Digital skills gap strengthens demand for coding training group’s services
Northcoders, a coding training specialist, says its unaudited revenue increased by 24% to £8.8m (FY 2023: £7.1m) in a trading update for the year ended 31 December 2024 (FY 2024).
The group, which has bases in Leeds, Manchester, Birmingham and Newcastle, adds that it maintains a robust financial position with £1.2m of cash as at 31 December 2024 (31 December 2023: £1.6m) and net cash of £0.75m (31 December 2023: £0.8m).
Despite macro-economic uncertainty, the group’s Training Bootcamp division has delivered a resilient performance with enrolments up by 15% to 1,339 (FY 2023: 1,167).
Registrations grew by 24% to 10,575 (FY 2023: 8,535) and the hiring partner network increased to 510 companies (FY 2023: 465 companies).
Counter®, the group’s consultancy brand, has secured a full contract with a large airport group, and the pipeline for future sales opportunities is growing.
In November 2024, Northcoders confirmed it had been accepted onto the G-Cloud 14 Government framework, positioning it strongly for additional investment into the public sector, including the NHS.
Chris Hill, CEO and founder, said: “We are pleased to report another year of significant progress for Northcoders, with our strategic investment into our products and infrastructure leading to a material increase in profitability in the period.
“While conscious of the hiring challenges felt in the wider UK recruitment market, there continues to be a fundamental gap in digital skills which acts as a barrier to economic growth and, as such, we remain confident in the underlying demand for our services.
“We believe the steps taken to diversify our revenue streams, through the launch of the Counter® consultancy business, combined with the ongoing expansion of the Northcoders brand in the UK, position us strongly as we start the new financial year.”
The group says FY 2025 has started promisingly, further supported by its office move in Manchester that provides lower costs and more flexibility to the business.
It notes the Government’s commitment to enhancing digital skills, particularly through AI utilisation for economic growth, presents fresh opportunities.
Commenting on changes to Employer’s National Insurance announced in the 2024 Autumn Budget which will take effect from April 2025, Northcoders estimates it will have around £0.15m of additional costs in FY 2025.
The firm says it has taken actions to streamline the business in Q4 FY 2024 and Q1 FY 2025, which will to some extent protect group profitability in the year ahead.
