Hercules Site Share Price (HERC)

We hosted a webinar given by Brusk Korkmaz (CEO and Founder) and Paul Wheatcroft (CFO) of Hercules Site Services on 8th February 2024. Management discussed recent Full Year numbers which included record results and the importance of its newly opened Construction Academy.

The team provided a financial overview, discussed the company's growth strategy, and commented on current trading. Management also answered an extensive range of questions submitted by viewers.

The full video is available to watch below, divided into chapters for ease of viewing:

0:00:03 Introduction from Brusk Korkmaz

0:02:45 Highlights of 2023 & revenue growth

0:08:17 Group Financial Overview (including Labour Supply and Construction Services)

0:24:55 Post Period End

0:31:58 Current Trading and Industry Outlook

0:34:03 Growth Strategy

0:36:37 Questions & Answers

Link to full video: https://www.equitydevelopment.co.uk/research/investor-presentation-with-qa-february-2024

It looks a decent company as long as they can find more work, get other projects outside of HS2

Gearing rate of 75% is still high though and I dont like the fact they raised capital either

I have been following this company, all debt is asset backed for the suction excavators and one of Hercules' divisions is the fastest growing Suction Excavator company, that's why the investment was made. They started seeing some returns on these investments so looking good for last years accounts and their forecast for the next years.

The debt and lease liabilites are scary if there is a massive downturn, £21 million in total, if companies dont pay on time, it could be a disaster.

This company is going places for certain, just listen to the value of those infrastructure projects, HERC will almost certainly benefit in a very significant way.

The market is yet to catch on as the company remains below radar, the dividend yield is circa 7% and very secure.

No wonder brokers have target prices in excess of 50p.