28 September 2021
Group delivers profitability with UK investment in IT training driving revenues and growth
Northcoders (AIM:CODE), an independent provider of training programmes for software coding, is pleased to announce its results for the six months ended 30 June 2021 ('H1 2021' or the 'Period').
- Revenue for the Period of £1.085 million (H1 2020: £0.698 million), up 55% despite teaching limited to ‘online only’ for the majority of the Period
- A return to profitability despite the ongoing Covid-19 pandemic, generating profits before tax of £0.018 million (H1 2020: loss of £0.543 million)
- Underlying EBITDA of £0.258 million (H1 2020: breakeven) giving adjusted EPS of 0.47 pence
- Post Period end, successful IPO of the Group raised funds of £3.5 million (before costs) to accelerate the Group’s growth strategy and geographic expansion
- Q3 FY 2021 trading continues at record levels and as of 20 September 2021 contracted bookings stood at £2.871 million, approximately 96% of the target revenue for FY 2021, giving the Group confidence in delivering FY 2021 results in line with expectations
- Core hubs successfully reopened in north of England with Manchester reopening on 4 May and Leeds on 21 June and plans continue for geographic expansion in H2 2021
- Consumer bootcamp demand reached record levels
- At the end of August 2021 applications were at 162% of that experienced in the full year in 2019 (the most recent comparable period pre-Covid)
- Number of corporate hiring partners continues to increase, most recently including NHS Digital, Pretty Little Thing and FTSE 100 publishing group, Informa
- Post Period end awarded a £1.65 million government-funded scholarship programme, oversubscribed within five days of launch, giving significant revenue visibility for the second half of the year
- Group continues to progress conversations with Department for Education for similar future public funding options
- Successfully launched Apprenticeship programme in January 2021 following the government’s Education Skills Funding Agency accreditation
- Apprentices enrolled on programme in the Period were ahead of management’s expectations at 61 students
- Apprenticeships span the length and breadth of the UK, driving the Group’s geographic reach
- Group is looking into new apprenticeship standards with potential to expand the Apprenticeships offering
- Corporate Solutions generated increasing revenue, with post Period end contracts with Ove Arup and NHS Digital achieved
- Group capacity to teach students on programme, across the board, at any one time, increased by 15% vs. 2020 across all types and will increase by a further 74% in Q3 2021
- Applications expected to accelerate as a result of increased marketing spend post-IPO
Chris Hill, CEO of Northcoders, said: “2021 has been a hugely successful year for Northcoders so far and I would like to thank all of the team for their efforts. Not only did we successfully complete our IPO and raise fresh capital to accelerate our expansion, but demand for our services has hit record highs, giving us confidence in our ability to deliver returns to our new shareholders.
“As the digital skills gap gains greater public attention and career changes are more widely considered by individuals, we are confident that we are well positioned to capitalise on this growth in the IT training sector. We have a best-in class reputation among consumers and corporates alike, and our recent success in securing government funding gives us strong revenue visibility. We are now training students across the length and breadth of the UK, and believe that the full scope of our business model, combined with the benefits of our public listing, will only serve to continue this expansion.”
A virtual meeting for sell-side analysts will be held at 10.30 a.m. today, 28 September 2021. Please contact Buchanan via [email protected] if you wish to join the meeting. A copy of the Interim Results presentation will be available on the Group's website later today: www.northcodersgroup.com.
Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014) ("MAR") prior to its release as part of this announcement and is disclosed in accordance with the Company's obligations under Article 17 of MAR.
For further enquiries:
|Northcoders Group plc||Via Buchanan|
|Chris Hill, CEO||Tel: +44 (0) 20 7466 5000|
|Charlotte Prior, CFO||www.northcodersgroup.com|
|WH Ireland Limited (Nominated Adviser & Joint Broker)||Tel: +44 (0)20 7220 1666|
|Mike Coe / Sarah Mather (Corporate Finance)|
|Jasper Berry (Corporate Broking)|
|Peterhouse Capital Limited (Joint Broker)||Tel+44 (0) 20 7496 0930|
|Buchanan Communications||Tel: +44 (0) 20 7466 5000|
|Henry Harrison-Topham||[email protected]|
Notes to Editors
Northcoders is a market leading provider of B2B and B2C coding and software development training. Founded in 2015, its business model operates a hybrid structure with flagship sites in Manchester and Leeds supported by a best in class digital offering to businesses and individuals across the UK.
Powered by IP rich technology, Northcoders' coding school offers boot camp courses to consumers from a range of backgrounds, delivered through virtual and physical learning. The Group also works with blue chip corporates across multiple sectors to supply innovative EdTech solutions for the upskilling and reskilling of employees, and is a registered provider of government-backed apprenticeships in the field.
With a keen focus of inclusivity, diversity and quality at its core, Northcoders aims to address the digital skills gap in the UK to meet the increasing demand for digital specialists from corporate and government. It operates in a significant and growing market with structural growth trends further accelerated by Covid-19.
Northcoders was admitted to trading on AIM in July 2021 with the ticker CODE.L. For additional information please visit www.northcodersgroup.com.