Northcoders to expand as corporates seek digital transformation skills
Tech training business Northcoders has told the markets this morning that demand has never been higher for its coding services as businesses prioritise digital transformation.
In the first full year of results since floating on the AIM market in July 2021, Northcoders posted pre-tax profits of £0.3 million (FY21: loss £0.5 million) on rising revenues of £5.6 million (FY21: £3.0 million).
Northcoders still holds £2.8m in cash following an over-subscribed placing in November 2022 which will enable the business to expand to new cities, creating an anticipated 50 new jobs in 2023.
The business offers courses in Software Engineering, Data Engineering and Platform Engineering, direct to corporate clients, but also to individuals looking to return to the workforce, or to upskill.
Northcoders Group ended 2022 with a permanent headcount of 101 members of staff compared to the 63 at the start of the year and the headcount at the end of March 2023 standing at 122, with more hires planned.
The Manchester-based company also has sites in Leeds, Newcastle and Birmingham and is now prioritising London, but has ditched plans to open physical hubs, post-pandemic.
Through online delivery Northcoders has created a presence in many more cities across the UK than planned, without the need for physical hubs and the expenditure that comes with them.
Major corporate partners including Rolls Royce, Disney, BBC, KPMG and Sage.
Consumer demand for bootcamp courses grew strongly and Northcoders was awarded £5.8m in Department for Education funding as part of a commitment by the government of £1.5 billion.
Chris Hill, chief executive of Northcoders, said: “We have had a successful year, significantly growing revenue and profitability, whilst keeping our core values at the heart of everything we do. A strategic priority was to create a presence in many regions across the UK, which has been achieved successfully during the period. We have also been able to focus on the expansion of our Business Solutions division, which has been an immense success with a number of major corporates onboarding and making repeat orders. Digital transformation is a growing priority for corporates, trying to find new and innovative ways of filling their teams and goals at a time of economic restraint, and Northcoders is incredibly well placed to satisfy this demand.
“In November 2022 we completed a placing, raising £2.1 million, which has enabled us to set out on our growth path of teaching more technical disciplines. We have experienced record demand and have navigated macro-economic challenges successfully and we are in a strong position for growth in FY23. The demand for Northcoders’ services has never been higher, with a record-breaking month in March 2023. With favourable market dynamics such as the UK government committing billions of pounds for the provision of skills bootcamps, Northcoders is well positioned to grow. The current year has started strongly, and at the end of the first quarter revenue visibility stood at £6.1 million, approximately 64% of target revenue for the year, and subsequently, the Board has every confidence for the Group’s prospects for the remainder of the year.”
