Cotswold-based labour supply firm Hercules Site Services, headquartered in South Cerney, has successfully raised approximately £8 million through a combination of share placements and a strategic subscription. The company issued 16,197,213 new ordinary shares at 49.50p per share to achieve this result. This fundraising includes a £6 million placement of 12,156,809 shares to institutional and other investors, along with a £2 million subscription from a new strategic investor, Wasdell Packaging Ltd, controlled by Martin Tedham.
In addition to the new shares, Hercules announced that Hercules Real Estate Ltd (HRE), a company owned by CEO Brusk Korkmaz and his wife, is set to sell 6,060,606 shares at the same offer price to Wasdell Packaging Ltd. Following the sale and the completion of the fundraising, HRE will retain a 45% stake in Hercules, ensuring ongoing alignment with the company’s shareholders.
Hercules sees this successful capital raise as a significant vote of confidence, particularly in light of the scarcity of such placings in the UK market recently. The company believes it is well-positioned to benefit from various positive economic and political factors, such as the Labour government’s commitment to nuclear energy, planning reforms, and plans to build 1.5 million homes during the new parliamentary term.
The funds raised will support Hercules in strengthening its balance sheet, providing the financial flexibility to seize growth opportunities within the UK infrastructure and construction sectors. The company aims to expand both organically and through selective acquisitions.
Recent financial results show that Hercules has been on a strong upward trajectory, with revenue increasing by 70% year-on-year, rising from £49.5m to £84.6m for the year ending September 30, 2023. CEO Brusk Korkmaz expressed his optimism, stating that the improving macroeconomic environment is conducive to further growth in the infrastructure and construction industries. He also welcomed the addition of Martin Tedham to the board and Ged Mason to the company’s share register, noting their significant investments and shared confidence in Hercules’ future growth potential.
This significant fundraising marks a pivotal moment for Hercules Site Services, enabling the company to take full advantage of the promising outlook within the construction and infrastructure sectors in the UK. With strong investor backing, the firm is poised for further growth, both through organic means and strategic acquisitions.
Hercules Site Services plc (LON:HERC) is a collaborative, innovative company delivering services of the highest standards within the Civil Engineering sector of the construction industry. Hercules Construction Academy provides a comprehensive range of courses designed to equip individuals with the essential skills and knowledge required for a long and successful career in the construction industry.
