Hercules’ FY24 results confirm another record year, with revenue now over £100m as the impressive growth trajectory continues. The results are ahead of expectations, particularly at the PBT and earnings level. The planned divestment of the Suction Excavators business will allow the Group to focus on its core, capital light businesses, which have significant organic growth potential, demonstrated by our upgraded forecasts for FY25 and FY26.
With earnings momentum building, Hercules’ valuation looks highly attractive on a P/E rating of 12x for FY25 (based on our forecast for the continuing operations). We retain our conviction in the investment case and our 70p Fair Value estimate.