Construction labour supply group, Hercules Site Services, is to sell its suction excavator business to reduce debt and increase cash flow.
The decision comes after the suction excavator arm amounted to less than 5 per cent of the group’s revenue but 88 per cent of its consolidated debt in the year to 30 September 2024, making it a non-core activity for Hercules.
“The proposed divestment will enable the group to dedicate greater resources to deliver on its strategy to capitalise on the continued high-growth opportunities available to Hercules’ core Labour Supply business as the UK continues to carry out a series of substantial construction and infrastructure upgrades,” read a trading update this morning.
When complete, the sale is expected to contribute to near-term:
- higher profit before tax
- improved earnings per share
- enhanced returns for shareholders
Hercules also hopes the move will strengthen its market position as a labour supply specialist to various large-scale infrastructure schemes across the UK.
Last year the company completed its first acquisition, Future Build Recruitment Limited, expanding its exposure to the white-collar construction market.
Hercules Site Services’ FY2024 financial results will be announced on Monday 13 January, led by CEO Brusk Korkmaz and CFO Paul Wheatcroft.
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