Corporate News

Northcoders returns to profitability amid record demand, including momentum for new Corporate
Solutions division, with tech investments driving efficiencies

Northcoders (AIM:CODE), a UK market leading technology training business, is pleased to announce its results for the six months ended 30 June 2024 ('H1 2024' or the 'Period').

Download To view a full version of the results in  PDF format  click here To download the Results Presentation click here

 

Chris Hill, Chief Executive Officer of Northcoders, said: “We are delighted to report that Northcoders has continued to build on its reputation as one of the UK’s leading technology training providers as we return to profitability. This highlights not only the momentum of our Training Bootcamps, reaching record registrations for yet another year, but also that the investments made in FY 2023 have successfully led to efficiencies throughout the business. The strength of Northcoders brand across the UK continues to grow, and as the breadth of our technology training continues to expand, such as our new Java and C# courses, we are confident in our ability to sustain this expansion. These courses are the languages usually adopted by large enterprises and are currently underserved or not serviced at all in our sector.

“I am really pleased to see the rebrand and relaunch of the Corporate Solutions division has started to bear fruit as we win our first pilot contracts, and the pipeline of Counter™ contracts is building well. I am deeply grateful for the hard work and dedication of all the Northcoders team to enable this significant progress to be made.

“As we move into the second half of the year, particularly as our revenue base begins to diversify, we are confident that we have built a solid platform to support further growth in the years ahead as we create life changing opportunities for individuals, help to close the UK’s digital skills gap and deliver for our shareholders.”

Financial Highlights

• Revenue grew to £4.4 million (H1 2023: £3.5 million), an increase of 26%, slightly ahead of management expectations
• Gross margin increased to 67% (H1 2023: 62%) following release of the NCore technology platform
• Tenfold increase in underlying adjusted EBITDA of £0.4 million (H1 2023: £0.04 million) as the Group leverages the efficiencies of investments made in FY 2023
• Return to profitability with adjusted EPS increasing to 2.58p (H1 2023: 2.07 loss)
• Strong balance sheet with cash of £1.3 million (H1 2023: £2.0 million) following technology platform investments, delivering enhanced margins

Operating Highlights

• Growth in demand with record Training Bootcamp registrations, reaching 4,703 in the Period (H1 2023: 3,590)
• Q3 2024 has again seen record applications, with 3,313 registrations
• Record visibility and profit per seat following successful Department for Education Skills Bootcamps bid for £10 million covering 18-month period to June 2025
• Geographic expansion continues with over 62% of learners now based outside of Manchester and Leeds, and 34% based in London
• Corporate Solutions division rebranded as Counter™ in May 2024 appointing Tom Walton as strategic advisor and starting three pilot contracts in the Period

• Successfully selected a new Manchester office, negotiated at a significantly lower rent to the current premises, with a move in date during Q1 2025.  Based in the centre of the city’s business district it will provide access to multiple new potential customers and hiring partners
• New technology training courses continue to expand with Java and C# courses successfully added to learning suite

Current trading and outlook

• The second half of FY 2024 started well and the Group is pleased to report trading has been slightly ahead of management expectations. As brand awareness and national expansion increases, Northcoders will look to provide remote learners outside of Manchester with more in-person networking opportunities and strengthening the Group’s regional hiring partner base
• Focus remains upon investing into new technology disciplines, expanding our Corporate Solutions division, Counter™, increasing brand awareness and leveraging the efficiencies of NCore, whilst delivering increased profitability
• Looking ahead, the Board is confident in Northcoders’ ability to deliver FY 2024 revenue and profits in line with market expectations.

Analyst meeting and Investor Meet Company presentation

There will be an in-person briefing for sell-side analysts at 9.30am (BST) today.  Please contact Buchanan via [email protected] if you wish to join the meeting.

Northcoders will be also be presenting via the Investor Meet Company platform today at 6.00 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.

 

For further enquiries:

Northcoders Group plc	Via Burson Buchanan
Chris Hill, CEO	Tel: +44 (0) 20 7466 5000
Charlotte Prior, CFO	investors.northcodersgroup.com
Zeus (Nominated Adviser & Joint Broker)	Tel: +44 (0) 20 3829 5000
Mike Coe / Sarah Mather (Investment Banking) Fraser Marshall / George Krokos (Sales)
Peterhouse Capital Limited (Joint Broker)	Tel: +44 (0) 20 7496 0930
Martin Lampshire	www.peterhousecap.com
Lucy Williams Duncan Vasey
Burson Buchanan (Financial Communications)	Tel: +44 (0) 20 7466 5000
Henry Harrison-Topham	[email protected]
Steph Whitmore Jesse McNab	www.bursonbuchanan.com

   

 

Notes to Editors

Northcoders is a market leading provider of technology training for businesses and individuals with courses in, Software Engineering, Data Engineering and Platform Engineering.  Founded in 2015, the Group’s business model operates a hybrid structure with a flagship site in Manchester and another site in Leeds, supported by a proven digital offering to support its students across the UK.

Powered by IP rich technology, Northcoders 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 help them to achieve their digital requirements, with teams as a service and to supply innovative solutions for the upskilling and reskilling of employees. 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 at all levels, from businesses and public agencies.

Northcoders was admitted to trading on AIM in July 2021 with the ticker CODE.L.  For additional information please visit investors.northcodersgroup.com.