Northern training powerhouse Northcoders has announced its half-year results for H1, 2022.
With demand achieving record highs, the Northcoders, which operates software coding training hubs in Manchester, Leeds, Birmingham and Newcstle, has announced that is trading comfortably in line with management expectations as to revenue and ahead of management expectations with respect to underlying profitability for the first half of 2022.
Revenue for the six months to 30 June 2022 was £2.3m (H1 2021: £1.0m). On 30 June, revenue visibility for the financial year to December 2022 was £5.4m, or 83 per cent of market expectations for the year.
The strong performance of the group in the year to date means the board will invest additional funds in the second half of the year to support the anticipated growth in FY 2023, which is expected to result in the overall profitability for FY 2022 being in line with market expectations.
During the same period, the group has secured several new contracts in its corporate solutions division, with Rolls Royce and EMAC Ltd, among others, and it has received confirmation that its NHS Digital Academy programme will commence in September 2022.
Well-known companies such as On the Beach, Evri, HESA and Sky Bet have also started digital training programmes with Northcoders during the first half of 2022. The group grew its graduate hiring network by a further 10 per cent by engaging with 32 new companies for the first time this year.
Northcoders now has a network of almost 350 hiring partner companies to sustain its graduate hiring from coding bootcamps. The group has also continued to see an increase in demand from individuals wanting to enrol on its core coding bootcamps and apprenticeships. Application numbers for the first six months of the current year stood at 3,494, which compares favourably with the 3,662 applications in the 12 months to December 2021.
Northcoders’ corporate solutions division has successfully launched its Developer Incubator, a fully managed Teams-as-a-Service model for businesses to hire teams of junior developers, managed by Northcoders’ internal consultancy team. Developer Incubator offers the support required by organisations who need to future-proof their talent pipeline but do not have the internal resources to hire junior-level developers. Training is bespoke to the client and delivered up front. Developer Incubator utilises a hire, train, deploy model, where consultants are hired on Northcoders’ payroll and billed out to clients for a monthly fee. It has already signed contracts with theidol.com (a subsidiary of Legal & General), R2 Data Labs, Rolls-Royce’s data science division and the customer service software provider EMaC.
Northcoders’ cash flow has also benefited from Department for Education-funded scholarships being made available to those who previously utilised the company’s finance provider, which had absorbed working capital. The company has used this as an opportunity to accelerate investment plans in its learn-to-code platform, which will automate learner enrolment in its courses and lead to a substantial saving in staff costs in the learner admissions team.
This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014, which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement, the information is now considered to be in the public domain.
