Hercules Site Services completes disposal of Suction Excavator arm

(Alliance News) - Hercules Site Services PLC on Tuesday said it has completed the disposal of its Suction Excavator business for a total of GBP2.4 million.

The Cirencester, England-based labour supplier for the UK infrastructure and construction sectors said the subsidiary was sold to SNC Holdings (NW) Ltd in a deal set to "materially reduce the company's debt and lease liabilities by approximately GBP9 million immediately".

The Suction Excavator business had accounted for 88% of Hercules' borrowings, the group said, and for less than 5% of its revenue in its most recent financial year that ended September 30. Suction Excavator also generated a pretax loss of GBP400,000 in financial 2024, on revenue of GBP6.0 million.

Hercules said that proceeds from the sale will support its ongoing acquisition strategy, as well as help deliver increased pretax profit and earnings per share.

"This is a hugely positive development for Hercules," said Chief Executive Officer Brusk Korkmaz. "As the UK carries out substantial construction and infrastructure upgrades within the nuclear, power and energy distribution, aviation, water and rail sectors, our core Labour Supply business will now have greater resources to execute our strategy in these high-growth areas.

"This disposal gives the company a clearer identity and we are laser-focused on growth in our core sectors and strengthening our balance sheet. We expect our earnings per share and pretax profit to be enhanced for the benefit of shareholders."

Shares in Hercules Site Services were up 4.2% at 53.15 pence in London on Tuesday afternoon.

By Emily Parsons, Alliance News reporter

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