Corporate News

Northcoders (AIM: CODE), a market leader in technology training in the UK, is pleased to announce its Final Results for the year ended 31 December 2023 (‘FY23’ or the ‘Period’).

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

 

Financial Highlights

• Group revenue up to a record £7.1 million, increasing 27% from £5.6 million in FY22 driven by geographic expansion and entry into new disciplines
• Gross profit increasing 13% to £4.4 million (FY22: £3.9 million) with a gross profit margin of 63%
• Adjusted EBITDA of £0.1 million (FY22: £0.9 million), in line with market expectations, Loss after tax of £1.0 million (Profit after tax FY22: £0.4 million), following investment in infrastructure and nascent B2B training division
•  Cash balance as at 31 December 2023 of £1.6 million (FY22: £2.8 million)
• Net assets increased to £4.8 million (FY22: £4.6 million)
  

Operational Highlights

• Record growth in numbers of individuals trained, increasing to 2,852 (FY22: 1,685demonstrating Northcoders ability to rapidly scale its training services
• Focus on student outcomes leading to further growth in hiring partners with 465 (FY22: 407) partnered with in the Period
• Relationship with UK Government continues to strengthen, achieving a £4.5 million bid to fund students in H2-2023 and FY-2024, as announced in September 2023
  • Further £10 million bid win announced in January 2024
• B2C bootcamps now taught across the UK, including new regions such as Scotland – significant growth since IPO – and experiencing strong demand for new technology disciplines such as Cloud Engineering (DevOps)
• B2B Business Solutions began first central Government contract in Q4 2023 and continues to develop strong pipeline of corporate business opportunities
• Successful acquisition of Tech Returners in February 2023 to help further improve access to technology, strongly focussing on facilitating women’s return to the workplace following career breaks
• NCore learning platform ready for roll out in FY24 to companywide efficiencies and further margin growth
  

Current trading and outlook

• Both B2C and B2B divisions starting FY24 strongly, with record B2C applications and a growing pipeline for B2B contracts
• £10 million DfE contract announced in January 2024, giving further revenue visibility for FY-2024 and H1-2025 and underpinning an 18.6% increase in revenue per student
• Revenue access and contracted visibility already reaching £8.3 million for FY24
• Planned launch of flexible, part time courses announced on 4 April 2024, to increase access to training for individuals from a wider array of backgrounds
• As anticipated, positive Ofsted monitoring visit in February 2024, ensuring future funding safeguarded and credibility of Northcoders offering maintained
• Northcoders trading in line with market expectations for FY24

 

Chris Hill, CEO, commenting on the results 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.

“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.”

Analyst meeting & Investor Meet Company Presentation

There will be a presentation for sell-side analysts at Buchanan Communications, 107 Cheapside, London EC2V 6DN, for any enquiries please contact Buchanan on [email protected] . A copy of the Final Results presentation will be available on the Group’s website later today: investors.northcodersgroup.com

Northcoders will also be presenting via the Investor Meet Company platform today, 30 April 2024 at 6pm (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. To sign up for the Northcoders presentation please click the following link: https://www.investormeetcompany.com/northcoders-group-plc/register-investor.

 

For further enquiries:

Northcoders Group plc	Via Buchanan
Chris Hill, CEO	Tel: +44 (0) 20 7466 5000
Charlotte Prior, CFO	www.northcodersgroup.com
WH Ireland Limited (Nominated Adviser & Joint Broker)
	Tel: +44 (0)20 7220 1666
Mike Coe / Darshan Patel / Sarah Mather (Corporate Finance) 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
Buchanan Communications
Henry Harrison-Topham	[email protected]
Stephanie Whitmore

 

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 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 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.