Tech training firm Northcoders has released its trading update for the financial year ended December 31, 2023.
The group reports that underlying FY-2023 trading is “in line with revised market expectations.” 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.
Northcoders’ core B2C Bootcamp Division experienced record growth over the year, 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.
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.
The update added that 2024 has started strongly, with continued growth in registrations within the B2C Bootcamp Division in January, reaching 872 (January 2023: 501), a 74% increase. This has been driven by improved strength and effectiveness of our marketing and conversion strategies.
On January 16, 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 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, an increase of 40% cover compared to January 2023, and strongly underpins market expectation for FY-20242. 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.”
