Hercules Site Services Share Discussion Threads

[yawn1971] 09/10/2024 12:42

Disappointing drop from 49p. Good RNS

[edmonda] 09/10/2024 10:37

"Trading well ahead of expectations"

Link to new research note:

A strong year end update from Hercules this morning confirms another period of impressive organic revenue growth, well ahead of expectations. This prompts 11% upgrades to our revenue and adjusted EBITDA forecasts, sustaining recent momentum into the new financial year. Hercules is led by an entrepreneurial and ambitious management team with additional firepower - following last month’s £8m fundraise - to take advantage of opportunities as they arise.

Hercules expects to report another record year, with revenue, adjusted EBITDA and adjusted PBT for FY24 all well ahead of market expectations. Revenue is expected to be over £105m, an increase of 24% year on year. For us, this prompts 11% upgrades to revenue and adjusted EBITDA forecasts, and a 55% upgrade to adjusted PBT, albeit from a low base.

Each of Hercules’ core divisions has delivered organic revenue growth. The Group’s markets (infrastructure and construction sectors) have been supportive but not without challenges. The performance has been underpinned by Hercules’ own growth initiatives (e.g. the launch of the Hercules Construction Academy) and an ability to respond to opportunities as they arise.

We share the confidence shown by recent supporters of the fundraise and see scope for further operational outperformance as FY25 progresses, with M&A being an obvious potential earnings and share price catalyst. We increase our Fair Value / share estimate from 60p to 70p.

[bazzer1000] 09/10/2024 08:02

And still below placing price.

[bazzer1000] 09/10/2024 08:00

"and to updating the market on material updates in due course" ....sounds like there is more news to come?

[edmonda] 09/10/2024 06:43

CEO 'thrilled' as FY24 update expects a record year, with revs (up 24% and at least £105m), adj EBITDA and PBT all seen 'well ahead of market expectations'

Confident outlook too, with 'a lot to look forward to in FY25'
🙌🙌

[edmonda] 09/9/2024 07:11

HERC raises £8m to strengthen the Group’s balance sheet and support future growth ambitions.
With a strengthened balance sheet, it looks well positioned and Equity Dev raises their Fair Value from 55p per share to 60p - read/hear their new note:

[jubberjim] 02/8/2024 12:27

Very small director buy a few days ago.

Has only just popped up in my notices.

Funny no mention on any of the posts on here

I have to admit have taken my eye of the ball here

[edmonda] 25/7/2024 08:51

Today's business update from HERC follows upbeat interim results in June: Labour supply (the largest division) reports more success; Civils Projects is an attractive sector too given need for huge investment.

Equity Development have new research out and retain a 55p/share Fair Value, and highlight a 4.7% dividend yield. Read full note here, free access:

[lawson27] 03/6/2024 12:56

What's not to like, onwards and upwards, GLA

[edmonda] 03/6/2024 06:58

"Excellent H1 performance, well on track for full year" (new research report)

Hercules’ H1 results confirm another excellent performance culminating in record revenues, EBITDA and PBT. The Group is on track to meet market expectations for the full year. All three businesses reported double-digit growth for H1, benefiting from underlying market demand, Hercules’ investment in new service lines and technology, as well as a maiden contribution from the Future Build acquisition.

Contract momentum continues, with over £5m in civil projects and new framework agreements signed with Costain and Hill Group. The integration of Future Build is progressing well, and the Hercules Construction Academy is already developing a reputation for first class training. Importantly, H1 was a period of strong operational cash generation, supporting an interim dividend of 0.6p per share.

The outlook statement indicates that Hercules is on track to meet market expectations and anticipates further strong demand for the Group’s services. We also take confidence from recent market indicators with April’s PMI survey highlighting the strongest pace of expansion since February ’23.

In our view, Hercules is a business with good trading momentum, an ambitious management team and a focus on the most attractive segment of the construction market. We see scope for forecast outperformance in the second half, note the attraction of a 4.7% dividend yield, and reiterate our 55p Fair Value / share estimate.

Link to research:

[edmonda] 13/5/2024 06:44

"Further good growth in H1, in line with expectations"

Hercules’ H1 trading update confirms another period of strong growth, in line with expectations. Revenue in H1’24 is expected to be over £47m, an increase of c.27% over H1’23. This represents c.50% of our FY’24 forecast (£94.7m), suggesting the Group is well on track at the half year stage.

All income streams grew, underpinned by substantial demand from the infrastructure sector, as well as the Group’s own growth initiatives. Contract momentum remains positive, and we note an encouraging trend in recent industry data.

Recent contract successes included over £5m in civil projects and the significant new framework agreement with Costain. UK Construction industry data (PMI) was also positive in April for the second month running, suggesting a more supportive environment overall.

We look forward to further details in the interims on 3rd June and retain our Fair Value / share estimate of 55p.

Link to note:

[lawson27] 11/3/2024 11:45

A nice steady climb and consolidation in the 50s up to results in June, will suit just fine. GLA

[edmonda] 11/3/2024 11:40

Yes a solid update, and a good first full year as a listed company for with FY’23 results well ahead of expectations.
In our view, the rating of Hercules’ shares is yet to reflect the Group’s growth momentum and our Fair Value/share remains 55p.
See new research note out today:

[lawson27] 11/3/2024 10:08

Very happy with that statement this morn, onwards and upwards, GLA

[gotabsirius] 09/2/2024 21:01

Looking to make this into a £1bn Company in the next 7-8 years. Now there's an exciting strap line, and there's probably the room in the Construction industry for a major labour provider to grow into that space. Very interesting potential here....

[edmonda] 08/2/2024 13:44

Fine, confident outlook with diverse Q&A. Will hopefully have a link to the recording to circulate tomorrow.

[gotabsirius] 08/2/2024 13:31

How did it go?

[edmonda] 08/2/2024 08:44

Management present and take Q&A at 10.45am TODAY.

All are welcome, simply register here

[jubberjim] 07/2/2024 09:22

Have left a bid

I refuse to get sucked in to the machinations of others

If it happens it happens... and in the meantime

[yasxii] 07/2/2024 08:43

Gentlemen

For clarity one wishes to declare the Gracious Fellow has taken profits over recent sessions, you see a near 40% gain in these markets is not to be sniffed at, liquidity has provided an easy exit point.

Readers may be wondering where the cash will be redeployed, well what can one say, being a modest and sagacious fellow one need look no further than CNSL, another majorly undervalued under radar gem operating in a sector that is booming.

Remember it never hurts to take profits.

[gotabsirius] 07/2/2024 08:15

I'm trying to do the same. Tricky getting any volume. PR tomorrow also likely to increase company awareness/volume so trying to get in prior

[jubberjim] 07/2/2024 07:46

Going to bite the bullet this morning

I seem to remember these getting tipped in This is Money a few months ago

It all depends if I get a price and a reasonable spread because as so often in these cases spread widens automatically and does not make it worth my while as I refuse to deal under those circumstances

Wish me luck

[jubberjim] 06/2/2024 17:21

Been watching these for some time

Went on line this am to try and get a price

Abject failure now I know why

If this goes it will go like a rocket

Think I will have to wait no point chasing it when the market is this thin

Have enough to occupy me

Good luck hope it goes well