Tech training provider Northcoders has reported record annual revenues of £7.1 million, up by 27% from £5.6 million in FY22.
The results are in lie with the company’s January trading update, and Manchester-headquartered Northcoders said the jump in the year to December 31, 2023 was driven by geographic expansion and entry into new disciplines.
Gross profit was up 13% to £4.4m, although adjusted EBITDA dropped from £900,000 in 2022 to £100,000 in 2023, and loss after tax to £1m compared with £400,000 profit in the prior year. Northcoders blamed this on “investment in infrastructure” and its “nascent B2B training division.”
The company also increased the number of people trained for tech roles over the year from 1,685 to 2,852; now works with 465 ‘hiring partner’ companies to place students; added regions including Scotland to its B2C offer, and launched its B2B Business Solutions division after landing a central government contract.
It also acquired Tech Returners in February 2023 to help further improve access to technology, strongly focusing on facilitating women’s return to the workplace following career breaks.
CEO Chris Hill said: “I am pleased to report another year of record revenue growth with further increasing demand for our high-quality training products. Despite the subdued technology hiring market making FY23 more challenging in certain areas of the business, we have continued to fulfil our ambitious growth strategy.
“We have continued to scale our B2C division using our growth levers of geographic expansion, increasing technology disciplines that we teach, and introducing new training formats. We have also further developed our nascent B2B division, using the Group’s strong reputation in technology training to build our pipeline of new business prospects. Our position is strong as the hiring market returns and look forward to providing more updates in due course.
“There’s no doubt that digital transformation continues to be at the forefront of business priorities, driving individual and corporate training demand for our services. This, combined with the long term bi-party Government funding commitments to upskilling private and public sectors, leaves Northcoders well positioned to continue to scale the business and deliver value to our shareholders.”
