Hercules Site Services plc (LON:HERC), a leading technology enabled labour supply group for the UK infrastructure and construction sectors, has announced that it has successfully divested its Suction Excavator business, delivering on the strategy set out by the Company in the announcement dated 6 January 2025.
The Company’s Suction Excavator subsidiary has been sold to SNC Holdings (NW) Limited, for a total cash consideration of £2.4m. The divestment will materially reduce the Company’s debt and lease liabilities by approximately £9m immediately. The Suction Excavator business accounted for 88% of Hercules’ borrowings but less than 5% of its revenue in the Company’s financial statements ended 30 September 2024 (FY24).
The Company expects free cash flow to increase following the Disposal, enabling the Company to dedicate greater resources to delivering its strategy to capitalise on the high-growth opportunities available to Hercules’ core Labour Supply business, as the UK carries out a series of substantial construction and infrastructure upgrades within the nuclear, power and energy distribution, aviation, water, and rail sectors.
