REG - Northcoders Group - Trading Update

NorthcodersAnnouncement

30/01/2024 07:00

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RNS Number : 2687B  Northcoders Group PLC  30 January 2024

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.

 

30 January 2024

 

Northcoders Group plc

('Northcoders' or the 'Group')

 

Trading Update

 

'FY-2023 in line with expectations; strong start to FY-2024'

 

Northcoders (AIM:CODE), a UK market leading technology training business, is
pleased to provide the following trading update for the year ended 31 December
2023 (the 'period' or 'FY-2023').

 

The Group is pleased to report that underlying FY-2023 trading is in line with
revised market expectations(1.) Unaudited revenue for the period increased by
27% to £7.1 million (FY-2022: £5.6 million), driven by accelerating demand
for digital training.  The Group has £1.6 million of cash as at 31 December
2023 and net cash of £0.8 million.

 

In FY-2023 Northcoders' core B2C Bootcamp Division experienced record growth,
receiving 8,535 registrations (FY-2022: 4,615) across its software
development, data engineering and cloud engineering (DevOps) programmes.
 This has resulted in record-breaking graduate placements and a 14% increase
in the hiring partner network, now totalling 465 companies, many of whom are
returning to the Group to fill new roles repeatedly, demonstrating the quality
of the Group's technology training.

Despite the challenging macroeconomic environment, the Group's B2B Division
experienced improved sales towards the end of H2-2023, securing three new
contracts and generating an improved pipeline moving into FY-2024 across
private and public sectors.  Additionally, the Group secured admission onto
the Cloud Compute 2 Government procurement framework, which will provide
further opportunities for public sector engagement.

 

Current trading and outlook

2024 has started strongly, with continued growth in registrations within the
B2C Bootcamp Division in January, reaching 872 (January 2023: 501),
representing a 74% increase. This has been driven by improved strength and
effectiveness of our marketing and conversion strategies.

 

On 16 January 2024 Northcoders announced that it had secured its largest ever
Department for Education Government funding round. This will generate a 18.6%
increase in funding per student which will support the Group's profitable
growth and assist in offsetting inflation linked costs. The newly built
'NCore' platform has now been released, driving efficiencies and enabling the
Group to explore even broader teaching mechanisms and iterations of the
courses.

 

As a result, the Board is confident about the Group's prospects for the
current financial year, with access to revenue and contracted visibility for
FY-2024 standing at an all-time high at £8.3 million. This is an increase of
40% cover compared to January 2023, and strongly underpins market expectation
for FY-2024(2). Revenue visibility for FY-2025 already stands at £3.7
million.

 

 

Chris Hill, CEO of Northcoders, said: "Reflecting on the past year I am
genuinely proud of the Northcoders team, who delivered strong growth in
revenue despite a challenging macro-economic backdrop.  The ambition and
entrepreneurial culture across the Group has played a crucial role in
navigating these challenging market conditions, particularly as we faced some
initial challenges within our newer B2B division.  Looking ahead, we are
moving into 2024 in our strongest ever position.

 

"Northcoders remains committed to our mission, creating life-changing
opportunities for individuals from all walks of life, as we build upon our
growth track record whilst focusing on increasing profitability.  I am
incredibly excited about the opportunities that lie ahead and the positive
impact Northcoders can continue to make in the UK technology industry, and to
the lives of the individuals we serve."

 

 

(1)FY-2023 Revised market expectation post Interim Results on 19 September
2023 - Revenue £7.1 million and underlying EBITDA of £0.1m

(2)Market expectations for FY-2024 for Revenue of £8.5m and underlying EBITDA
of £0.9m

 

- Ends -

 

For further enquiries:

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

 WH Ireland Limited (Nominated Adviser & Joint Broker)        Tel: +44 (0)20 7220 1666
 Mike Coe / Darshan Patel / Sarah Mather (Corporate Finance)

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

Duncan Vasey

 Buchanan Communications                                      Tel: +44 (0) 20 7466 5000
 Henry Harrison-Topham                                        northcoders@buchanan.uk.com
 Steph Whitmore
 Jamie Hooper

 

Notes to Editors

 

Northcoders is one of the UK's highest quality technology training businesses,
offering tuition across a broad suite of digital areas including software
development, data engineering and cloud engineering (DevOps).  Founded in
2015, the Group's B2C and B2B programmes are award winning, and this premium
reputation has helped grow a network of 600+ corporate hiring partners for its
alumni.

 

The Group is focused on making an immediate impact on corporate diversity and
accessibility, and its remote learning courses are offering individuals across
the UK, from every background, entry to the technology skills market. As
emerging technologies further increase the need for digital experts, demand
for these services continues to grow. Through further geographic expansion,
customer diversification, new training formats and new course introductions,
Northcoders is rapidly scaling to address the UK's digital skills gap.

 

Northcoders was admitted to trading on AIM in July 2021 with the ticker
CODE.  For additional information please visit
investors.northcodersgroup.com. (https://investors.northcodersgroup.com/)

 

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