Hercules Site Services Share Discussion Threads

[mrmcnee] 01/2/2024 21:43

Did not know that free float is so small, only 13% of those 62m shares are available for trading.

That means the price could move up disproportionally on very low buy volume.

Current price seems an excellent entry point.

[mrmcnee] 01/2/2024 14:02

I was at their presentation recently, they were very impressive, growth in all sectors and hinted some large contracts may be coming their way re nuclear energy projects.

Only 62m shares in issue, they said their cash balance was a healthy £4.5m, the shares traded at 70p last February.

[m1sterx] 01/2/2024 13:08

This is moving, no wonder, recent broker coverage has a 55p price target, at current levels the dividend yield is 7%.

[davidosh] 25/1/2024 18:05

It was a very good presentation on the Mello show.

[lawson27] 25/1/2024 14:13

Taken a few @25, looking a decent play for the recovery, GLA

[melloteam] 22/1/2024 00:43

Just to let shareholders and prospective investors know that Hercules Site Services will be presenting on the MelloMonday webinar on Monday 22nd January 2024, starting at 5pm.

Programme:
5:00pm Paul Hill presents “Where the markets are wrong & how to profit?”
5.30pm New IPO…Tertre Rouge Assets (TRA)
6:10pm Company presentation by Hercules Site Services (HERC)
6:50pm Educational Session
7pm Company presentation by Good Energy (GOOD)
7:40pm BASH Panel with Kevin Taylor (JNEO), Mark Simpson (NXQ) and Richard Crow (AVON)

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.

[edmonda] 16/1/2024 09:45

"Strong conclusion to FY23, positive start to FY24" (new research note from Equity Development)

Hercules has reported strong full year results, with profits well ahead of our expectations. Against a supportive backdrop for infrastructure investment, we believe momentum is building and a positive outlook statement anticipates another year of growth in FY24. We reflect this in our revenue forecasts, whilst noting that an increasing interest charge will reduce profits in the short term.

All three divisions contributed to the strong growth in FY23, but Labour Supply remains, by some distance, the largest element of the Group. This division accounted for 75% of Group revenue and 65% of gross profit whilst also delivering the strongest revenue growth in FY23 (+92%). This was driven in particular by additional demand under the Balfour Vinci JV contract on HS2 (London to Birmingham), which still has several years to run.

The outlook statement strikes a positive tone, highlighting new revenue streams which should make a positive impact in FY24. Further organic progress therefore looks well underpinned and November’s Future Build acquisition (Hercules’ first deal) adds another leg to the growth story.

Hercules trades on a FY25 P/E rating of c.16x and a dividend yield of 7% with scope for good earnings growth over the medium term. Our new Fair Value / share estimate is 55p (from 60p), representing a FY25 EV/EBITDA rating of 11.5x

Link to report:

[edmonda] 03/1/2024 08:35

more encouraging momentum for with news of £5.75m of contracts with Thames and Anglian Water won in Q4'23 by their Civil Projects division 🙌
Underpins the positive outlook covered in our recent note with 60p/share Fair Value:

[edmonda] 01/12/2023 10:52

Hercules' deal for Future Build Recruitment is both highly complementary and earnings enhancing.
Equity Development see HERC as materially undervalued and keep a 60p/share Fair Value, as you can hear/read in the new note out today. Free access here:

[jonwig] 17/10/2023 09:37

Cayenne - thanks for the reply. Keller (KLR) seems to be an international success in groundworks. I bought when it floated in 1995 (I think) at 135p, but sold quite a while ago.

The down votes are stalkers who trawl the boards, dissing the poster not the post. As a member since 2004, I know the sort, and just ignore.

[cayenne45] 17/10/2023 08:55

jonwig- I see someone down voted your comment, for the person who did, good luck to them, years ago I'd have almost challenged the view but now, if someone wants to get by on hope and luck, well good luck, same a Fulcrum or the one over in Braintree who do groundworks. I have a good friend who was in and held on in Fulcrum, not only was the position too large per se but he lost sense of perspective as it fell, it was horrible to see and i just looked at the price not 35p or 30p but 0.15p, wipe out
These businesses are either run as an exit strategy for the founders or lifestyle and you can bet your bottom dollar many of them will have considered the EOT route as that seems to be the refuge of scoundrels these days.

[jonwig] 17/10/2023 07:50

Cayenne - I don't know the sector in any depth, but they do have problems achieving a regular "normal" profit (as opposed to EBITDA). Finance costs eat up operating profits, and then the wonders of tax credits lift them above the bottom line. Those will end some day.

The placing earlier this year wasn't pre-announced: some poor governance there.

Your comments about Balfour make sense.

[edmonda] 17/10/2023 07:40

"Positive year-end update, ahead of expectations"

A positive year-end update from Hercules confirms a strong conclusion to FY23, ahead of expectations. It has been another year of excellent organic revenue growth (+60% at Group level), with progress in all three divisions. This continues an impressive track record (average revenue growth over past three years >50%) and Hercules enters FY24 with momentum.

Hercules expects both its revenue and adjusted EBITDA for FY23 to be ahead of market expectations. Revenue is expected to be > £80m, representing an upgrade of at least 8% to previous expectations. We assume a similar uplift to our EBITDA forecast of +8% to £3.7m.

The overall performance has again been driven by the core Labour Supply business, which benefited from the ramp-up of the multi-year HS2 Phase 1 contract (London to Birmingham). In Civils, the Group is benefiting from increasing investment in the water sector, as illustrated by the £3.1m of contract awards announced on 20th September. Meanwhile, the Suction Excavator business continues to see solid utilisation rates, having expanded by 14 vehicles over the period to create one of the largest fleets in the country.

To us, the Group’s strong growth trajectory and forecast free cash flow (double digit FCF yield) suggest significant value in the shares. Our Fair Value per share of 60p represents a 7.5% FCY yield on prudently positioned FY25 forecasts.

[edmonda] 10/10/2023 07:52

New business wins for both Labour Supply and Civils Projects divisions are encouraging

Equity Development see growth supported by the outlook for infrastructure spend, undersupply of skilled labour, and organic investment: 60p/share is their fair value.

Read new note here, free access:

[edmonda] 20/7/2023 13:43

Investor Presentation video (July 2023)

Hercules Site Services (AIM:HERC), a leading supplier of labour to the UK’s construction industry, hosted an online presentation for investors.

Brusk Korkmaz (CEO & Founder) and Paul Wheatcroft (CFO) ran investors through the company and its principal business areas, highlights of their strong H1 period including an 85% YoY turnover increase, and key tenets of the growth strategy. The team also answered a wide range of questions from viewers.

The full video has been divided into chapters as below:
0:00:03 Introduction & Business Overview
00:03:16 History of Growth
00:05:41 H1 2023 Highlights
00:08:25 Group Statement
00:11:11 Labour Supply
00:14:28 Suction Excavators
00:17:11 Civil Projects
00:18:46 Financials (Balance Sheet & Cash Flow)
00:21:08 UK Infrastructure investment
00:23:38 Growth Strategy
00:26:22 Investment Case
0:27:53 Questions & Answers

Link to full video:

[edmonda] 29/6/2023 07:35

"Driving growth through innovation" (detailed initiation report from Equity Development)

Link to full note here:

Hercules Site Services is an innovative, entrepreneurial and high-growth business with a focus on the UK Infrastructure market. Its shares were listed on the AIM in February 2022.

The core business is labour supply, where Hercules has built a reputation as a trusted partner to an impressive blue-chip client list. Hercules has also expanded its offering in recent years into complementary construction services, namely civil projects and specialist equipment hire.

Growth to date has been highly impressive (three-year revenue CAGR 50%) and demand is underpinned by a favourable outlook for infrastructure spending, a structural undersupply of skilled labour and recent organic investment in technology and fleet expansion.

Infrastructure investment has been a key driver of the recovery of the construction industry post Covid and the medium-term outlook is well underpinned by major projects, not least HS2 with Phase One (London to Birmingham) approaching peak activity over the next 3 to 5 years.

We believe that our full year earnings forecasts are conservative and see Fair Value at 60p per share.

[melloteam] 22/6/2023 13:50

Just to let shareholders and prospective investors know that Hercules Site Services and Public Policy Holding Company will be presenting on the MelloMonday webinar at 5pm on Monday 26th June 2023.

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.

[yellowstoneadvisory] 07/6/2023 10:09

If you missed the Hercules Site Services investor webinar this week you can read a write up of the event here.

[cayenne45] 06/6/2023 07:28

Good luck to the board as so long as they can find saps to buy in things will be good. There is very little merit in investing in small construction related businesses except in the faint hope of a takeover by a competitor, it might happen but a low probability.

[yellowstoneadvisory] 06/6/2023 07:18

Webinar today at 12pm. #HERC - Meet CEO Brusk Korkmaz and CRO Paul Wheatcroft who will provide an introduction to Hercules Site Services plc and update on performance following the publication of the HY results which were released yesterday

Register:

[yellowstoneadvisory] 11/5/2023 18:14

Investor webinar on 6 June at 12pm. Brusk Korkmaz, CEO and Paul Wheatcroft, CFO will provide an introduction to Hercules Site Services plc and update on performance following the publication of the HY results which will be released in June

Register