Hercules Site Services adds exposure to white-collar recruitment market with acquisition
Cirencester-based Hercules Site Services has acquired 60% of Brighton-based Future Build Recruitment for £1.251 million, in a deal which exposes the labour supply group to the construction sector's white-collar recruitment market.
Hercules has already built up a blue-chip customer base, which include the likes of Balfour Beatty, Costain and Kier, but this acquisition expands its exposure to a market, which consists of around 2.1 million workers or 6% of the total UK workforce, it said.
Future Build will be integrated into Hercules' labour Supply division.
"When we floated on AIM in February 2022, we stated our intentions to grow organically and through acquisitions which broaden our capabilities, accelerate growth and enhance our core offerings," said Brusk Korkmaz, chief executive of Hercules.
"Having tested the market opportunity in white-collar recruitment through organic growth initiatives, this deal expands our footprint in the white-collar recruitment market by bringing a highly regarded business and team into the company.
Future Build also provides Hercules with an established presence in the southeast, a region with good prospects for infrastructure and construction. It currently has 14 employees, which it aims to expand to 16 next year, and is focused on permanent recruitment for main contractors, house building, high-end residential, social housing and specialist sub-contractor sectors.
"I believe that Future Build will prove to be an excellent addition to the company and that this move will be beneficial to both Hercules' and Future Build's clients who will now be able to fulfil both white-collar and blue-collar recruitment opportunities through the same provider," added Korkmaz.
"It also means that the Future Build team will benefit from more exposure to the infrastructure market, which is expected to grow substantially over the next 15 years."
The consideration for the acquisition consists of £1,001,000 in cash and the issue of 994,431 shares at 25.14 pence per share. The cash will be financed through Hercules' existing cash resources.
In the year to end-December, 2022, Future Build generated revenues of £1,504,944 and posted profits before tax of £490,258.