Hercules Site Services
Ticker: HERC Exchange: AIM www.hercules-construction.co.uk/
Hercules Site Services is a leading supplier of labour to the Construction industry in the UK. The business was founded in 2008 by CEO Brusk Korkmaz and has achieved significant growth since then.

Excellent H1 performance, well on track for full year

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.



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