AGM Statement

25 May 2022

 Hercules Site Services plc 

("Hercules" or "the Company")

AGM Statement

Hercules Site Services plc (AIM: HERC), a leading technology enabled labour supply company for the UK infrastructure sector, will hold its Annual General Meeting ("AGM") today at 2.00 p.m. where the Company's Non-Executive Chairman, Henry Pitman, will provide the following statement:

"We are delighted to welcome you to our inaugural AGM on the back of a transformative year for Hercules in 2021. We are extremely proud to have joined some of the world's leading businesses by listing on the AIM market of the London Stock Exchange in February 2022. We expect to see a step up in our growth, driven by highly favourable market conditions and our multi-year contract as part of the integrated labour desk which is expected to supply at least 4,000 workers to the HS2 Phase 1, northern section, over the life of the project. 

"This HS2 contract is an important milestone for Hercules, which has prompted significant investment in our business during H1 2022. The successful contract award is testament to the strong blue chip customer base secured over the past 14 years, and to the strength of our technology-enabled offering, which we believe differentiates us from other labour supply services in the market today. I am pleased to report that the delivery of the contract has started well and we are excited to be ramping up activity in response to increasing labour demand.

"The high utilisation we are experiencing for our suction excavator fleet is also driving growth. Our suction excavators have received significant industry acclaim for implementing innovative new techniques, which improve the health and safety of employees and reduce our client's costs. Our suction excavator services complement the Company's core labour supply business and civil projects delivery division and enable us to offer a range of services under one roof. In April 2022, we took the decision to acquire an additional ten suction excavators, which will expand our fleet from 20 vehicles by August 2022, to 30 vehicles by March 2023 and will make it one of the largest fleets in the UK.

"In summary, the Board of Hercules is confident that the outlook for the Company is bright. Of course, we are closely monitoring the headwinds the wider economy is facing, especially rising inflation, but we remain positive, given that we are experiencing unprecedented demand for our services due to the multi-billion-pound infrastructure commitments made by the UK government and private enterprises. We have a strong pipeline of work and we are being contracted for projects outside of our core verticals, such as laying fibre-optic broadband cables. We believe this is due to the Company's excellent reputation as a leading provider of labour supply, an in-built competitive edge through our embrace of digital technology and our hard-working team who are passionate about what they do. 

"We thank our shareholders and all our stakeholders for their support and look forward to providing updates on our progress as we focus on applying ourselves to the exciting growth opportunities ahead of us."

Additionally, the Company expects to announce its interim results for the six months ended 31 March 2022 during the week commencing 6 June 2022.

-ENDS-

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About Hercules Site Services plc

Hercules is a leading tech enabled labour supply company for the UK infrastructure sector. Founded in 2008, Hercules has an established track record of profitability and fast-growth and has built a blue-chip customer base which includes Balfour Beatty, Costain, Kier, Skanska, Dyer & Butler and Volker Fitzpatrick. The Company has been appointed to provide labour for a range of high-profile infrastructure projects, such as HS2, due to its agile, innovative, digital first approach and complete service offering. It is well-placed to benefit from any government increase in infrastructure spending and its experienced management team has identified multiple opportunities for growth.