Hercules Site Services Plc (HERC) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 4.47%
• Average Volume (3M): 50.41K
• Price to Earnings (P/E): 21.6
• Beta (1Y): 0.07
• Revenue Growth: 11.70%
• EPS Growth: 79.80%
• Country: UK
• Employees: 758
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.02
• Shares Outstanding: 79,619,630
• 10 Day Avg. Volume: 62,903
• 30 Day Avg. Volume: 50,414
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £49.00
• Price Target Upside: 27.27% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: 49.00p ▲(27.27% Upside)

Hercules Site Services Plc scores well due to its strategic acquisitions and positive corporate developments, which suggest potential for future growth. However, challenges with profitability and leverage, along with technical indicators showing bearish momentum, moderate the overall score.

Hercules Site Services Plc Business Overview & Revenue Model

Company Description

Hercules Site Services Plc engages in general construction and civil engineering for construction industry. The company offers labour supply, as well as delivers civils projects; hires suction excavators and other plants; and provides digital solutions for construction recruitment and workforce management. It serves the general civil, highway, utility, power and energy, and railways sectors. The company was incorporated in 2008 and is based in Cirencester, the United Kingdom.

How the Company Makes Money

Hercules Site Services generates revenue primarily through its core offerings in labor supply and equipment rental. The company charges clients for skilled labor on a contract basis, which can include hourly rates or project-based fees, depending on the complexity and duration of the work. Additionally, HERC earns income from renting out construction equipment and machinery, which provides a steady stream of revenue as clients require these resources for varying project timelines. The company's partnerships with construction firms and its reputation for reliability also contribute to its earnings by ensuring repeat business and long-term contracts. Furthermore, HERC may benefit from government infrastructure projects and private sector investments in construction, which can lead to increased demand for its services.

Hercules Site Services Plc Financial Statement Overview

Summary

Hercules Site Services Plc has shown impressive revenue growth but faces challenges with profitability and leverage. The improvement in cash flows is a positive sign, but maintaining sustainable profitability and reducing reliance on debt remain critical for future financial stability.

Income Statement

The company has shown consistent revenue growth over the years, with a notable increase from 2019 to 2024. However, the gross profit margin has been declining, and the company posted a net loss in 2024, indicating challenges in controlling costs and achieving profitability. The EBIT and EBITDA margins have shown some improvement, but profitability remains a concern.

Balance Sheet

The debt-to-equity ratio has improved, but remains relatively high, indicating leverage risk. The company's equity ratio suggests a moderate reliance on equity financing. Return on equity has been negative recently, reflecting the net loss, which poses a risk to investors.

Cash Flow

The company has demonstrated significant improvement in operating cash flows and free cash flow over the past year, indicating effective cash management. However, the reliance on financing activities for cash flow stability in earlier years highlights potential liquidity risks.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	101.93M	84.66M	49.55M	32.75M	22.90M
Gross Profit	14.97M	16.32M	9.78M	6.69M	4.25M
EBITDA	4.37M	3.83M	1.75M	1.47M	1.47M
Net Income	-1.67M	770.00K	320.85K	-56.20K	752.19K
Balance Sheet
Total Assets	47.52M	47.68M	33.90M	19.35M	17.72M
Cash, Cash Equivalents and Short-Term Investments	6.39M	4.15M	1.21M	1.74M	2.33M
Total Debt	12.67M	26.94M	19.46M	10.69M	6.04M
Total Liabilities	35.81M	39.03M	27.06M	15.91M	11.40M
Stockholders Equity	11.71M	8.66M	6.84M	3.44M	6.32M
Cash Flow
Free Cash Flow	5.75M	3.45M	-5.56M	-1.96M	3.22M
Operating Cash Flow	6.07M	3.83M	-5.33M	-1.60M	3.45M
Investing Cash Flow	-1.41M	-207.62K	289.35K	-338.12K	-192.04K
Financing Cash Flow	-2.12M	48.10K	4.79M	1.39M	-2.22M

Hercules Site Services Plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 38.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HERC, the sentiment is Negative. The current price of 38.5 is below the 20-day moving average (MA) of 39.56, below the 50-day MA of 40.94, and below the 200-day MA of 45.09, indicating a bearish trend. The MACD of -0.77 indicates Negative momentum. The RSI at 34.76 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:HERC.

Hercules Site Services Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BILN	74 Outperform	43.65M	5.21	15.60%	7.25%	-14.67%	-19.63%
RNWH	72 Outperform	638.79M	14.11	20.14%	2.40%	3.23%	2.00%
HERC	67 Neutral		21.63	23.37%	4.47%	11.70%	79.80%
VANL	61 Neutral	40.03M	21.51	3.38%	3.24%	-6.46%	-56.20%
NEXS	48 Neutral	12.29M	-3.85	-9.22%	2.21%	-3.17%	69.15%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Hercules Site Services Plc Corporate Events

Hercules plc Announces Live Q&A on Advantage NRG Acquisition

Hercules plc announced that its CEO, Brusk Korkmaz, and CFO, Paul Wheatcroft, will host a live Q&A session on July 3, 2025, to discuss the recent acquisition of Advantage NRG Ltd. This session aims to engage with existing and potential shareholders, providing insights into the acquisition’s impact on the company’s operations and market positioning.

Hercules Site Services Expands into Power Sector with Advantage NRG Acquisition

Hercules Site Services Plc has announced the acquisition of Advantage NRG Ltd, a specialist in supplying skilled linesmen for overhead electrical transmission lines, for a total consideration of up to £15.7 million. This strategic acquisition marks Hercules’ entry into the power and energy sector, aligning with the UK’s efforts to upgrade its electricity infrastructure to meet rising demand and net-zero targets. The acquisition is expected to enhance Hercules’ margins and earnings, while also expanding its training capabilities and workforce, addressing the shortage of qualified workers in the UK.

Hercules plc Achieves Record Revenue and Strategic Growth in H1 2025

Hercules plc reported strong interim results for the first half of 2025, with record revenue of £54.6 million, an 18% increase year-on-year, driven by its labour supply division. The company also saw a significant rise in adjusted EBITDA and pre-tax profit, alongside a strategic divestment of its Suction Excavator subsidiary, which reduced debt and supported its acquisition strategy. Hercules is well-positioned to capitalize on the positive outlook in the infrastructure sector, with ongoing projects like Sizewell C and HS2, and a robust pipeline of future opportunities.

Hercules plc Expands Training Capabilities with Acquisition of Quality Transport Training

Hercules plc has acquired Quality Transport Training Ltd, enhancing its training capabilities through the Hercules Academy. This acquisition allows Hercules to expand its training operations, addressing the UK’s need for a skilled workforce in the infrastructure sector, and aligns with its strategic growth through mergers and acquisitions.

Hercules Site Services Rebrands to Hercules plc

Hercules Site Services plc has announced a name change to Hercules plc, effective immediately, as part of a strategic move to simplify its brand. The change reflects the company’s focus on labour supply in the construction and infrastructure sectors in the UK, and it aims to continue growing its services. The name change has been registered with Companies House and notified to the London Stock Exchange, with trading under the new name commencing on 21 May 2025. Shareholders will not be affected by this change, and existing share certificates remain valid.

Hercules Site Services Reports Strong Revenue Growth Amidst UK Infrastructure Investments

Hercules Site Services plc reported a 17% increase in revenue for the first half of the financial year, reaching over £54 million, driven by strong performance at key UK infrastructure sites and government support. The company is well-positioned to benefit from significant investments in the water sector, highlighting its strategy to focus on labor supply and civil projects, and anticipates continued growth throughout 2025.