REG - Northcoders Group - Trading Update

NorthcodersAnnouncement

31/01/2023 07:00

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RNS Number : 3200O  Northcoders Group PLC  31 January 2023

 Immediate Release  31 January 2023

 

 

Northcoders Group PLC

('Northcoders', the 'Group' or the 'Company')

 

Trading Update

 

Northcoders (AIM:CODE), the independent provider of training programmes for
software coding, is pleased to provide the following trading update for the
year ended 31 December 2022 ('the Period').

 

Highlights for the Period

 

·    Unaudited financial results for the Period are in line with
expectations

·    Cash at year end was £2.8 million, providing substantial resources
for continued investment in growth

·    Northcoders Business Solutions product suite successfully launched
with Rolls Royce renewing and growing their Incubator contract

·    Oversubscribed placing to fund the development of four new training
courses (Cyber Security, Platform Engineering, Quality Assurance and Agile
Project & Product Management) and the development of NCore, the Group's
core technical delivery platform

·    Further growth opportunities identified in adjacent product areas and
geographies to expand the profile and brand of the Group

·    Continued growth in demand, with 8,852 training bootcamp applications
in the Period, compared to 3,662 applications in the year to 31 December 2021,
an increase of 141%

 

In 2022 Northcoders hiring partner network grew by 94 new companies, which is
a 30% increase on 2021. This list includes well-known companies such as SAGE,
BBC, Missguided and SEGA. This brought the Group's hiring partner network to
409 companies by the end of the Period. Over the course of 2022, the Group
placed 379 Northcoders into their first roles in Technology. This is an
increase of over double (114%) in placements compared to 2021.

 

Current trading and outlook

 

·    Revenue visibility for the forthcoming year currently stands at £5.4
million, an increase of 79% compared to the same time last year. Contracted
revenue represents 57% of the market expectation for the FY23

·    January 2023 saw the Group embark on its largest training Bootcamp
cohort to date, 125 learners, with 98 choosing Software Development and 27
Data Engineering

·    Continued growth in demand, with 1,207 training bootcamp applications
received in January so far

·    The Group has been accepted onto the Department for Education's
dynamic purchasing system ('DPS') for Skills Bootcamps. The DPS will run for
six years with a value of approximately £1.5 billion, giving the Group
confidence in the long-term government support of its Training Bootcamps

 

With demand continuing to achieve record highs, the Board is confident about
the Group's prospects of the forthcoming year. The strong performance of the
Group has given the Board confidence to invest additional funds to support the
growth this year and beyond, and it intends to launch new growth initiatives
to broaden the opportunities and appeal of the Group's courses.

 

The proceeds from the Group's successful placement in November 2022 are
already in deployment. Northcoders' Data Engineering course was successfully
launched and is in flight with 24 learners recently completing the first Alpha
Cohort and 36 learners are enrolled on the Group's Beta Cohort, which
commenced this month. Platform Engineering is due to start its Alpha Cohort
early in Q2-23, with marketing, learner and employer acquisition commencing
earlier this month and running in parallel with product development. The Board
is reviewing the right time to design and launch further courses, including
Cyber Security, later in the year, but the emphasis on quality, as measured by
employability outcomes, is paramount for any new products.

 

In January 2023, the Group placed 23 Northcoders into roles and added six new
hiring partners to its network, bringing Northcoders hiring network to 415
companies.

 

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 Buchanan
 Chris Hill, CEO                                             Tel: +44 (0) 20 7466 5000
 Charlotte Prior, CFO                                        www.northcodersgroup.com (http://www.northcodersgroup.com/)

 WH Ireland Limited (Nominated Adviser & Joint Broker)       Tel: +44 (0) 20 7220 1666
 Mike Coe

 Darshan Patel
 Sarah Mather

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

 Buchanan Communications
 Henry Harrison-Topham                                       northcoders@buchanan.uk.com (mailto:northcoders@buchanan.uk.com)
 Jamie Hooper
 George Cleary

 

Notes to Editors

Northcoders is a market leading provider of B2B and B2C coding and software
development training. Founded in 2015, its business model operates a hybrid
structure with flagship sites in Manchester and Leeds supported by a best in
class digital offering to businesses and individuals across the UK.

 

Powered by IP rich technology, Northcoders' coding school offers bootcamp
courses to consumers 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 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 corporates and government. 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
(https://www.northcodersgroup.com/) .

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