Construction labour supply company, Hercules Site Services, has topped £100 million turnover for the first time as it targets further growth in the infrastructure market.
Revenue for the year ended 30 September 2024 was £107 million, up 28 per cent from £84.7 million the year prior, generating a gross profit of £17.4 million (FY2023: £16.4 million).
The result comes after Hercules announced it is to sell its suction excavator business to reduce debt and increase cash flow.
“We have yet again exceeded the market’s expectations and achieved another record year, delivering growth across all our core performance metrics,” said Brusk Korkmaz, CEO.
“In doing so, our revenue growth for the last three years since listing has averaged 48 per cent (CAGR), a performance of which we are incredibly proud.”
Across its labour supply and civil projects business, Hercules reported a 43 per cent increase in adjusted pre-tax profit with improved cash reserves too of £7.5 million (FY2023: £3.3 million).
“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,” Korkmaz continued.
“This has provided us with a solid footing in the white-collar and permanent recruitment market, complementing our blue-collar labour supply services.”
To support its growth plans, including labour supply to the infrastructure market following the acquisition of recruitment business Future Build, Hercules has also raised £8 million in private equity funding.
“Looking ahead, our confidence for FY2025 is fueled by a strong pipeline and a positive start to trading in Q1,” said Korkmaz.
“We anticipate further organic growth across our continuing operations, while our recent equity raise of £8 million 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.”
Last year Hercules saw record labour supply demand, delivering for more than 40 clients and 300 projects, including to HS2.
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