Northcoders hits record revenues
Northcoders, the coding specialist with bases in Leeds, Manchester, Birmingham and Newcastle, has hit record annual revenues of £7.1m, it reported today, but slipped into a pre-tax loss.
Turnover increased by 27% from £5.6m in 2022, driven by geographic expansion and entry into new disciplines.
However, the firm made a £1.225m pre-tax loss, which is compared with a pre-tax profit of £346,429 the previous year. Northcoders attributed this to investment in infrastructure and the nascent B2B training division.
Cash balance as at December 31, 2023, was £1.6m, against £2.8m last year. Net assets increased to £4.8m (FY22: £4.6m).
Northcoders reported record growth in numbers of individuals trained, increasing to 2,852 from 1,685 last year.
A focus on student outcomes led to further growth in hiring partners with 465 (FY22: 407) partnered with in the period.
Its relationship with the Government continues to strengthen, achieving a £4.5m bid to fund students in H2-2023 and FY-2024. A further £10m bid win announced in January 2024.
In current trading, both B2C and B2B divisions are starting FY24 strongly, with record B2C applications and a growing pipeline for B2B contracts.
Revenue access and contracted visibility is already reaching £8.3m for FY24.
The company said it is currently trading in line with market expectations for FY24.
CEO, Chris Hill, CEO, said: “I am pleased to report another year of record revenue growth with further increasing demand for our high quality training products. Despite the subdued technology hiring market making FY23 more challenging in certain areas of the business, we have continued to fulfil our ambitious growth strategy.
“We have continued to scale our B2C division using our growth levers of geographic expansion, increasing technology disciplines that we teach, and introducing new training formats. We have also further developed our nascent B2B division, using the group’s strong reputation in technology training to build our pipeline of new business prospects. Our position is strong as the hiring market returns and look forward to providing more updates in due course.”
He added: “There’s no doubt that digital transformation continues to be at the forefront of business priorities, driving individual and corporate training demand for our services. This, combined with the long term bi-party government funding commitments to upskilling private and public sectors, leaves Northcoders well positioned to continue to scale the business and deliver value to our shareholders.”
