Hercules Site Services PLC (AIM:HERC) has secured a spot on Wessex Water’s new civils support framework, marking a significant win for the UK-based labour supply and civil projects company.
The agreement will see Hercules provide additional civil engineering resources through both its Labour Supply and Civil Projects divisions.
The work will support Wessex Water’s internal programme delivery and capital maintenance activities across its water and wastewater infrastructure.
Wessex Water, one of the top-rated utilities in the country according to industry regulator Ofwat, supplies drinking water to around 1.4 million people and sewage services to about 2.9 million in the southwest of England.
The utility has committed to a substantial investment programme worth £3.65 billion over the 2025 to 2030 period, more than double the £1.5 billion spent in the previous five-year cycle.
The new civils support framework is divided into five lots, covering site works, main laying, potable and wastewater infrastructure, and reservoirs. The contract runs for an initial five years with the option to extend for an additional three.
"It's great to see our Labour Supply and Civil Projects division going from strength to strength. With the water industry facing and addressing enormous challenges, our Civil Projects team has leveraged its experience to work with important partners throughout the industry," said Brusk Korkmaz, CEO of Hercules.
"We are delighted to join Wessex Water's Civils Support Framework. Wessex Water is a top-performing water and sewage company as measured by Ofwat and we look forward to working closely with them."
The shares marked time at 49p each, but Cavendish reckons there's further to go for the stock, setting a price target of 70p.
On Monday's announcement, the broker said: "The agreement leverages Hercules' technical expertise and resources in multiple infrastructure areas, providing steady workflow across its complementary business divisions."
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