Last checked at 9 Oct 2023 07:00
9 October 2023
Hercules Site Services plc
("Hercules" or "the Company")
Five-year contract with Balfour Beatty Rail Limited
Contract will see Hercules recruit specialist rail labour on live track for the first time, opening up new opportunities for the Company.
Hercules Site Services plc (AIM: HERC), a leading technology enabled labour supply company for the UK infrastructure sector, is pleased to announce that it has been awarded a five-year contract, following a rigorous and highly competitive tender process, to provide Balfour Beatty Rail Limited ("Balfour Beatty Rail") with contingent labour resource which will enable it to deliver its commitments during Control Period 7 ("CP7"). This marks the launch of a new division within Hercules' Labour Supply business, focused on the provision of specialist rail labour on live track to clients.
CP7 is a £44 billion, five-year plan for the railway in England and Wales, which will run from 1 April 2024 to 31 March 2029. Network Rail's key priorities during this five-year period are to deliver upgrades that will tackle climate change and improve train performance from current levels. Balfour Beatty Rail has been awarded major contracts during CP7 to deliver work on behalf of Network Rail, Transport for Wales, and London Underground and Hercules is one of six suppliers contracted to support on labour.
Hercules CEO Brusk Korkmaz commented, "This contract provides Hercules with an exciting new revenue stream which has strong potential for continued growth.
"While we have previously provided personnel to deliver heavy civils and earthworks to pre-enable rail-based projects, this contract will see us recruit specialist rail labour on live track on behalf of a customer for the first time, opening up a wider range of opportunities for Hercules in the rail industry. Given that we have worked with Balfour Beatty Group for many years, this news also demonstrates our ability to grow our total customer value due to the quality of the services we provide.
"Additionally, it is important to highlight that the recent government announcement about the future of HS2 has no impact on our ongoing contracts for Phase One of HS2 between London and Birmingham. Our work at this project continues to build momentum as we supply more contractors to site and with the launching of our new technical rail specialism, we are well placed to capture more value from future rail infrastructure projects."
For further information and enquiries, please contact:
Hercules Site Services plc Brusk Korkmaz (CEO) Paul Wheatcroft (CFO) | c/o SEC Newgate |
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SP Angel (Nominated Adviser and Broker) Matthew Johnson / Adam Cowl / Harry Davies-Ball (Corporate Finance) Grant Barker / Rob Rees (Sales and Broking) | +44 (0) 20 3470 0470 |
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Cavendish Securities Plc (Joint Broker) Adrian Hadden / Charlie Combe (Corporate Finance) Dale Bellis (Sales) | +44 (0) 20 7397 8900
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SEC Newgate (Financial Communications) Elisabeth Cowell / Ian Silvera / Matthew Elliott | +44 (0) 20 3757 6882 Hercules@secnewgate.co.uk
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About Hercules Site Services plc
Hercules is a leading tech enabled labour supply company for the UK infrastructure sector. Founded in 2008, Hercules has an established track record of profitability and fast-growth and has built a blue-chip customer base which includes Balfour Beatty, Costain, Kier, Skanska, Dyer & Butler and Volker Fitzpatrick. The Company has been appointed to provide labour for a range of high-profile infrastructure projects, such as HS2, due to its agile, innovative, digital first approach and complete service offering. It is well-placed to benefit from any government increase in infrastructure spending and its experienced management team has identified multiple opportunities for growth.