Hercules Site Services plc (LON:HERC), a leading technology enabled labour supply company for the UK infrastructure and construction sector, has announced its audited results for the year ended 30 September 2024 (“FY 2024”).
CEO Brusk Korkmaz and CFO Paul Wheatcroft break down the financial milestones, strategic moves—including the divestment of their suction excavator business—and ambitious growth plans for 2025. From organic expansion to strategic acquisitions and the thriving construction and infrastructure sectors, discover how Hercules is poised to capitalise on new opportunities while continuing its track record of steady, shareholder-focused success in this interview below:
As announced on 6 January 2025, the Suction Excavator business results are presented as discontinued operations as the Company proposes to divest this division. The results for the year ended 30 September 2023 (“FY 2023”) have also been adjusted on this basis to enable like for like comparison. Results summary:
| Year ended 30 September 2024 | Year ended 30 September 2023 | ||||||
| £m | Continuing operations | Discontinued operations | Total | Continuing operations | Discontinued operations | Total | |
| Revenue | 101.9 | 5.1 | 107.0 | 79.8 | 4.9 | 84.7 | |
| Gross Profit | 15.0 | 2.4 | 17.4 | 14.1 | 2.3 | 16.4 | |
| Adjusted* EBITDA | 4.7 | 0.4 | 5.1 | 3.5 | 0.6 | 4.1 | |
| Adjusted** pre-tax profit | 2.6 | (1.3) | 1.3 | 1.8 | (0.9) | 0.9 | |
| Adjusted*** EPS (pence) | 3.47 | (2.01) | 1.46 | 2.86 | (1.48) | 1.38 | |
Continuing Operations – Financial Highlights:
· A further record year with Hercules delivering ahead of market expectations, with growth achieved across the Group’s Labour Supply and Civil Projects business:
o 28% increase in revenue
o 34% increase in Adjusted* EBITDA
o 43% increase in Adjusted** pre-tax profit
o 173% increase in EPS from 2023 reported EPS of 1.27p supporting decision to divest Suction Excavator business
o Cash generated in the year £7.5m (2023: £3.3m)
o Lease/debt liabilities of £9.4m relate to discontinued operations
· Successful equity fundraising of £8m to support organic growth and acquiring other labour supply companies in the infrastructure market
· Proposed final dividend of 1.12 pence per share (2023: 1.12p) (following 0.6p interim dividend paid March 2024, total dividend 1.72p (2023: 1.72p))
Corporate Highlights:
· Labour Supply: Record demand and delivery, supplying labour resources to over 40 clients and 300 different project locations during the last year
o 35% increase in the average number of operatives deployed by the Labour Supply business to 1,150 (2023: average of 850)
o Labour Supply to HS2 (Birmingham section) increased from c.425 operatives at 30 September 2023 to c.630 at 30 September 2024
o Acquisition of Future Build which established the Company’s white collar and permanent recruitment offering
o App downloads (Recruitment and Onboarding) increased year on year to c. 16,000 (2023: c.11,500)
o Strong foundations for FY 2025 growth laid in Rail with client base diversified and increased
· Construction Services: Continued Civil Projects growth and Construction Academy delivered first revenues
o Civil Projects leveraged its water sector experience to win significant levels of repeat work, mainly for key delivery partners for AMP 7
o Anglian Water Civils Framework continued at pace, with sizeable projects being allocated to Hercules
o Construction Academy opened in January 2024 and has started to deliver a diverse range of accredited courses
· Martin Tedham appointed to the Board as Non-Executive Director
*Adjusted EBITDA definition – adjusted for profit/loss on sale of fixed assets, exceptional items and R&D expenditure.
**Adjusted pre-tax profit definition – same adjustments as for EBITDA but also excluding extraordinary impairment.
***Adjusted EPS definition – same adjustments as for pre-tax profit but also excluding prior year tax charges.
Brusk Korkmaz, Chief Executive Officer, commented:
“We have yet again exceeded the market’s expectations and achieved another record year, delivering growth across all our core performance metrics. In doing so, our revenue growth for the last three years since listing has averaged 48% (CAGR), a performance of which we are incredibly proud. Cross-selling has continued to be a strong feature, and we have broadened our ability to maintain this trend having delivered our first acquisition during the year. This has provided us with a solid footing in the white-collar and permanent recruitment market, complementing our blue-collar labour supply services.
“Looking ahead, our confidence for FY 2025 is fuelled by a strong pipeline and a positive start to trading in Q1. We anticipate further organic growth across our continuing operations, while our recent equity raise of £8m provides us with a strong balance sheet with which to fund our ongoing, targeted M&A strategy. Add to this the fact that the outlook for the infrastructure sector remains buoyant and we are positive that we are well positioned for the year ahead.”
Hercules Site Services, is a leading technology enabled Labour Supply company for the UK infrastructure sector.
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.
