Hercules Site Services Share Discussion Threads

[silverspoon2009] 05/2/2024 16:09

Nothing available online !

[yasxii] 05/2/2024 15:29

One draws attention to post 47 where the Gracious Fellow suggests readers should research this outfit, however, do not take too long as share price appreciation has started.

The Gracious Fellow does not usually take notice of flimsy broker targets, in this case 55p, however there are exceptions to the rule.

Rarely has the Gracious One seen such an opportunity, buyers to the fore.

[mrmcnee] 05/2/2024 14:54

Moving up now on the back of this new interview, CEO talks big project numbers towards the end and HERC look to benefit, the shares are very cheap.

Only 13% of the 62m shares in free float.

I can see that 50p+ broker target coming PDQ.

[jonwig] 05/2/2024 12:35

No worries about margins then?

Gross 19%, operating 2.5%.

[space_dust] 05/2/2024 12:17

They have been presenting to some very shrewd investors, there is another online event this Thursday, this is definitely worth adding to the monitor, my bet is when it moves it will be dynamic.

I have over recent sessions taken a position for clarity.

[mrmcnee] 05/2/2024 07:58

Liquidity in this stock is tight however volume is increasing as investors see the value proposition, the well supported yield of 7% is just one reason to acquire the stock, the other is the possible capital gain as the shares seem significantly undervalued.

Stocks like this move disproportionally and quickly when the market eventually sees the value proposition.

55p recent broker target.

[yasxii] 04/2/2024 17:36

The Gracious Fellow suggests readers complete some material research on this outfit, the numbers are very impressive, the market has yet to wake up to the chronic undervaluation.

Volume, albeit from low levels, is already building, the share price will shortly follow.

You can thank the sagacious one later.

[edmonda] 02/2/2024 11:48

Hercules Construction Academy Launch - new report available here:

Hercules officially launched its Construction Academy on 31st January at an event attended by c.150 industry partners, education professionals, local politicians and Hercules employees. This is the culmination of an ambitious plan to address the significant skills shortage in the construction industry and support major infrastructure projects across the Midlands. The Academy aims to train up to 400 entrants in its first year, making a valuable contribution to local skills and career prospects and underpinning Hercules’ own growth ambitions.

In our view, Hercules’ share price performance does not reflect recent strong progress. Our Fair Value / share estimate is 55p, representing an FY25 EV/EBITDA rating of c.11.5x.

[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 08:37

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 07:55

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 06:50

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 06:40

"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 06:52

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: