Hercules Site Services PLC (AIM:HERC), the labour supply specialist for construction and infrastructure projects, has announced plans to sell its suction excavator division, deeming it a non-core activity.
The operation contributed less than 5% of group revenue last financial year but accounted for 88% of consolidated debt, excluding invoice discounting.
The sale is expected to significantly reduce debt, boost cash flow, and allow Hercules to focus on its core labour supply business.
In the update, the company also said the divestment would enhance profitability, earnings per share, and shareholder returns.
It also aims to strengthen the company's role in providing skilled workers for major infrastructure projects, including rail, roads, and energy networks.
Results for the financial, reflecting the division as discontinued operations, will be released on January 13. An investor presentation will accompany the announcement. You can sign up here.