Northcoders revenue rises 86% amid expansion

Shares of Northcoders Group plc rose as much as 9% after the provider of training programmes for software coding published results for the year ended December 31, 2022, showing revenue up 86% to £5.6 million and adjusted EBITDA up 152% to £900,000.

Northcoders is based in Manchester, Leeds, Newcastle and Birmingham.

Profit before tax was £300,00 compared to a loss of £500,000 in the prior year.

Northcoders joined the stock market at £1.80 per share in July 2021 and the stock rose as high as £3.75 in September 2022. It now trades around £3.22, giving the firm a stock market value of about £26 million.

Northcoders CEO Chris Hill said: “I am pleased to report our first full year results as a quoted company.

“We have had a successful year, significantly growing revenue and profitability, whilst keeping our core values at the heart of everything we do.  

“A strategic priority was to create a presence in many regions across the UK, which has been achieved successfully during the period. 

“We have also been able to focus on the expansion of our Business Solutions division, which has been an immense success with a number of major corporates onboarding and making repeat orders.

“Digital transformation is a growing priority for corporates, trying to find new and innovative ways of filling their teams and goals at a time of economic restraint, and Northcoders is incredibly well placed to satisfy this demand.

“In November 2022 we completed a placing, raising £2.1 million, which has enabled us to set out on our growth path of teaching more technical disciplines. 

“We have experienced record demand and have navigated macro-economic challenges successfully and we are in a strong position for growth in FY23. 

“The demand for Northcoders’ services has never been higher, with a record-breaking month in March 2023. 

“With favourable market dynamics such as the UK government committing billions of pounds for the provision of skills bootcamps, Northcoders is well positioned to grow. 

“The current year has started strongly, and at the end of the first quarter revenue visibility stood at £6.1 million, approximately 64% of target revenue for the year, and subsequently, the board has every confidence for the group’s prospects for the remainder of the year.”