Hercules Site Services PLC on Monday said it has raised £1.7 million through a placing of 3.8 million shares priced at 45 pence each.

The price of the shares represents a 24% discount to Friday’s closing price of 59p. It shares were down 38% to 44.85p each in London on Monday afternoon.

Following admission of the new shares, 62.4 million company shares will be in issue. This is expected to take place on or around March 3.

The labour supply company for the UK infrastructure sector said it will use the proceeds to provide ‘working capital’ to support organic growth in its labour supply division.

Hercules added that the Labour Supply business is ‘growing rapidly.’ The company is currently engaged by the Balfour Beatty Vinci joint venture helping to deliver HS2 Phase 1, which is part of the largest infrastructure project in Europe.

‘With a strong 2023 pipeline in place, these funds will support further organic growth in our Labour Supply division, which represented over 67% of our revenue in 2022,’ said Chief Executive Brusk Korkmaz.

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