REG - Hercules Site Svcs - Strategic Update and Notice of Results

Hercules Site ServicesAnnouncement

06/01/2025 07:00

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RNS Number : 1161S  Hercules Site Services PLC  06 January 2025

6 January 2025

 

Hercules Site Services plc

 

("Hercules" or the "Company" or the "Group")

 

Strategic Update and Notice of Results

 

 

Hercules Site Services plc (AIM: HERC), a leading technology enabled labour
supply group for the UK infrastructure and construction sectors, is pleased to
provide a strategic update relating to its proposed intention to divest its
Suction Excavator business, (the "Proposed Divestment"), as it is now a
non-core activity.

 

In the 12 months to 30 September 2024 ("FY24"), the Suction Excavator business
amounted to less than 5% of the Group's revenue, but 88% of its consolidated
debt excluding invoice discounting. Therefore, the Proposed  Divestment will
materially reduce debt levels and increase the Group's free cash flow.  The
Proposed Divestment will enable the Group to dedicate greater resources to
deliver on its strategy to capitalise on the continued high-growth
opportunities available to Hercules' core Labour Supply business as the UK
continues to carry out a series of substantial construction and infrastructure
upgrades.

 

The Proposed Divestment, when completed, is expected to contribute to higher
profit before tax, improved earnings per share, and enhanced returns for
shareholders in the near future. In addition, Hercules expects this move to
reinforce the Group's market positioning as a trusted labour supplier of
skilled operatives and trades for large scale UK infrastructure projects in
rail, roads, water, power networks to nuclear energy and airports.

 

Reflecting the decision to sell the Suction Excavator business, in accordance
with accounting standards, the Group's forthcoming FY24 results will present
the Suction Excavator business results as Discontinued Operations.

 

Notice of Results and Investor Presentation

 

The Group's FY24 results will be announced on Monday 13 January 2025.

 

Brusk Korkmaz, CEO, and Paul Wheatcroft, CFO, will deliver a live presentation
relating to the Full-Year Results via the Investor Meet Company platform on
the same morning at 11.00am GMT.

 

The online presentation is open to all existing and potential shareholders.

 

Questions can be submitted pre-event via the IMC dashboard or at any time
during the live presentation via the "Ask a Question" function. Although the
Company may not be in a position to answer every question it receives, it will
address the most prominent within the confines of information already
disclosed to the market. Responses to the Q&A from the live presentation
will be published at the earliest opportunity on the Investor Meet Company
platform.

 

Investor feedback can also be submitted directly to management post-event to
ensure the Group can understand the views of all elements of its shareholder
base.

 

Investors can sign up to Investor Meet Company for free and add to meet
Hercules via:

 

https://www.investormeetcompany.com/hercules-site-services-plc/register-investor
(https://www.investormeetcompany.com/hercules-site-services-plc/register-investor)

 

Investors who have already registered and added to meet the Group will be
automatically invited.

 

For further information and enquiries, please contact:

 

 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 (Corporate Finance)

 Grant Barker / Rob Rees (Sales and Broking)

 Cavendish Capital Markets Limited (Joint Broker)                              +44 (0) 20 7397 8900

 Adrian Hadden / Charlie Combe / Dale Bellis (Sales and Broking)

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

 Elisabeth Cowell / Ian Silvera / Nina Renata Pop                  Hercules@secnewgate.co.uk

 

 

 

 

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