LONDON, UK: Hercules Site Services plc, a leading technology enabled labour supply company for the UK infrastructure sector, announced its intention to seek admission of its shares to trading on AIM, a market of the London Stock Exchange.
Hercules Site Services is seeking to raise approximately £5.5 million to rapidly deliver on the significant demand it 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.
In addition, up to £4.5 million will be raised for the existing shareholder from the sale of part of its interest in the Company.
The company is intending to raise new capital through the issue of Ordinary Shares to institutional investors by way of a Placing and UK retail investors through the PrimaryBid mobile app available on the Apple App Store and Google Play. PrimaryBid does not charge investors any commission for this service.
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 complete service offering fills the gap in the market and 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: “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.
“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 this is the right time to pursue an AIM listing. We are excited at the prospect of welcoming investors to our growth journey.”
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