Northcoders, the Manchester and Leeds-based independent provider of training programmes for software coding, has provided its maiden trading update following its admission to AIM on 27 July 2021.
Northcoders has delivered a strong performance in the first eight months of the financial year to August 2021 (‘the Period’). The Group is trading comfortably in line with management expectations in terms of both revenue and underlying profitability. At the end of August, contracted revenue for the current financial year was approximately 90% of the target revenue for the year. In addition, cashflow has benefitted from the additional course funding available from the Group’s contract under the Department for Education’s Lifetime Skills Guarantees and Plan for Jobs initiative secured in July 2021.
Consumer demand for the Group’s core Bootcamp courses is growing strongly. Applications from individuals have been boosted as the UK moves away from the Covid pandemic, as more individuals look to change their careers. This is reflected in the Period, as applications reach 162% of that experienced in the full year in 2019 (the most recent comparable period). With the benefit of increased marketing spend following the fundraise at IPO, the Board expects this growth in demand to continue as Northcoders continues to expand its list of hiring partners.
The national reach of Northcoders is expanding considerably, with the Group’s Apprenticeship division achieving contracts across the UK, from regions as far south as Plymouth and as far north as Darlington and Penrith, Cumbria. The Group plans further investment into its apprenticeships offering and is aiming to launch new technology products in Q1 2022 which will diversify apprenticeship revenue streams from the Group’s existing core coding and software focused programmes.
Northcoders’ corporate Solutions division continues to attract new business with revenue for the year to date ahead of the 2020 full year revenue. Solutions contracts include bespoke training and software development contracts with Stockport-based Digital Applications Limited, the independent IT solution delivery company, and with NHS Digital. The Board is also pleased that work with Ove Arup & Partners, the global professional services firm, continues for the third consecutive year.
The Group will release its half-year results for the six months ended 30 June 2021 on Tuesday, 28 September 2021.
