SNC Holdings (NW), owned by Sean Quinn, now takes ownership of Hercules’ fleet of 30 suction excavator trucks.
It already owns suction excavator business Galvac as well as Suction Vacuum Excavation Southwest Ltd, Suction Excavation Southwest Ltd.
For Hercules, the divestment immediately reduces its debt and lease liabilities by £9m. The Suction Excavator business accounted for 88% of Hercules' borrowings but less than 5% of its revenue last year.
Hercules Site Services’ core business is the supply of labour to construction contractors. Freeing up cash flow will enable to concentrate more fully on its core business, it said, and help it to pursue acquisitions.
In the financial year to 30th September 2024, Hercules’ suction excavator subsidiary generated revenue of £6.0m and made a loss before tax of £0.4m (on a consolidated basis, the business had revenue of £5.1m and an adjusted loss of £1.3m). As at 30 September 2024 the subsidiary had a gross asset book value of £11.8m and net asset value of £2.2m.
Hercules chief executive Brusk Korkmaz said: "This is a hugely positive development for Hercules. As the UK carries out substantial construction and infrastructure upgrades within the nuclear, power and energy distribution, aviation, water, and rail sectors, our core labour supply business will now have greater resources to execute our strategy in these high-growth areas.
"This disposal gives the company a clearer identity and we are laser-focused on growth in our core sectors and strengthening our balance sheet. We expect our earnings per share and profit before tax to be enhanced for the benefit of shareholders."
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