City round-up: Northcoders; Genedrive; Strix

Northcoders, which provides training programmes for software coding from its regional hubs in Manchester and Leeds, said it delivered a strong performance in the first eight months of its financial year, to August 2021.

In its maiden trading update following admission to AIM on July 27, it said the group is trading comfortably in line with management expectations in terms of both revenue and underlying profitability.

At the end of August, contracted revenue for the current financial year was approximately 90% of the target revenue for the year.

In addition, cashflow has benefited from the additional course funding available from the group’s contract under the Department for Education’s Lifetime Skills Guarantees and Plan for Jobs initiative secured in July 2021.

Consumer demand for the group’s core Bootcamp courses is growing strongly. Applications from individuals have been boosted as the UK moves away from the COVID pandemic as more individuals look to change their careers. This is reflected in the period, as applications reach 162% of that experienced in the full year in 2019 – the most recent comparable period.

With the benefit of increased marketing spend following the fundraise at IPO, the board expects this growth in demand to continue as Northcoders continues to expand its list of hiring partners.

The national reach of Northcoders is expanding considerably, with the group’s apprenticeship division achieving contracts across the UK, from regions as far south as Plymouth and as far north as Darlington and Penrith, Cumbria.

The group plans further investment into its apprenticeships offering and is aiming to launch new technology products in the first quarter of 2022 which will diversify apprenticeship revenue streams from the group’s existing core coding and software focused programmes.

Northcoders’ corporate solutions division continues to attract new business with revenue for the year to date ahead of the 2020 full year revenue. Solutions contracts include bespoke training and software development contracts with Stockport-based Digital Applications, the independent IT solution delivery company, and with NHS Digital.

The board said it is also pleased that work with Ove Arup & Partners, the global professional services firm, continues for the third consecutive year.

Northcoders will release its half year results for the six months ended June 30, 2021 on Tuesday, September 28.

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David Budd

Genedrive, the Manchester-based molecular testing business, has carried out widespread testing of its system platform used for the detection of Antibiotic Induced Hearing Loss (AIHL) in newborns.

The Genedrive MT-RNR1 test targets the m.1555A>G mutation genotype. If a baby carrying the mutation is given the antibiotic gentamicin, a common treatment for bacterial infections, it can cause lifelong deafness. In the UK, there are approximately 90,000 babies admitted to Neonatal Intensive Care Units (NICUs) each year who could benefit from this screening test.

A large scale implementation trial of the Genedrive test was performed on 750 newborns by Manchester and Liverpool Hospitals and concluded in November 2020. The trial represented the world’s first use of a genetic point of care test in a NICU setting. The results of this innovative trial have now been submitted by the study team for publication.

Extensive feedback was taken from more than 150 nurses who performed AIHL testing over the trial period and this has resulted in a number of refinements being made to the Genedrive unit design, principally to further enhance usability in a NICU setting.

The company will be seeking CE mark clearance for the new Genedrive system in the coming weeks prior to commercial launch

Chief executive, David Budd, said: “It has been very rewarding to see the positive effect of point of care AIHL testing, and the feedback and engagement of the NHS teams has been a tangible benefit to the company and will, ultimately, be a key driver of adoption in the market place.

“Following this refinement of the overall AIHL system, we are looking forward to the impending commercial launch and the improved healthcare outcomes it will offer as an innovative point of care test in a NICU care setting. Many children every year will be able to live profoundly different lives as a result of this successful development collaboration.”

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Mark Bartlett, Strix CEO (Credit: Twitter / Strix Group)

AIM-listed Strix Group has officially opened its new factory within Zengcheng district in Guangzhou, China, and said manufacturing is fully operational.

The Isle of Man-based group specialises in temperature control systems for kettles, but has diversified into water purification and disinfection solutions in the livestock farming industry in China, where it already operates manufacturing facilities.

The new factory will double the group’s current manufacturing capacity enabling it to grow the business and deliver its stated strategy of doubling revenues over the next five years. Efficiencies and further in-sourcing arising from the new manufacturing facility are expected to have a positive effect on margins.

The decision to invest in the construction of a new factory was taken by the board in 2018. The land was acquired in the summer of 2019 and external construction work began in late 2019, completing in December 2020.

Production and assembly lines were then installed facilitating the commencement of operations. The project has been completed on budget and to timetable.

Chief executive, Mark Bartlett, said: “This is a landmark moment in the history of Strix. I would like to thank everyone who helped in the construction of this factory, it is an outstanding achievement that has been accomplished, and all executed during a global pandemic, remaining on time and budget.

“I also want to thank all of our associates for ensuring our manufacturing, customer service and our quality never once deteriorated during the transition.

“I am extremely proud of what Strix has achieved since we listed on AIM in 2017, and this marks a significant milestone to support our commitment to double the group’s revenues over the next five years.”