Hercules Site Services sees revenues soar to more than £32M

Hercules Site Services

Hercules Site Services plc, the Cirencester-based labour supply company for the UK infrastructure sector which floated on the London Stock Exchange’s junior AIM in February, raising £4 million, has seen revenues rise 42 per cent to £32.7 million.

Adjusted EBITDA increased by 70 per cent to £2.4 million, with pre-tax profit of £515,000 for the year.

During the year, the company was appointed as a labour supply partner to the Balfour Beatty Vinci joint venture on HS2 (Phase 1, northern section), which is expected to underpin significant revenue growth over the next six years. It also successfully established Suction Excavator Services. With demand outstripping supply the new company has ordered 11 eleven more suction excavators due for delivery in 2022.

The company has also agreed to supply safety critical rail workers to Volker Fitzpatrick, become an approved supplier to the M Group with new projects underway for Dyer & Butler and Milestone and has been appointed labour supply partner to Vinci for the Southampton to London pipeline, and to Skanska on the M42 Junction 6 improvement scheme.

Hercules CEO Brusk Korkmaz said: “We are delighted to present these results, our first since our successful listing in February 2022, and to propose our inaugural dividend to investors. Our results for the period show a strong and rapid bounce-back from 2020, where our year-on-year growth track record experienced an interruption due to the impact of covid on the construction and infrastructure sectors. They also show that we have delivered solid growth on the prior, non-covid year of 2019, thanks to our reputation in the industry for our ability to quickly meet our blue-chip clients’ labour needs through our use of proprietary digital technology. The construction and infrastructure sectors are now as buoyant as ever and set to benefit from more than £650 billionprojected public and private investment spend over the next ten years.

“The current financial year has kicked off to a fantastic start, with trading in line with our expectations and exciting growth initiatives already underway. The award of a contract to provide labour to HS2 is expected to step-change our growth over the next six years and we have been placing workers on site over recent months. We are also ramping up our award-winning Suction Excavator Services business following a successful 2021, where demand outstripped supply. We are also having positive conversations in respect to monetising our digital technology and wellbeing services, demonstrating the positive reception we are experiencing for the aspects of our business which set us apart from our peers. We thank our new investors for their support in our recent IPO and look forward to communicating our progress towards our stated goals in the coming months.”