This leading technology-enabled labour supply for the UK infrastructure sector raised £8m of fresh capital last Friday morning.
CEO Brusk Korkmaz stated that:
"We are delighted to have raised these funds from two successful entrepreneurs and institutional investors which will be used to further grow Hercules through both organic expansion and acquisitions, with the aim of driving profitability in the long run.
We believe the improving macro-economic environment means that the infrastructure and construction sector will go from strength to strength in the short to medium term, while the long-term outlook for the sector continues to be positive.
The Company is now well positioned to take full advantage of these encouraging tailwinds.
I am also very pleased to welcome Martin Tedham to the Board and Ged Mason to the Company's share register. Both have provided significant investment to the Company, and we are delighted they share our belief in the trajectory and potential of Hercules."
At the same time Korkmaz and his wife sold 6.06m shares at 49.5p each to Martin Tedham’s Wasdell Packaging business, chopping their holding down to 35.84m shares some 45% of the enlarged equity.
That is quite a neat exercise for Korkmaz and his business – but will it prove fruitful for his shareholders?
Analysts Peter Renton and Max Hayes at Cavendish Capital Markets have a 55p Price Objective on the shares.
They note that:
“The outlook remains very positive for Hercules in our view, with an improving macro-economic environment and the continued need for significant infrastructure investment in the UK over the coming years expected to ensure continued solid growth.”
(Profile 04.05.22 @ 52p set a Target Price of 64p*)
コメント