REG - Hercules Site Svcs - Expansion of Suction Excavator Fleet

Hercules Site ServicesAnnouncement

19/04/2022 07:00

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RNS Number : 4825I  Hercules Site Services PLC  19 April 2022

19 April 2022

 

Hercules Site Services plc

 

("Hercules" or "the Company")

 

Expansion of Suction Excavator Fleet

 

 

Hercules Site Services plc (AIM: HERC), a leading technology enabled labour
supply company for the UK infrastructure sector, announces it has agreed to
acquire an additional ten suction excavators for a total consideration of
approximately £4.5m. Hercules is experiencing high levels of demand for its
suction excavator services which complement the Company's core labour supply
business. Suction excavators can safely and efficiently excavate significant
quantities of materials or debris, while reducing the risk of service strikes.

 

The Board of Hercules believes this decision will help accelerate Hercules'
overall growth plans in a key area for the Company by expanding its fleet of
suction excavators from 20 vehicles by August 2022 to 30 vehicles by March
2023. The additional units will be 90% funded by conventional asset finance,
in line with the Company's other suction excavator orders, with the balance
being satisfied from existing cash resources. The purchase will mean that
Hercules has one of the largest suction excavator fleets in the UK, with a
strong and well-diversified client base in this area of business. Hercules'
current suction excavators have a high average utilisation rate of 85%.

 

Demand for the Company's fleet can be partly attributed to the significant
industry acclaim it has received for its involvement in implementing the newly
developed 'Zero-Trim' piles method, which uses a vacuum excavator to suck out
excess concrete from a pile while still wet. Traditionally, the concrete is
overpoured and then site teams have to trim the excess concrete, which can
cause health problems, including hand-arm vibration syndrome, hearing loss and
silicosis. The 'Zero-Trim' method has been successfully rolled out onto the
HS2 project and Hercules has won three awards over the past 12 months, in
conjunction with its partners, including the award for health, safety and
wellbeing initiative of the year at The British Construction Industry Awards
2021.

 

Hercules CEO Brusk Korkmaz said: "Due to their high utilisation rates and a
favourable tax regime thanks to the UK government's super-deduction tax
incentive for business investments, we wanted to build on the strong momentum
in this area of the business and cement Hercules as a leading provider of
UK-wide suction excavator services.

 

"We have also noted the construction industry's aim to reduce utility strikes,
which cost the industry hundreds of millions in indirect costs each year.
Despite only entering the sector just over a year ago with two suction
excavators, Hercules has rapidly gained industry acclaim for delivering
much-needed innovation and has subsequently expanded to become one of the
market leading suppliers of operated suction excavators in the UK.

 

"Our strong relationships with existing and new clients have enabled us to
identify significant future demand for suction excavator services and we
believe this demand is also underpinned by UK government commitments on
infrastructure spending and the desire to improve health and wellbeing on
site, which our techniques are proven to deliver."

 

 

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.

 

 

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

 

About Hercules Site Services plc

Hercules is a leading tech enabled labour supply company for the UK
infrastructure sector. Founded in 2008, Hercules has an established track
record of profitability and fast-growth and has built a blue-chip customer
base which includes Balfour Beatty, Costain, Kier, Skanska, Dyer & Butler
and Volker Fitzpatrick. The Company has been appointed to provide labour for a
range of high-profile infrastructure projects, such as HS2, due to its agile,
innovative, digital first approach and complete service offering. It is
well-placed to benefit from any government increase in infrastructure spending
and its experienced management team has identified multiple opportunities for
growth.

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