Northcoders (AIM:CODE), a UK market leading technology training business, is pleased to announce its results for the six months ended 30 June 2024 ('H1 2024' or the 'Period').
Chris Hill (pictured), Chief Executive Officer of Northcoders, said: “We are delighted to report that Northcoders has continued to build on its reputation as one of the UK’s leading technology training providers as we return to profitability. This highlights not only the momentum of our Training Bootcamps, reaching record registrations for yet another year, but also that the investments made in FY 2023 have successfully led to efficiencies throughout the business. The strength of Northcoders brand across the UK continues to grow, and as the breadth of our technology training continues to expand, such as our new Java and C# courses, we are confident in our ability to sustain this expansion. These courses are the languages usually adopted by large enterprises and are currently underserved or not serviced at all in our sector.
“I am really pleased to see the rebrand and relaunch of the Corporate Solutions division has started to bear fruit as we win our first pilot contracts, and the pipeline of Counter™ contracts is building well. I am deeply grateful for the hard work and dedication of all the Northcoders team to enable this significant progress to be made.
“As we move into the second half of the year, particularly as our revenue base begins to diversify, we are confident that we have built a solid platform to support further growth in the years ahead as we create life changing opportunities for individuals, help to close the UK’s digital skills gap and deliver for our shareholders.”
Financial Highlights
- Revenue grew to £4.4 million (H1 2023: £3.5 million), an increase of 26%, slightly ahead of management expectations
- Gross margin increased to 67% (H1 2023: 62%) following release of the NCore technology platform
- Tenfold increase in underlying adjusted EBITDA of £0.4 million (H1 2023: £0.04 million) as the Group leverages the efficiencies of investments made in FY 2023
- Return to profitability with adjusted EPS increasing to 2.58p (H1 2023: 2.07 loss)
- Strong balance sheet with cash of £1.3 million (H1 2023: £2.0 million) following technology platform investments, delivering enhanced margins
Operating Highlights
- Growth in demand with record Training Bootcamp registrations, reaching 4,703 in the Period (H1 2023: 3,590)
- Q3 2024 has again seen record applications, with 3,313 registrations
- Record visibility and profit per seat following successful Department for Education Skills Bootcamps bid for £10 million covering 18-month period to June 2025
- Geographic expansion continues with over 62% of learners now based outside of Manchester and Leeds, and 34% based in London
- Corporate Solutions division rebranded as Counter™ in May 2024 appointing Tom Walton as strategic advisor and starting three pilot contracts in the Period
- Successfully selected a new Manchester office, negotiated at a significantly lower rent to the current premises, with a move in date during Q1 2025. Based in the centre of the city’s business district it will provide access to multiple new potential customers and hiring partners
- New technology training courses continue to expand with Java and C# courses successfully added to learning suite
Current trading and outlook
- The second half of FY 2024 started well and the Group is pleased to report trading has been slightly ahead of management expectations. As brand awareness and national expansion increases, Northcoders will look to provide remote learners outside of Manchester with more in-person networking opportunities and strengthening the Group’s regional hiring partner base
- Focus remains upon investing into new technology disciplines, expanding our Corporate Solutions division, Counter™, increasing brand awareness and leveraging the efficiencies of NCore, whilst delivering increased profitability
- Looking ahead, the Board is confident in Northcoders’ ability to deliver FY 2024 revenue and profits in line with market expectations.