Hercules Site Services PLC Nuneaton Lease Agreement (6530X)
August 31 2022 - 2:00AM
UK Regulatory
TIDMHERC
RNS Number : 6530X
Hercules Site Services PLC
31 August 2022
31 August 2022
Hercules Site Services plc
("Hercules" or the "Company")
Nuneaton Lease Agreement
Hercules Site Services plc (AIM: HERC), a leading technology
enabled labour supply company for the UK infrastructure sector, is
pleased to announce that it has entered into a lease agreement for
an industrial site in Nuneaton in the West Midlands (the "Lease
Agreement"), circa 15 miles from the HS2 phase 1 (northern section)
site.
Looking ahead to the medium term, it is expected that the
Hercules Training Academy will be constructed on the site. The aim
of the training academy is to reduce external training costs for
the Company, to ensure high skill levels and quality across the
Hercules workforce, and to provide specific training for clients
across the infrastructure and construction industries (not just
limited to HS2). This will generate further income streams for the
Company and will also enable Hercules to provide training to
upskill workers to fulfil additional roles on client construction
sites.
Hercules will initially utilise the site for storing plant,
machinery and suction excavators as the Company continues to supply
labour for the construction of HS2 phase 1 in the West Midlands
area around Birmingham. With Hercules headquartered in Cirencester,
management believes that it can deliver efficiencies and cost
savings by locating this site near to the Company's operations at
the HS2 sites through reduced travel times and storage costs, among
other things.
In addition, the facility will be used by the Company's civil
projects team to service new fibre broadband work in the East
Midlands region and for general training purposes, whilst also
providing a more northerly base for Hercules' suction excavator
business.
Under the terms of the Lease Agreement, the annual rent payable
by Hercules is GBP100,000 per annum and the lease term is for 18
years. This lease will be shortened when construction of the
training academy is completed, with rent to be agreed at market
rates. The site covers an area of circa 2,800 sq/meters of yard
space and industrial units.
The site is being leased from Hercules Real Estate Limited
("HRE"), a substantial shareholder and related party of the
Company. Brusk Korkmaz, Hercules' Chief Executive Officer, is a
director of HRE and the majority shareholder. It is the intention
of HRE to finance the construction of the training academy and the
planning process has already begun.
Henry Pitman, Non-Executive Chairman of Hercules, commented: "We
are very pleased to have entered into this agreement with HRE as it
marks the first step in the Company's stated strategy to develop a
training academy to provide much needed skills for the
infrastructure sector in a bid to help tackle the UK's skills
shortage. We believe the site in the West Midlands will provide the
Company with an important base for the region and the north of
England, where Hercules is experiencing an increase in work across
all business areas. We look forward to providing further updates as
this important project progresses."
Related Party Transaction
The Lease Agreement is a related party transaction for the
purposes of Rule 13 of the AIM Rules for Companies. The directors
independent of the Lease Agreement (being all directors except
Brusk Korkmaz) consider, having consulted with SP Angel Corporate
Finance LLP, the Company's Nominated Adviser, that the terms of the
Lease Agreement are fair and reasonable in so far as Hercules'
shareholders are concerned.
For further information and enquiries, please contact:
Hercules Site Services plc c/o SEC Newgate
Brusk Korkmaz (CEO)
Paul Wheatcroft (CFO)
SP Angel (Nominated Adviser and Broker)
Matthew Johnson / Adam Cowl / Harry Davies-Ball
(Corporate Finance) +44 (0) 20 3470
Grant Barker / Rob Rees (Sales and Broking) 0470
SEC Newgate (Financial PR) +44 (0) 20 3757
Elisabeth Cowell / Ian Silvera / Max Richardson 6882
Hercules@secnewgate.co.uk
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.
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