Corporate News

Group continues to deliver IPO strategy and geographic expansion, with record demand and continued support from UK government

Northcoders (AIM:CODE), an independent provider of training programmes for software coding, is pleased to announce its results for the six months ended 30 June 2022 ('H1 2022' or the 'Period').

Financial Highlights

• Revenue more than doubled to £2.37 million in H1 2022 (H1 2021: £1.09 million), an increase of 117%
  • Particularly strong demand for bootcamp training, delivering revenues in H1 2022 of £1.72 million (H1 2021: £0.93 million) as Northcoders continues to build its reputation as a leading technology training provider
  • Growing contribution from Business Services of £0.20 million (H1 2021: £0.16 million), leveraging significant market opportunity as businesses struggle to manage UK tech skills gap
• Gross profit increased 110% to £1.66 million (H1 2021: £0.79 million) with a gross margin of 70%
• Significant 62% increase in underlying adjusted EBITDA of £0.42 million (H1 2021: £0.26 million)
• Benefitted from efficiencies of hybrid teaching model with ongoing remote learning, combined with teaching in person at hubs, generating profits after tax of £0.19 million (H1 2021: £0.02 million),  delivering adjusted EPS of 4.59 pence (H1 2021: 0.47 pence)

 Operating Highlights

• Continued growth in demand with 3,494 applications in H1 2022 compared to 3,662 applications in FY 2021
• Further expansion of Business Services division supported by successful launch of new Developer Incubator, the Group’s "Teams-as-a-Service" model for businesses to hire teams of junior developers, managed by Northcoders' internal consultancy team
• Well-known corporates such as On the Beach, Evri, HESA and Sky Bet have also started their training programmes in the Period
• Capacity increased as employee headcount rose to 84 (H1 2021: 41)
• Data Engineering product trials progressed with curriculum finalised and first cohort due to start in October 2022
• Birmingham hub successfully launched with strong demand and Midlands based staff headcount increasing as planned

Current trading and outlook

• Individual applications continue to grow, with an additional 1,798 applications since the Period end
• Continued demand for Business Services, with repeat programmes from NHS Digital
• Further Government support announced with £4.00 million contract secured
• Strong performance giving the Board confidence to invest additional funds in the second half of the year to support further growth in FY 2023
• On track to deliver FY 2022 targets with Q3 2022 trading continuing at record levels and, as of 16 September 2022, contracted bookings for 2022 standing at £5.50 million, supported by persistently growing demand for technology engineers
• At this early stage contracted booking for 2023 already stands at £2.50 million
• Approved Government supplier for corporate services after being accepted onto ‘Crown Commercial’, the UK Government’s procurement system 

Chris Hill, Chief Executive Officer of Northcoders, said: “More than doubling revenues in the first half of the year is testament to the growing reputation of Northcoders as one of the UK’s leading technology training providers, with a business model that is able to evolve to meet the demands of individuals and corporates alike.

“The continuing Government support for technology training serves to highlight the significant digital skills gap in the UK. The lack of qualified engineers is limiting the progress of businesses nationwide which in turn is holding back a domestic economic recovery. This is combined by a lack of diversity in the technology sector that requires immediate attention as it ultimately further limits the supply of quality engineers and impedes the levelling up agenda.  A shortage of talent is simultaneously pushing sector salaries to all time highs and increasing the attractiveness of the career path and demand for Northcoders services.

“As the Group moves into the second half of the year Northcoders is continuing to deliver on its growth strategy as a result of this unabated demand and there is significant confidence in the Group’s ability to provide all stakeholders with sustainable and profitable long term growth.”

Analyst meeting and Investor Meet Company presentation

A virtual meeting for sell-side analysts will be held at 10.00 a.m. today, 20 September 2022. Please contact Buchanan via [email protected] if you wish to join the meeting. A copy of the Interim Results presentation will be available on the Group’s website later today: www.northcodersgroup.com.

Northcoders will be also be presenting via the Investor Meet Company platform today, 20 September 2022 at 4.30 p.m. (BST). The meeting will be hosted by Chris Hill (CEO) and Charlotte Prior (CFO), and there will be an opportunity for Q&A at the end of the session. Questions can be submitted pre-event via the Investor Meet Company dashboard up until 9.00 a.m. the day before the meeting or at any time during the live presentation. To sign up to the Northcoders Group presentation via Investor Meet Company please click the following link: https://www.investormeetcompany.com/northcoders-group-plc/register-investor.

This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended (“MAR”). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain. 

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Notes to Editors

Northcoders is a market leading provider of coding and software development training for businesses and individuals. Founded in 2015, its business model operates a hybrid structure with a flagship site in Manchester and other sites in Leeds, Birmingham and Newcastle supported by a proven digital offering to support its students across the UK.

Powered by IP rich technology, Northcoders’ coding school offers boot camp courses to individuals from a range of backgrounds, delivered through virtual and physical learning.  The Group also works with blue chip corporates across multiple sectors to supply innovative EdTech solutions for the upskilling and reskilling of employees, and is also a registered provider of government-backed apprenticeships in the field.

With a keen focus of inclusivity, diversity and quality at its core, Northcoders aims to address the digital skills gap in the UK to meet the increasing demand for digital specialists from businesses and public agencies. It operates in a significant and growing market with structural growth trends further accelerated by Covid-19.Northcoders was admitted to trading on AIM in July 2021 with the ticker CODE.L.  For additional information please visit www.northcodersgroup.com .