Manchester-headquartered Northcoders, a market leader in technology training in the UK, has provided 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 Northcoders 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. It 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 (pictured), 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.”