Hercules Site Services Share Discussion Threads

[edmonda] 20/7/2023 12:43

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 06:35

"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 12:50

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 09:09

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 06:28

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 06:18

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 17:14

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

[oshy92] 06/4/2023 07:34

Hi - AIM/ IHT webinar - Thur 20 April from 12.30pm. Hercules Microlise & DX Group all presenting. To register go to:

hxxps://us02web.zoom.us/webinar/register/2416807656566/WN_HVdk9ql9Q2OuMG_l1tCIvQ

[cayenne45] 27/2/2023 19:43

Really sums up the small caps attitude to private investors but as I have said before, why anyone would invest in this or any other small construction related business is beyond me. HS2 is just a big "name" hook for retail punters.
Shame on the Board

[jhanson] 27/2/2023 15:30

Reading the results you wonder if an acquisition is on the cards or a divergence into fields they have not got the expertise in. The other point is the cost of plant machinery.

The placing is roughly 7 to 8% of total shares "albeit very few are in PI hands The CEO owns some 70% according to Master Investor - MW"

[dr biotech] 27/2/2023 14:42

This was given a moderately positive write up in scsw this month, though the conclusion wasn't to jump in anytime soon. Interesting bit mentioned that the founder and CEO didn't take his dividend this year but did well by increasing the rent on the offices that HSS use. Thats a bit of a red flag for me. I don't like seeing companies that IPO raise more money so soon or at such a high discount either - and there doesn't appear to be any specific use for the money.

Its on my watchlist as I keep a theoretical portfolio of companies that have used Primary Bid - thats been quite interesting in itself.

[jonwig] 27/2/2023 12:45

Quite!

They never announced there would even be a placing, did they? But they were happy to release results which gave a positive impression.

All the posters here, including myself, were a bit suspicious of this outfit.

[papillon] 27/2/2023 12:36

WOW! Today's placing is priced at 45p, a massive discount to Friday's over 70p closing price. Those who bought recently must be gutted! No wonder there have been no posts on this bb for 4 months! 🤣

[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.



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;



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:

[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.