Hercules Site Services to sell off excavator business

Construction group Hercules Site Services is planning to sell its Suction Excavator business, which will “materially reduce” its debt levels.

The Suction Excavator business amounted to less than 5% of the group’s revenue, but 88% of its consolidated debt, excluding invoice discounting.

It is now a non-core activity, the AIM-listed group said, and the planned divestment will enable it “to dedicate greater resources to deliver on its strategy to capitalise on the continued high-growth opportunities available to Hercules’ core Labour Supply business”.

Although its share price has dipped since its year-highs in September, it has still gained 70% in the past 12 months, recovering around half of the losses seen in 2023.

Hercules Site Services will publish its 2024 financial results next Monday, which are expected to show revenue up by around one-quarter, to more than £105m.

The sale of Suction Excavators, when completed, is expected to contribute to higher profit before tax, improved earnings per share, and enhanced returns for shareholders in the near future.

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