Hercules Site Services PLC Strategic Update and Notice of Results

RNS Number : 1161S

Hercules Site Services PLC

06 January 2025

 

6 January 2025

 

Hercules Site Services plc

 

("Hercules" or the "Company" or the "Group")

 

Strategic Update and Notice of Results

 

 

Hercules Site Services plc (AIM: HERC), a leading technology enabled labour supply group for the UK infrastructure and construction sectors, is pleased to provide a strategic update relating to its proposed intention to divest its Suction Excavator business, (the "Proposed Divestment"), as it is now a non-core activity.

 

In the 12 months to 30 September 2024 ("FY24"), the Suction Excavator business amounted to less than 5% of the Group's revenue, but 88% of its consolidated debt excluding invoice discounting. Therefore, the Proposed  Divestment will materially reduce debt levels and increase the Group's free cash flow.  The Proposed Divestment will enable the Group to dedicate greater resources to deliver on its strategy to capitalise on the continued high-growth opportunities available to Hercules' core Labour Supply business as the UK continues to carry out a series of substantial construction and infrastructure upgrades.

 

The Proposed Divestment, when completed, is expected to contribute to higher profit before tax, improved earnings per share, and enhanced returns for shareholders in the near future. In addition, Hercules expects this move to reinforce the Group's market positioning as a trusted labour supplier of skilled operatives and trades for large scale UK infrastructure projects in rail, roads, water, power networks to nuclear energy and airports.

 

Reflecting the decision to sell the Suction Excavator business, in accordance with accounting standards, the Group's forthcoming FY24 results will present the Suction Excavator business results as Discontinued Operations.  

 

Notice of Results and Investor Presentation

 

The Group's FY24 results will be announced on Monday 13 January 2025.

 

Brusk Korkmaz, CEO, and Paul Wheatcroft, CFO, will deliver a live presentation relating to the Full-Year Results via the Investor Meet Company platform on the same morning at 11.00am GMT.

 

The online presentation is open to all existing and potential shareholders.

 

Questions can be submitted pre-event via the IMC dashboard or at any time during the live presentation via the "Ask a Question" function. Although the Company may not be in a position to answer every question it receives, it will address the most prominent within the confines of information already disclosed to the market. Responses to the Q&A from the live presentation will be published at the earliest opportunity on the Investor Meet Company platform.

 

Investor feedback can also be submitted directly to management post-event to ensure the Group can understand the views of all elements of its shareholder base.

 

Investors can sign up to Investor Meet Company for free and add to meet Hercules via:

 

https://www.investormeetcompany.com/hercules-site-services-plc/register-investor

 

Investors who have already registered and added to meet the Group will be automatically invited.

 

For further information and enquiries, please contact:

 

Hercules Site Services plc Brusk Korkmaz (CEO) Paul Wheatcroft (CFO)	c/o SEC Newgate
SP Angel (Nominated Adviser and Broker) Matthew Johnson / Adam Cowl (Corporate Finance) Grant Barker / Rob Rees (Sales and Broking)	[phone]
Cavendish Capital Markets Limited (Joint Broker) Adrian Hadden / Charlie Combe / Dale Bellis (Sales and Broking)	[phone]
SEC Newgate (Financial Communications) Elisabeth Cowell / Ian Silvera / Nina Renata Pop	[phone] [e-mail]

 

 

 

 

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