Hercules Site Services PLC (AIM:HERC) has sold its Suction Excavator business to SNC Holdings for £2.4 million in cash.
The deal immediately reduces Hercules’ debt and lease liabilities by around £9 million.
Although the division accounted for 88% of the company’s borrowings, it contributed less than 5% of total revenue.
By disposing of it, Hercules can focus fully on its Labour Supply operations, which support major UK construction and infrastructure projects in sectors like nuclear, energy, aviation, water, and rail.
The sale is expected to increase cash flow, improve profit before tax, and boost earnings per share.
The company also plans to use the extra cash and reduced debt to support future acquisitions and strengthen its position as a trusted supplier of skilled workers for large-scale UK projects.
"This is a hugely positive development for Hercules," said CEO Brusk Korkmaz.
"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."