Hercules founder nets £4m from IPO

Brusk Korkmaz, quids in

Hercules Site Services raised £8m from its initial public offering – £4m for Brusk Korkmaz, who founded the business in 2008, and £4m for the company’s coffers.

The company’s funds will be used 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 £29.6m at the placing price (50.5 pence).

Brusk Korkmaz, aged 42, 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.”

Based in Cirencester, Hercules Site Services had a track record of revenue growth until the pandemic struck – from £9.7m turnover in its 2015 financial year to £30.7m in 2019. In the year to 30th September 2020 it made a pre-tax profit of £1.1m on reduced turnover of £23m but has bounced back, with £14.0m revenue for the first half of 2021.

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