Since floating on AIM, the alternative investment market of the London Stock Exchange, in February 2022, Hercules Site Services has grown its fleet of suction excavators from nine machines to 30.
The machines were very much a passion of company founder and chief executive of Brusk Korkmaz but the arrival of new investors in recent months have prompted a strategy shift.
The suction excavator business has now been deemed to be a non-core activity and is to be divested.
In the financial year to 30th September 2024, Hercules’ suction excavator business accounted for less than 5% of group revenue but 88% of its consolidated debt (excluding invoice discounting). Getting out will therefore substantially reduce debt levels and increase free cash flow.
The company said that the proposed divestment would enable it to dedicate greater resources to its core construction labour supply business.
When Hercules posts its 2024 results next week the suction excavator business results will be shown under discontinued operations.
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