TIDMHERC
RNS Number : 2823Q
Hercules Site Services PLC
17 October 2023
17 October 2023
Hercules Site Services plc
("Hercules" or "the Company")
Trading Update
Hercules Site Services plc (AIM: HERC), a leading technology
enabled labour supply company for the UK infrastructure sector, is
pleased to provide a trading update for the year ended 30 September
2023 ("FY23").
The Company expects both its revenue and adjusted EBITDA for
FY23 to be ahead of market expectations (consensus* revenue of
GBP73.1m and consensus adjusted EBITDA of GBP3.4m). Revenue is
expected to be over GBP80 million, representing an increase of c.
60% on the prior year ended 30 September 2022 ("FY22") (GBP49.5m).
The average annual revenue growth for the last three years is over
50%.
Each of Hercules' three divisions delivered increased organic
revenues, underpinned by the Company's ability to capitalise on
continued growth in the infrastructure sector.
Labour Supply
Hercules' Labour Supply division, the Company's core business,
has again delivered significant year-on-year revenue growth,
benefitting from the ramp-up of the multi-year HS2 Phase 1 (London
- Birmingham) contract. The Company began supplying labour to this
project in January 2022 and 430 Hercules operatives are currently
on HS2 sites. Hercules continues to provide additional labour in
response to increasing demand.
The Company acknowledges the current UK government's recent
announcement about the future of HS2. The decision has no impact on
the Company's contracts on the Phase 1 section of HS2 between
London and Birmingham.
New revenue streams have been introduced in FY23, with the
supply of white-collar and site security personnel. Post year end,
the Company has also launched its "live tracks" Rail offering,
signing a five-year contract with Balfour Beatty Rail Limited. The
Board of Hercules is confident that these new services will drive
additional revenue and EBITDA moving forward.
Civil Projects
Hercules' Civil Projects team has utilised its extensive
experience in the water sector to secure a significant portfolio of
work as companies in this space focus on resolving a range of
well-documented issues. With UK water companies pledging to invest
GBP10bn over the next seven years to 2030, Hercules is well
positioned to meet increasing demand for its services, while also
contributing to a cleaner, sustainable and safer infrastructure
network.
Since 1 May 2023, the Civil Projects division has been awarded
contracts with a combined value of over GBP3.1 million to deliver
critical work for two major clients relating to nine wastewater
treatment and water management projects.
Suction Excavators
The Company continues to see solid utilisation rates in its
Suction Excavator business. In response to increased demand, the
fleet has grown by 14 vehicles over the period, creating one of the
largest fleets in the country. The Suction Excavator Services
complement the Company's Labour Supply and Civil Projects
businesses, and Hercules continues to leverage cross selling
opportunities between divisions.
The Company expects to publish its full results for FY23 in
mid-January 2024.
Brusk Korkmaz, Chief Executive Officer, commented:
"We are delighted that our average annual revenue growth over
the past three years has been 50%, and we are also pleased to
report that we expect both our revenue and EBITDA for FY23 to
exceed market expectations.
"All areas of our business have experienced substantial growth
during the period, and we are observing significant opportunities
for the year ahead. Our Training Academy in Nuneaton is expected to
soft launch in November before its official opening early next
year, thereby providing an additional revenue stream in 2024 and
helping address a skills shortage in the infrastructure industry
and wider economy.
"Further new revenue streams will also be delivered through our
new Labour Supply specialisms, which are well aligned with industry
trends. For our Civils business, we are working with our clients in
the water space to upgrade sewage and water treatment works.
"We have delivered a strong financial performance and progressed
a range of strategic initiatives, which positions us well for the
year ahead as the infrastructure sector grows from strength to
strength."
*An average of current forecasts from SP Angel, Cavendish
Securities Plc and Equity Development.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 which has been
incorporated into UK law by the European Union (Withdrawal) Act
2018.
Hercules Site Services plc c/o SEC Newgate
Brusk Korkmaz (CEO)
Paul Wheatcroft (CFO)
SP Angel (Nominated Adviser and Broker)
Matthew Johnson / Adam Cowl / Harry Davies-Ball
(Corporate Finance) +44 (0) 20 3470
Grant Barker / Rob Rees (Sales and Broking) 0470
Cavendish Securities Plc (Joint Broker)
Adrian Hadden / Charlie Combe / Dale Bellis +44 (0) 20 7397
(Sales and Broking) 8900
SEC Newgate (Financial Communications) +44 (0) 20 3757
Elisabeth Cowell / Ian Silvera / Matthew Elliott 6882
Hercules@secnewgate.co.uk
About Hercules Site Services plc
Hercules is a leading tech enabled labour supply company for the
UK infrastructure sector. Founded in 2008, Hercules has an
established track record of profitability and fast-growth and has
built a blue-chip customer base which includes Balfour Beatty,
Costain, Kier, Skanska, Dyer & Butler and Volker Fitzpatrick.
The Company has been appointed to provide labour for a range of
high-profile infrastructure projects, such as HS2, due to its
agile, innovative, digital first approach and complete service
offering. It is well-placed to benefit from any government increase
in infrastructure spending and its experienced management team has
identified multiple opportunities for growth.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTFLFEEIALRLIV
(END) Dow Jones Newswires
October 17, 2023 02:00 ET (06:00 GMT)
Hercules Site Services (LSE:HERC)
過去 株価チャート
から 4 2024 まで 5 2024
Hercules Site Services (LSE:HERC)
過去 株価チャート
から 5 2023 まで 5 2024