Hercules Site Services Share Discussion Threads

[cayenne45] 31/10/2022 10:28

Schmucks both from a fundamental perspective but also from a trading perspective (if they buy and hold)

[bookbroker] 31/10/2022 08:31

HS2 will be curtailed at some point, just a big money pit with little to no benefit, sooner rather later before too much is already done. Money better spent on new nuclear power stations.

[jonwig] 31/10/2022 08:29

The power of the Mail!

I see a couple of buyers got in at 46p by 8:01 before the market-makers woke up.

[masurenguy] 30/10/2022 18:47

Me too. I just posted that article as a point of interest but I have no position here.

[jonwig] 30/10/2022 17:25

Thanks for that. But the word "profit" isn't in their statement, and I have to wonder what the next "budget" will have to say about infrastructure spending. HS2 viable?

[masurenguy] 30/10/2022 16:19

MIDAS SHARE TIPS: Hercules Site Services is a giant that finds workers for rail and road projects and could build your profit
FINANCIAL MAIL ON SUNDAY: 30 October 2022

Back in September 2021, the Government pledged to spend £650bn on infrastructure projects across the UK, from hospitals to roads to power stations. Much has changed since then but we are still in urgent need of investment in schools and hospitals, enhanced transport links and a more secure energy system. All this activity requires not just billions of pounds but also thousands of workers. The construction industry already employs more than two million people but researchers predict that it will need at least 250,000 more by 2026.

Hercules Site Services is helping to bridge the gap. The company joined the AIM market last February at 50.5p a share. The stock has since fallen to 42.5p, but the price should recover and then some as chief executive Brusk Korkmaz flexes his muscles and shows what Hercules is made of. Ten years ago he founded Hercules from his bedroom, sourcing and supplying construction workers for contractors. The company has grown consistently since then, providing top businesses such as Balfour Beatty, Kier and Skanska with workers ranging from bricklayers, plasterers and pipelayers to engineers, foremen and supervisors.

From the start, Hercules has had a digital slant, using technology to make the recruitment process as simple and effective as possible. In 2019, Korkmaz went one stage further, creating the Hercules app which allows users to find out instantly about jobs that are relevant to them and in their local area. More than 7,500 workers have registered with the app and numbers are growing fast. Hercules vets applicants and – once they have been approved – Korkmaz and his team make it their business to keep app users in work. Several hundred are already busy on the HS2 railway project, with others laying fibre cables in Kent, upgrading the M42 near Birmingham and fixing waterworks in London. Hercules aims to ensure that workers can move seamlessly from job to job, without having to travel far from home. And, even though labourers are contracted out to big building firms, Hercules takes charge of paying them and looking after them.

Korkmaz takes this part of the business particularly seriously, ensuring that workers receive a decent wage and are paid on time. He also sends mobile health and wellness units to various sites offering medicals, hearing and eye tests, even lung function analysis and wellbeing assessments to anyone who wants them. Korkmaz is a real advocate of inhouse training as well, intending to open a specialised academy in Nuneaton, Warwickshire, next year to attract new workers into the construction industry and help existing labourers to learn new trades. Planning applications have been submitted and local authorities are keen so there are high hopes that Hercules will receive the green light within the next few weeks.

Labour supply accounts for some 75% of Hercules' revenues, but the group also offers contractors help with individual projects, managing and delivering them from start to finish where needed, often using topnotch technology to complete jobs efficiently and at low cost. The firm has one final string to its bow, providing specialised kit to construction sites, particularly suction excavators, big machines which make below ground excavation safer, faster and much more effective than traditional, more manual methods.

Figures for the year to September 30 will be announced next January but, earlier this month, Korkmaz said revenues would be more than £45m, up around 38% ahead from 2021, while profits are likely to show strong growth too. Unusually for a small, AIM-listed business, Hercules pays a dividend as well, with 1.7p offered to shareholders for the year to last September and payments expected to increase steadily in line with profits.

Midas verdict: Based just outside Cirencester, Hercules is a fast-growing UK business with robust long-term prospects. Britain's infrastructure is creaking at the seams, several projects are already under way and more should follow. Hercules can supply these schemes with trained, local labourers and specialised safety kit. At 42.5p, the shares are a buy.

[melloteam] 13/6/2022 11:24

Just to let shareholders and prospective investors know that Hercules will be presenting on MelloMonday tonight.

Https://melloevents.com/mellomonday-13th-june/

The full programme for the evening is here...

Monday 13th June 2022, 5pm
Programme

5.00 pm Mello welcome and Company presentation by Impax AM with Ian Simm
5.30 pm Gervais Williams – Inflation changes everything – How the UK stock market could come to be the asset of choice for global investors
6.00 pm Nicky Foulston CEO at RBG Holdings shares her insights into the recent RNS concerning the share register
6.30 pm Paul de Gruchy presents – Alternative Funds: more than a safe port in a storm?
6.50 pm Company presentation by Hercules Site Services
7.30 pm Vector Vest
7.45 pm Specialist insight – Steve Clapham looks at The Wire Card Fraud
8.00 pm Mello BASH

There will be over 500 investors attending and these are very popular shows with company presentations, fund manager and investor interviews, and panel sessions.

Tickets are still available and if you would like one at half price then enter the code MMTADVFN50.

[jonwig] 28/3/2022 06:17

£0.m profit before an exceptional tax charge sent them into loss;

https://www.investegate.co.uk/hercules-site-svcs--herc-/rns/final-results/202203280700071452G/

However it's dressed up, I find theshare price far too high. And the reversal of the expected deferred tax asset might be thier own miscalculation.

[macc1] 28/2/2022 16:19

Afternoon, here's an investor overview of the business:

hTTps://youtu.be/nLSxPNjw0AY

[cayenne45] 11/2/2022 17:14

I'm in a business in this industry and this is a decent enough business no doubt but jeez it's hardly a "moat" and at these prices in my view anyone in it unless they know something will see the usual trickle down.
Builders are horrible, Main Builders are very horrible and main builders with inflationary pressures are beyond horrible.

[jonwig] 11/2/2022 07:16

Live presentation 09/03 at noon:

https://www.investegate.co.uk/hercules-site-svcs--herc-/rns/investor-presentation/202202110700043512B/

I still find it over-priced, but mayb they have a plan.

[jonwig] 04/2/2022 14:46

https://www.investegate.co.uk/hercules-site-svcs--herc-/rns/admission-to-trading-and-first-day-of-dealings/202202040700026570A/

[jonwig] 04/2/2022 14:46

Net profit in year to 30/09/2020 £752,200.
MCap at 55p £34m.
Historic 2020 PER 45.2x.

HY to 30/03/21, net profit £430,000; annualised £860,000
PER moves to 39.5x.

Make allowances for Covid disruption, but also post-Johnson gov't spending cuts.
Maybe they make net £1m in 2021. Realistic PER of 15x means fair value of 24p.
Optimistically on £1.5m, share price 36p.

[jonwig] 04/2/2022 14:45

. https://www.hercules-construction.co.uk/ .