Northcoders announces a significant Government contract win to boost growth

The company said: “This new round of funding provides Northcoders with a further £4.5m to train individuals on the Northcoders market-leading bootcamp and provides the company with strong revenue visibility for H2-2023 (the second half of 2023) and FY-2024 (full year 2024).

"In addition, it also provides the group with a 12.5 per cent increase in funding per student which is expected to increase the gross profit margins of the group’s training products and assist in covering recent inflation-linked cost increases.”

The statement added: "Revenue for the period increased by 52 per cent to £3.5m. As at June 30 2023, revenue visibility for FY-2023 was £6.75m, being 70 per cent of the market expectations for the full year.

"As forecasted before the start of the current financial year, it remains the board’s expectation that FY-2023 revenues will be second half weighted. Substantial business development progress has been made by Northcoders towards the visibility of H2-2023's revenue forecast.”

In the first half of the year, Northcoders’ Business Solutions division secured a number of significant new contracts with large corporate clients including Deutsche Bank and BAE Systems.

The statement added: “The group also has confirmation of a repeat programme from KPMG to begin during Q4-2023 (the fourth quarter of 2023) and a healthy business development pipeline which the board is confident will further boost full-year revenue visibility during the coming months.

"In addition, to strengthening corporate business, the Business Solutions division has also secured its first public sector consultancy contract with a major government department.”

The Training Bootcamps division also grew its graduate hiring network by a further 9 per cent by engaging with 76 organisations for the first time this year. Northcoders now has a network of more than 450 partner companies to sustain its graduate hiring from training bootcamps.

The statement added: “The group has also seen increased demand from individuals wanting to enrol on its core coding bootcamps and Returner Programmes. Application numbers in the six months to June 2023 stood at 3,494, which compares favourably with the 3,662 applications in the 12 months to December 2022.”

Chris Hill, the chief executive of Northcoders, said: “In spite of challenging market conditions, the board is confident of achieving further growth for the full year.

"During the period Northcoders won a number of contracts with large corporates as well as securing further funding from the Department for Education, providing the group with good forward visibility of revenues. The company is financially strong and we are well placed to further invest in the business for growth.”