Final Results

Northcoders, an independent provider of training programmes for software coding, is pleased to announce its Final Results for the year ended 31 December 2022 

Financial Highlights

·    Group revenue up 86%1 to £5.6 million (FY21: £3.0 million)

 Consumer revenue increased by 77%1 to £4.9 million (FY21: £2.8 million)

 Corporate revenue increased by 189%1 to £0.7 million (FY21: £0.3 million)

·    Gross profit up 82%1 to £3.9 million (FY21: £2.2 million) with a gross profit margin of 70%

·    Adjusted EBITDA slightly ahead of market expectations up 152%1 to £0.9 million (FY21: £0.4 million)

·    Profit before tax £0.3 million (FY21: loss £0.5 million)

·    Net assets increased to £4.6 million (FY21: 2.1 million)

·    Cash balance as at 31 December 2022 of £2.8 million (31 December 2021: £1.6 million)

·    Oversubscribed placing in November 2022, raising £2.1 million

1 Based on underlying, not rounded, figures.

Operational Highlights 

·    Significant growth in demand with 8,470 applications in FY22 compared to 3,662 in FY21

·    Business Solutions division continues to grow with contract to hire model, Developer Incubator the most successful product

·    Developer Incubator contracts are around 12 months long, providing excellent revenue visibility

·    Major corporate partners including Rolls Royce, Disney, BBC, KPMG and Sage

·    Headcount increased to 101 to satisfy demand (FY21: 63)

·    Significant geographic presence with physical hubs in Manchester, Leeds, Newcastle and Birmingham.  Online delivery has ensured Northcoders has a presence in many more cities across the UK

Current Trading and Outlook

·    Trading to date in-line with management expectations

·    Favourable market dynamics with significant Government support (£1.5 billion allocated) for skills bootcamps where Northcoders is a key player

·    Tech Returners acquired in February 2023, creating significant opportunity for women in technology

·    Business Solutions product offering started well with repeat business orders

·    Building on significant geographic expansion, a London presence for the corporate market is the priority for FY23

·    Significant momentum in Q1-23 and a record-breaking March, with 3,714 applications already received

·    Excellent revenue visibility of £6.1 million (end of Q1-23), with approximately 64% of revenue target achieved for full year

Commenting on the Final Results, Chris Hill, CEO of Northcoders, said: "I am pleased to report our first full year results as a quoted company. We have had a successful year, significantly growing revenue and profitability, whilst keeping our core values at the heart of everything we do.   A strategic priority was to create a presence in many regions across the UK, which has been achieved successfully during the period.  We have also been able to focus on the expansion of our Business Solutions division, which has been an immense success with a number of major corporates onboarding and making repeat orders. Digital transformation is a growing priority for corporates, trying to find new and innovative ways of filling their teams and goals at a time of economic restraint, and Northcoders is incredibly well placed to satisfy this demand.

"In November 2022 we completed a placing, raising £2.1 million, which has enabled us to set out on our growth path of teaching more technical disciplines.  We have experienced record demand and have navigated macro-economic challenges successfully and we are in a strong position for growth in FY23.  The demand for Northcoders' services has never been higher, with a record-breaking month in March 2023.  With favourable market dynamics such as the UK government committing billions of pounds for the provision of skills bootcamps, Northcoders is well positioned to grow.  The current year has started strongly, and at the end of the first quarter revenue visibility stood at £6.1 million, approximately 64% of target revenue for the year, and subsequently, the Board has every confidence for the Group's prospects for the remainder of the year."

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