Fortnight ahead | HERC
Company research
Hercules Site Services (HERC, 72p, £42m mkt cap)
Technology enabled labour supply company for the UK infrastructure sector. Placing and trading comment. £1.7m raised, through a placing of 3,777,778 new ordinary shares at a price of 45p per share (30-day volume weighted average price, 59.2p). The net proceeds will be used to provide working capital to support organic growth in the company’s labour supply division, to deliver key infrastructure, civil engineering, utilities, groundworks, highway and railway projects across the UK. The Placing received support from new and existing investors, including two of the company’s largest shareholders. Premier Miton Group, a substantial shareholder has subscribed for 355,555 shares in the placing.
Trading: “After achieving record revenues and positive year-on-year growth in 2022, Hercules continues to build momentum and deliver on its strategy. Turnover growth has been in the region of 50% per annum for two years now, and we believe a third year of similar growth lies ahead. We recently introduced two new income streams in the Labour Supply business, being the supply of security personnel, and white-collar placements, and both have received their first contracts and are progressing well. With a strong 2023 pipeline in place, these funds will support further organic growth in our Labour Supply division, which represented over 67% of our revenue in 2022”.
NB Prices are as at the previous day’s close.
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