26 April 2022
Northcoders (AIM: CODE), an independent provider of training programmes for software coding, is pleased to announce its maiden Final Results for the year ended 31 December 2021 (‘FY21’ or ‘the period’).
- Revenue increased 124% to £3.0m (FY20: £1.3m) driven by successful delivery of IPO growth strategy
- Consumer revenue, which includes core bootcamps and apprenticeship revenues, of £2.8m (FY20: £1.2m)
- Corporate Solutions revenue was £0.3m (2020: £0.1m)
- Gross margin growth to 72% (FY20: 67%), moving towards 79% target in 2019 driven by cost benefits of new hybrid model
- Gross profit increased significantly to £2.2m (FY20: £0.9m)
- Adjusted EBITDA increased to £0.4m from a loss in 2020 (FY20: loss of £0.3m)
- £3.5m raised at IPO (before expenses) to accelerate further growth
- Net assets as at 31 December 2021 were £2.2m (FY20: £0.5m) of which cash was £1.6m (FY20: £0.5m).
- Continued to expand geographic footprint with new lease signed for core hub in Leeds alongside existing Manchester campus
- New training hub opened in Newcastle and activity started in Birmingham
- Implemented new highly scalable hybrid course-delivery model blending online and in person teaching to extend reach of Northcoders’ training
- Driving record number of 3,662 students applying with 424 enrolling and 213 graduating so far
- Demand at record levels
- Continued to increase hiring partners to over 315, including new businesses such as NHS Digital, PrettyLittleThing, Informa, AND Digital Limited, Wren Kitchens Limited and Sky Betting & Gaming.
- Engaged with a new funding partner, StepEx Limited, allowing applications from a more diverse range of backgrounds
- Awarded £1.65m government-funded scholarship in July 2021 and continue to engage regarding future public funding arrangements
- Launched Apprenticeships course in January 2021 following government’s Education Skills Funding Agency accreditation
- 96 apprentices enrolled in the Period
- Contracts already begun across UK including companies such as PrettyLittleThing and logistics company, Hermes
- Corporate Solutions division signed multiple new agreements including with Ove Arup, Digital Applications International Limited (the independent IT solution delivery company), and NHS Digital
- Grew staff count to 63 members (FY20: 37) to meet increased demand
Current Trading and Outlook
- In January 2022, successfully extended Department for Education contract with additional £1.65m funding for courses to deliver between February and September 2022
- In Q1 FY22, graduated 1,000th person through bootcamp
- Announced May 2022 opening of Birmingham training hub
- Received a special request from Jason Stockwood, the Chairman of Grimsby Town Football Club, to establish a facility at the club’s stadium; this is planned for Q3 2022
- Company trading in line with expectations
- At the end of Q1 2022 revenue visibility stood at £3.6m, around 55% of the target revenue for the year.
Chris Hill, CEO, commenting on the results said:
“We are delighted to report such a strong set of maiden financial results, demonstrating that Northcoders is successfully delivering its IPO growth strategy. Consumer and corporate demand for our services continues to increase, and we are now extending our reach across the UK as planned through our hybrid product offering.
“As the need for software and technology skills continues to increase, and digital transformation takes priority for organisations in almost every sector, Northcoders’ market leading reputation is driving demand for our training. This, coupled with our extended Government contract, gives us confidence in our ability to fulfil our significant growth ambitions.”
A virtual meeting for sell-side analysts will be held at 10.00 a.m. today, 26 April 2022. Please contact Buchanan via [email protected] if you wish to join the meeting. A copy of the Full Year Results presentation will be available on the Group's website later today: www.northcodersgroup.com .
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, as amended ("MAR"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.
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
|Peterhouse Capital Limited (Joint Broker)||Tel+44 (0) 20 7496 0930|
|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 corporates 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 .