- Hercules Site Services intends to make an AIM debut soon.
- The company aims to raise funds worth £10 million through the IPO.
Cirencester-based labour supply company for the UK infrastructure sector, Hercules Site Services PLC, is planning to get listed on the Alternative Investment Market (AIM) of the London Stock Exchange soon.
Hercules Site Services to float on AIM
Hercules Site Services, which delivers its services to the Civil Engineering sector of the construction industry, has expressed its intention to go for an AIM debut soon. The company aims to raise funds worth £10 million, out of which £5.5 million would be for the company itself, and the remaining £4.5 million for selling shareholders.
The date of admission has not been revealed yet by the company, but apart from placing shares for institutional investors. The nominated adviser and broker of the listing is SP Angel Corporate Finance LLP.
The funds raised through the IPO would be channelised by Hercules towards meeting the substantial demand for labour supply services being currently witnessed in the UK construction firms. In the northern section of the HS2 rail project, linking London to Birmingham, the demand is particularly high. The board of Hercules Site Services has stated that the company will follow an aggressive dividend policy once it’s admitted to AIM.
According to the company’s CEO, Brusk Korkmaz, this is the appropriate time to go for a listing as the business model of the company has proved to be efficient and profitable and the company has been discovering new exciting growth opportunities for the future growth.
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Hercules Site Services and its business
Founded in 2008, Hercules Site Services is a leading provider of skilled labour supply services, which is engaged in offering digital solutions for workforce management and construction recruitment for civil projects. The company aims to provide high-quality, efficient services to its customers and become a reliable partner to leading construction firms in the industry. The major clients of Hercules include Kier Group PLC, Balfour Beatty PLC, and Costain Group PLC.
Hercules offers solutions to an array of sectors in the construction industry, ranging from suction excavators to general labour for a highways project. Apart from general civils and highways, it also focuses on sectors like utilities, railways, power and energy.
The Covid-19 pandemic had a negative impact on the revenues of the company as the construction industry was hit with restrictions, but Hercules’s performance improved in 2021, with its revenue for the first half of 2021 going up to £14 million.
The revenue and performance of Hercules Site Services have witnessed a good bounce back to normalcy, and its decision to go for a listing can potentially help in further growth and expansion. The listing date and price band haven’t been announced yet by the company; once it is officially announced, investors can buy shares on the exchange. More details and updates could be referred from company website.
(Note: IPO information provided here are as of 21 January 2022)