THIS ANNOUNCEMENT, INCLUDING THE INFORMATION CONTAINED IN IT IS RESTRICTED AND IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, OR THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH SUCH PUBLICATION, RELEASE OR DISTRIBUTION WOULD BE UNLAWFUL. PLEASE SEE THE IMPORTANT NOTICE WITHIN THIS ANNOUNCEMENT.

THIS ANNOUNCEMENT DOES NOT CONSTITUTE OR FORM A PART OF ANY OFFER OR SOLICITATION TO PURCHASE OR SUBSCRIBE FOR, OR OTHERWISE INVEST IN, SHARES TO ANY PERSON IN AUSTRALIA, CANADA, JAPAN, SOUTH AFRICA OR THE UNITED STATES (INCLUDING ITS TERRITORIES AND POSSESSIONS, ANY STATE OF THE UNITED STATES AND THE DISTRICT OF COLUMBIA) OR IN ANY JURISDICTION TO WHOM OR IN WHICH SUCH OFFER OR SOLICITATION IS UNLAWFUL. THE OFFER AND SALE OF ORDINARY SHARES REFERRED TO HEREIN HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE US SECURITIES ACT OR UNDER THE APPLICABLE SECURITIES LAWS OF AUSTRALIA, CANADA, JAPAN OR SOUTH AFRICA. THE ORDINARY SHARES REFERRED TO HEREIN MAY NOT BE OFFERED OR SOLD IN AUSTRALIA, CANADA, JAPAN OR SOUTH AFRICA OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, ANY NATIONAL, RESIDENT OR CITIZEN OF AUSTRALIA, CANADA, JAPAN OR SOUTH AFRICA. THERE HAS BEEN AND WILL BE NO PUBLIC OFFER OF THE ORDINARY SHARES IN AUSTRALIA, CANADA, JAPAN, SOUTH AFRICA OR THE UNITED STATES.

INVESTORS SHOULD NOT SUBSCRIBE FOR OR PURCHASE ANY SECURITIES REFERRED TO IN THIS ANNOUNCEMENT EXCEPT ON THE BASIS OF INFORMATION IN THE ADMISSION DOCUMENT PUBLISHED BY HERCULES SITE SERVICES PLC IN CONNECTION WITH THE PROPOSED ADMISSION OF ITS ORDINARY SHARES TO TRADING ON AIM WHICH IS AVAILABLE ON THE COMPANY'S WEBSITE AT WWW.HERCULES-CONSTRUCTION.CO.UK SUBJECT TO CERTAIN ACCESS RESTRICTIONS.

4 February 2022

Hercules Site Services plc 

("Hercules" or "the Company")

Admission to Trading and First Day of Dealings

Hercules Site Services plc, a leading technology enabled labour supply company for the UK infrastructure sector, is pleased to announce the admission of its ordinary shares ("Ordinary Shares") to trading on the AIM market of the London Stock Exchange at 8.00 a.m. today under the ticker HERC ("Admission"). The ISIN of the Ordinary Shares is GB00BPVBVZ82.

The Admission follows a subscription, institutional placing and retail offer via PrimaryBid which raised in aggregate £8 million at a placing price of 50.5 pence per share. £4 million (gross) has been raised for the Company and £4m for the existing shareholder from the sale of part of its interest in the Company. The funds raised for the Company will be used to rapidly deliver on the significant demand Hercules is experiencing for its diverse range of services across the UK infrastructure sector, including to scale-up its operations to supply labour to the northern section of the HS2 rail project from London to Birmingham (Phase One). Upon Admission, Hercules will have a market capitalisation of approximately £29.6 million at the placing price.

Hercules Highlights:

·    Hercules is a profitable and rapidly-growing labour supply company operating in the UK infrastructure sector with a strong pipeline of projects.

·    Founded in 2008, Hercules' agile, innovative, digital-first approach and wide range of services has helped attract the Company's blue-chip client base including Balfour Beatty, Skanska, Costain and Kier.  

·    The Company has significant cross-selling capabilities. As well as labour supply, it provides complementary project delivery services and specialist plant hire (suction excavators) which can increase the total value from client relationships.

·    Hercules has a sustained track record of revenue growth from £9.7 million in FY 2015 to £30.7 million in FY 2019 and has experienced a strong rebound following Covid-19 growing to £14.0 million in H1 FY 2021.

·    Hercules has a compelling, growing market opportunity: nearly £650bn of investment is planned on UK infrastructure and construction projects over the next 10 years. This, combined with the current labour deficit, has resulted in workforce supply being given much higher importance on the industry's agenda.

·    The Directors believe Hercules is well-placed to gain market share as it is proven to attract a loyal workforce and blue-chip client base due to its award-winning app, digital capabilities and training/health & safety focus, which the Directors believe differentiates it from the competition.

·    Hercules has a defined strategy with multiple growth opportunities, including organic expansion and market penetration of its existing businesses, the continued development of its data and analytics platform, and the integration of targeted acquisitions in what is a highly fragmented sector.

·    The Board intends to adopt a progressive dividend policy for the Company from Admission, which will seek to maximise shareholder value and reflect the Company's strong earnings potential and cash flow characteristics.

·    SP Angel Corporate Finance LLP is acting as Nominated Adviser and Broker to the Company in relation to the placing and Admission.

Hercules CEO Brusk Korkmaz said: "Over the past 12 months we have achieved significant momentum and milestone contract wins, which has culminated in today's successful AIM listing. We hope to provide investors with exposure to both income and growth, and are delighted to welcome our new shareholders to the Hercules register.

"We have built Hercules to become a leading labour supply business over the past 13 years and our digital first approach has helped us attract major construction businesses to our client portfolio. Our proven and rapid delivery track-record has led to our work with our long-standing partner, Balfour Beatty, on HS2; this is expected to significantly step-change our growth in the next 12 months and beyond.

"This IPO will enable Hercules to capitalise on the rapidly growing opportunity in the labour supply market; the demand for skilled labour is higher than ever before due to the multi-billion infrastructure commitments made by the UK government and we are experiencing unprecedented demand for our services.

"Therefore, having identified multiple exciting growth opportunities, and proven the fast-growth and profitable nature of our business model, we believe that we are well-positioned to gain market share through organic expansion, cross-selling and acquisition opportunities."

Enquiries

The Company's Admission Document is available at: www.hercules-construction.co.uk.

IMPORTANT NOTICES

The information contained in this announcement is for background purposes only and does not purport to be full or complete. No reliance may be placed by any person for any purpose on the information contained in this announcement or its accuracy, fairness or completeness.

In the United Kingdom, this announcement is being distributed only to, and is directed only at, persons who: (A) (i) are "investment professionals" specified in Article 19(5) of the Financial Services and Markets Act (Financial Promotion) Order 2005 (the "Order") and/or (ii) fall within Article 49(2)(a) to (d) of the Order (and only where the conditions contained in those Articles have been, or will at the relevant time be, satisfied); and (B) are "qualified investors" within the meaning of Article 2(e) of the Prospectus Regulation (Regulation (EU) 2017/1129) as it forms part of UK law by virtue of the European Union (Withdrawal) Act 2018 (all such persons together being referred to as "Relevant Persons"). In the European Economic Area (the "EEA"), this announcement is addressed only to and directed only at, persons in member states who are "qualified investors" within the meaning of Article 2(e) of the Prospectus Regulation (Regulation ((EU) 2017/1129) ("Qualified Investors"). This announcement must not be acted on or relied on (i) in the United Kingdom, by persons who are not Relevant Persons, and (ii) in any member state of the EEA, by persons who are not Qualified Investors. Any investment or investment activity to which this announcement relates is available only to: (i) in the United Kingdom, Relevant Persons; and (ii) in any member state of the EEA, Qualified Investors, and will be engaged in only with such persons.

This announcement may include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements may be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "plans", "projects", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These statements reflect beliefs of the Directors (including based on their expectations arising from pursuit of the Company's strategy) as well as assumptions made by the Directors and information currently available to them. Although the Directors consider that these beliefs and assumptions are reasonable, by their nature, forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause Hercules actual financial condition, results of operations, cash flows, liquidity or prospects to be materially different from any future such metric expressed or implied by such statements. Past performance cannot be relied upon as a guide to future performance and should not be taken as a representation that trends or activities underlying past performance will continue in the future. Forward-looking statements speak only as of the date they are made. Forward looking statements may and often do differ materially from actual results. No representation is made or will be made that any forward-looking statements will come to pass or prove to be correct.

Any subscription or purchase of Ordinary Shares should be made solely on the basis of information contained in the Admission Document. The information in this announcement is subject to change. Before subscribing for or purchasing any Ordinary Shares, persons viewing this announcement should ensure that they fully understand and accept the risks which are set out in the Admission Document. No reliance may be placed for any purpose on the information contained in this announcement or its accuracy or completeness. Neither this announcement, nor anything contained herein, shall form the basis of or constitute any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for any Ordinary Shares or any other securities nor shall it (or any part of it) or the fact of its distribution, form the basis of, or be relied on in connection with, any contract therefor.

You should not base any financial decision on this announcement. Acquiring investments to which this announcement relates may expose an investor to a significant risk of losing all of the amount invested.

Persons considering making investments should consult an authorised person specialising in advising on such investments. This announcement does not constitute a recommendation concerning the Ordinary Shares. The value of the Ordinary Shares could decrease as well as increase. Potential investors should consult a professional advisor as to the suitability of any investment in Ordinary Shares for the person concerned. Nothing contained herein constitutes or should be construed as investment, tax, financial, accounting or legal advice or a representation that any investment or strategy is suitable or appropriate to your individual circumstances.

Unless otherwise indicated, market, industry and competitive position data are estimates (and accordingly, approximate) and should be treated with caution. Such information has not been audited or independently verified, nor has the Company ascertained the underlying economic assumptions relied upon therein. Certain data in this announcement, including financial, statistical and operating information has been rounded. As a result, the totals of data presented in this announcement may vary slightly from the actual arithmetic totals of such data. Percentages may have been rounded and accordingly may not add up to 100%.

For the avoidance of doubt, the contents of the Company's website or any other website are not incorporated by reference into, and does not form part of, this announcement.

SP Angel, which is authorised and regulated by the Financial Conduct Authority in the United Kingdom, is acting exclusively for the Company and no-one else in connection with Admission. SP Angel will not regard any other person as its client in relation to Admission and will not be responsible to anyone other than the Company for providing the regulatory protections afforded to its clients, nor for providing advice in relation to the contents of this announcement or any transaction, arrangement or other matter referred to herein.

Neither SP Angel, nor any of its affiliates or any of its directors, officers, employees, advisers, agents or any other person accepts any responsibility or liability whatsoever for, or makes any representation or warranty, express or implied, as to the truth, accuracy, completeness or fairness of the information or opinions contained in this announcement (or whether any information has been omitted from the announcement) or any other information relating to the Company, its subsidiaries or associated companies, whether written, oral or in a visual or electronic form, and howsoever transmitted or made available or for any loss howsoever arising from any use of this announcement or its contents or otherwise arising in connection therewith and any liability therefore is expressly disclaimed.