REG - Northcoders Group - H1-2024 Trading Update

NorthcodersAnnouncement

16/07/2024 07:00

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RNS Number : 4861W  Northcoders Group PLC  16 July 2024

     16 July 2024

 

Northcoders Group plc

('Northcoders' or the 'Group')

 

H1-2024 Trading Update

 

'Strong half-year position with record trading, visibility at an all-time
high.'

 

Northcoders (AIM:CODE), a market leader in technology training in the UK, is
pleased to provide the following trading update for the six months ended 30
June 2024 (the 'period' or 'H1-2024'), with trading in line with market
expectations.

 

The Group has experienced record demand in H1-2024, delivering a 26% increase
in revenues during the period of £4.4 million (H1-2023: £3.5 million).
 This revenue growth has been driven by further brand expansion across the UK
as well as continued robust underlying demand for Northcoders' technology
training services.  The Group continues to have a strong balance sheet
position with a £1.3 million cash balance at 30 June 2024.

 

Training Bootcamp Division

 

Northcoders' Training Bootcamp Division has continued to perform well, with
applications for the Group's core software development, data engineering and
cloud engineering (DevOps) programmes reaching 6,766 (H1-2023: 6,984).  Given
the sheer volume of applications, in 2024 the Group has shifted its strategic
focus to application conversions, these being applicants registering on its
Core Learning platform.  As a result, applicant registrations grew 37% to
4,959 (H1-2023: 3,609).  Graduate placements increased by over 25%, despite
the well documented challenges in the recruitment market, and the Group's
hiring partner network grew to around 500 companies (FY-2023: 465 companies)
to meet this expansion.

 

Further strategic growth initiatives for Northcoders' Training Bootcamp
division are expanding reach to applicants outside of its core delivery region
of England.  During the period, the Group received 127 applications from
regions outside of England (H1-2023: 53 applications).  Furthermore, the
Group's new flexible part-time course offering will commence its Alpha cohort
in H2-2024.

 

Corporate Solutions Division

 

The rebrand of Northcoders' Corporate Solutions division to COUNTER, as
announced on 22 May 2024, has been implemented successfully.  Leveraging the
talent pools of Northcoders and Tech Returners, COUNTER specialises in
deploying UK-based teams of technologists to corporate and public sector
clients, building dedicated teams that align technically and culturally with
clients' long-term goals.  Three pilot scheme COUNTER contracts commenced in
the period with high-profile clients including a UK high street building
society, a UK investment administrator listed on the Main Market of the London
Stock Exchange, as well as a global banking firm and, COUNTER's pipeline of
future opportunities continues to build.  The Group is confident,
particularly under the strategic guidance of technology consultancy
entrepreneur Tom Walton, in COUNTER's ability to add material value in the
medium term.

 

 

Current trading and Outlook

 

The second half of FY-2024 has started well and the roll out of the central
nCore learning platform and its associated efficiencies, as well as
Northcoders' largest ever £10 million Department for Education contract,
continue to drive profitability.  Strategic decisions to optimise growth of
both the Training Bootcamp and Corporate Solutions divisions are bearing fruit
and continue to propel topline expansion.

 

Looking ahead Northcoders is confident in delivering further growth in H2-2024
and, for the first time at this stage in the year, the Group has 100% access
to revenue and contracted visibility of the market expectations for FY-2024
revenue (30 June 2023: 70% visibility).  This demonstrates the increased
quality of the Group's growth as it continues builds a profitable platform
that is well positioned for future success.

 

Chris Hill, CEO of Northcoders, commented: "We are really pleased with our
performance in the first half of 2024 and achieving this is testament to our
strategic initiatives and the hard work of our ambitious team.  The
entrepreneurial culture runs top to bottom at Northcoders and the proactivity
within our teams is driving future success.  The successful rebranding of our
Corporate Solutions division to COUNTER is an important step forward for our
challenger brand, and we are confident that the growing reputation of
Northcoders' quality technology training across the UK will support future
growth for the division.

 

"As we mature as a business, I am excited for the future and confident in our
ability to create life-changing opportunities for individuals from all walks
of life as we leave our mark on the technology industry, whilst simultaneously
delivering value for our shareholders."

 

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.

 

- Ends -

 

 

For further enquiries:

 

 Northcoders Group plc                         Via Burson Buchanan
 Chris Hill, CEO                               Tel: +44 (0) 20 7466 5000
 Charlotte Prior, CFO                          investors.northcodersgroup.com (https://investors.northcodersgroup.com)

 Zeus (Nominated Adviser & Joint Broker)       Tel: +44 (0) 20 3829 5000
 Mike Coe / Sarah Mather (Investment Banking)  www.zeuscapital.co.uk (http://www.zeuscapital.co.uk)

 Fraser Marshall / George Krokos (Sales)
 Alice Lane (Corporate Broking)

 Peterhouse Capital Limited (Joint Broker)     Tel: +44 (0) 20 7496 0930
 Martin Lampshire                              www.peterhousecap.com (http://www.peterhousecap.com/)
 Lucy Williams

Duncan Vasey

 Burson Buchanan        Tel: +44 (0) 20 7466 5000
 Henry Harrison-Topham  northcoders@buchanan.uk.com (mailto:northcoders@buchanan.uk.com)
 Steph Whitmore         www.bursonbuchanan.com (http://www.bursonbuchanan.com)
 Jesse McNab

 

 

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.

 

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