£4.5m Government contract win for software coding training group
Software coding training provider, Northcoders, has secured further funding from the Government’s Department for Education Skills Bootcamps Wave 4 bid.
This new round of funding gives the business a further £4.5m to train individuals at its bootcamp.
It also provides the group with a 12.5% increase in funding per student, which is expected to increase the gross profit margins of the group’s training products and assist in covering recent inflation-linked cost increases.
Northcoders, a Manchester-based company which also has sites in Leeds, Newcastle and Birmingham, has today issued a trading update for the six months to 30 June 2023, noting that its revenue for the period increased by 52% to £3.5m (H1-2022: £2.3m).
Chris Hill, CEO, said: “In spite of challenging market conditions, the Board is confident of achieving further growth for the full year.
“During the period Northcoders won a number of contracts with large corporates as well as securing further funding from the Department for Education, providing the group with good forward visibility of revenues.
“The company is financially strong and we are well placed to further invest in the business for growth.”
The firm adds it has good FY-2023 revenue visibility and a strong balance sheet position with £2.9m worth of cash and net cash of £2m as of 24 July 2023.
And the group has made significant investments into sales, marketing and partnership functions “to ensure success against the current economic backdrop.”
It acknowledges headwinds encountered by the technology market – including budget constraints, workforce reductions and recruitment freezes affecting many of the group’s partner companies – could potentially affect the vacancies available to Northcoders Training Bootcamp graduates.
