Hercules' agile, innovative, digital-first approach
and wide range of services has helped attract the Company's blue-chip client
base including Balfour Beatty, Skanska, Costain and Kier.

 

·    The Company has significant cross-selling capabilities. As well as
labour supply, it provides complementary project delivery services and
specialist plant hire (suction excavators) which can increase the total value
from client relationships.

 

·    Hercules has a sustained track record of revenue growth from £9.7
million in FY 2015 to £30.7 million in FY 2019 and has experienced a strong
rebound following Covid-19 growing to £14.0 million in H1 FY 2021.

 

·    Hercules has a compelling, growing market opportunity: nearly £650bn
of investment is planned on UK infrastructure and construction projects over
the next 10 years. This, combined with the current labour deficit, has
resulted in workforce supply being given much higher importance on the
industry's agenda.

 

·    The Directors believe Hercules is well-placed to gain market share as
it is proven to attract a loyal workforce and blue-chip client base due to its
award-winning app, digital capabilities and training/health & safety
focus, which the Directors believe differentiates it from the competition.

 

·    Hercules has a defined strategy with multiple growth opportunities,
including organic expansion and market penetration of its existing businesses,
the continued development of its data and analytics platform, and the
integration of targeted acquisitions in what is a highly fragmented sector.

 

·    The Board intends to adopt a progressive dividend policy for the
Company from Admission, which will seek to maximise shareholder value and
reflect the Company's strong earnings potential and cash flow characteristics.

 

·    SP Angel Corporate Finance LLP is acting as Nominated Adviser and
Broker to the Company in relation to the placing and Admission.

 

Hercules CEO Brusk Korkmaz said: "Over the past 12 months we have achieved
significant momentum and milestone contract wins, which has culminated in
today's successful AIM listing. We hope to provide investors with exposure to
both income and growth, and are delighted to welcome our new shareholders to
the Hercules register.

 

"We have built Hercules to become a leading labour supply business over the
past 13 years and our digital first approach has helped us attract major
construction businesses to our client portfolio. Our proven and rapid delivery
track-record has led to our work with our long-standing partner, Balfour
Beatty, on HS2; this is expected to significantly step-change our growth in
the next 12 months and beyond.

 

"This IPO will enable Hercules to capitalise on the rapidly growing
opportunity in the labour supply market; the demand for skilled labour is
higher than ever before due to the multi-billion infrastructure commitments
made by the UK government and we are experiencing unprecedented demand for our
services.

 

"Therefore, having identified multiple exciting growth opportunities, and
proven the fast-growth and profitable nature of our business model, we believe
that we are well-positioned to gain market share through organic expansion,
cross-selling and acquisition opportunities."

 

Enquiries

 

 Hercules Site Services plc                                            c/o SEC Newgate

 Brusk Korkmaz (CEO)

 Paul Wheatcroft (CFO)

 SP Angel (Nominated Adviser and Broker)                               +44 (0) 20 3470 0470

 Matthew Johnson / Adam Cowl / Harry Davies-Ball (Corporate Finance)

 Grant Barker / Rob Rees (Sales and Broking)

 SEC Newgate (Financial PR)                                            +44 (0) 20 3757 6882

 Elisabeth Cowell / Ian Silvera / Max Richardson                       Hercules@secnewgate.co.uk

 

 

The Company's Admission Document is available
at: www.hercules-construction.co.uk.

 

IMPORTANT NOTICES

 

The information contained in this announcement is for background purposes only
and does not purport to be full or complete. No reliance may be placed by any
person for any purpose on the information contained in this announcement or
its accuracy, fairness or completeness.

In the United Kingdom, this announcement is being distributed only to, and is
directed only at, persons who: (A) (i) are "investment professionals"
specified in Article 19(5) of the Financial Services and Markets Act
(Financial Promotion) Order 2005 (the "Order") and/or (ii) fall within Article
49(2)(a) to (d) of the Order (and only where the conditions contained in those
Articles have been, or will at the relevant time be, satisfied); and (B) are
"qualified investors" within the meaning of Article 2(e) of the Prospectus
Regulation (Regulation (EU) 2017/1129) as it forms part of UK law by virtue of
the European Union (Withdrawal) Act 2018 (all such persons together being
referred to as "Relevant Persons"). In the European Economic Area (the "EEA"),
this announcement is addressed only to and directed only at, persons in member
states who are "qualified investors" within the meaning of Article 2(e) of the
Prospectus Regulation (Regulation ((EU) 2017/1129) ("Qualified Investors").
This announcement must not be acted on or relied on (i) in the United Kingdom,
by persons who are not Relevant Persons, and (ii) in any member state of the
EEA, by persons who are not Qualified Investors. Any investment or investment
activity to which this announcement relates is available only to: (i) in the
United Kingdom, Relevant Persons; and (ii) in any member state of the EEA,
Qualified Investors, and will be engaged in only with such persons.

This announcement may include statements that are, or may be deemed to be,
"forward-looking statements". These forward-looking statements may be
identified by the use of forward-looking terminology, including the terms
"believes", "estimates", "plans", "projects", "anticipates", "expects",
"intends", "may", "will" or "should" or, in each case, their negative or other
variations or comparable terminology, or by discussions of strategy, plans,
objectives, goals, future events or intentions. These statements reflect
beliefs of the Directors (including based on their expectations arising from
pursuit of the Company's strategy) as well as assumptions made by the
Directors and information currently available to them. Although the Directors
consider that these beliefs and assumptions are reasonable, by their nature,
forward-looking statements involve known and unknown risks, uncertainties,
assumptions and other factors that may cause Hercules actual financial
condition, results of operations, cash flows, liquidity or prospects to be
materially different from any future such metric expressed or implied by such
statements. Past performance cannot be relied upon as a guide to future
performance and should not be taken as a representation that trends or
activities underlying past performance will continue in the future.
Forward-looking statements speak only as of the date they are made. Forward
looking statements may and often do differ materially from actual results. No
representation is made or will be made that any forward-looking statements
will come to pass or prove to be correct.

Any subscription or purchase of Ordinary Shares should be made solely on the
basis of information contained in the Admission Document. The information in
this announcement is subject to change. Before subscribing for or purchasing
any Ordinary Shares, persons viewing this announcement should ensure that they
fully understand and accept the risks which are set out in the Admission
Document. No reliance may be placed for any purpose on the information
contained in this announcement or its accuracy or completeness. Neither this
announcement, nor anything contained herein, shall form the basis of or
constitute any offer or invitation to sell or issue, or any solicitation of
any offer to purchase or subscribe for any Ordinary Shares or any other
securities nor shall it (or any part of it) or the fact of its distribution,
form the basis of, or be relied on in connection with, any contract therefor.

You should not base any financial decision on this announcement. Acquiring
investments to which this announcement relates may expose an investor to a
significant risk of losing all of the amount invested.

Persons considering making investments should consult an authorised person
specialising in advising on such investments. This announcement does not
constitute a recommendation concerning the Ordinary Shares. The value of the
Ordinary Shares could decrease as well as increase. Potential investors should
consult a professional advisor as to the suitability of any investment in
Ordinary Shares for the person concerned. Nothing contained herein constitutes
or should be construed as investment, tax, financial, accounting or legal
advice or a representation that any investment or strategy is suitable or
appropriate to your individual circumstances.

Unless otherwise indicated, market, industry and competitive position data are
estimates (and accordingly, approximate) and should be treated with caution.
Such information has not been audited or independently verified, nor has the
Company ascertained the underlying economic assumptions relied upon therein.
Certain data in this announcement, including financial, statistical and
operating information has been rounded. As a result, the totals of data
presented in this announcement may vary slightly from the actual arithmetic
totals of such data. Percentages may have been rounded and accordingly may not
add up to 100%.

For the avoidance of doubt, the contents of the Company's website or any other
website are not incorporated by reference into, and does not form part of,
this announcement.

SP Angel, which is authorised and regulated by the Financial Conduct Authority
in the United Kingdom, is acting exclusively for the Company and no-one else
in connection with Admission. SP Angel will not regard any other person as its
client in relation to Admission and will not be responsible to anyone other
than the Company for providing the regulatory protections afforded to its
clients, nor for providing advice in relation to the contents of this
announcement or any transaction, arrangement or other matter referred to
herein.

Neither SP Angel, nor any of its affiliates or any of its directors, officers,
employees, advisers, agents or any other person accepts any responsibility or
liability whatsoever for, or makes any representation or warranty, express or
implied, as to the truth, accuracy, completeness or fairness of the
information or opinions contained in this announcement (or whether any
information has been omitted from the announcement) or any other information
relating to the Company, its subsidiaries or associated companies, whether
written, oral or in a visual or electronic form, and howsoever transmitted or
made available or for any loss howsoever arising from any use of this
announcement or its contents or otherwise arising in connection therewith and
any liability therefore is expressly disclaimed.

 

 

 

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