8th Jun 2022 09:28
(Alliance News) - Cirencester, England-based Hercules Site Services PLC on Wednesday said revenue has climbed 42%, following its initial public offering in February.
Shares in the labour supply company for the infrastructure sector were up 6.4% to 58.00 pence each in London on Wednesday morning.
Hercules Site Services began trading on London's AIM market in February, at a price of 50.5p per share. On its AIM debut, the company raised gross proceeds of GBP4 million.
Shares are currently 8.4% ahead of this IPO price.
In the six months that ended March 31, revenue rose by 42% to GBP19.9 million, from GBP14.0 million year-on-year. Revenue from all income streams increased year-on-year, the company said. Labour supply revenue was up 27%, civil projects revenue increased 80%, and sales from suction excavator services more than doubled.
However, Hercules sunk to a pretax loss of GBP383,000, compared to a profit of GBP739,000 in the first half of last year. Hercules blamed one-time IPO costs of GBP414,000; in the first half of 2021, non-recurring expenses were just GBP58,000 by comparison.
Amid the strong revenue growth, Hercules declared an interim dividend of 0.6 pence, though 71% shareholder Hercules Real Estate Ltd has waived its entitlement to the payment.
Looking forward, Hercules Site Services said it is "well positioned for the step-change in growth" highlighted at the time of the IPO.
Hercules also highlighted its "significant pipeline", including its HS2 contract, which will come to fruition in the next six months.
HS2 is the high-speed rail link being constructed between Birmingham and London.
Chief Executive Brusk Korkmaz added: "We expect to deliver continued growth in H2 2022 through the ramp up of operatives on HS2, the delivery and monetisation of seven more suction excavators, and maintaining the significant momentum built up by the civil projects team."
By Sophie Rose; [email protected]
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