---

Northcoders Group PLC announces a year of significant financial growth and strategic expansions, underpinning its market leadership in technology training across the UK.

---

Northcoders Group PLC, a leader in UK technology training, has experienced a banner year in FY23, marked by a significant 27% increase in revenue to £7.1 million. This growth is attributed to geographic expansion and successful entry into new disciplines. Despite a broad investment in infrastructure and the nascent B2B training division, which led to a loss after tax of £1.0 million, the company shows strong financial health with a cash balance of £1.6 million and net assets rising to £4.8 million.

Financial Performance

Northcoders’ revenue surged by 27% year-over-year, driven by expanded operations across the UK and the introduction of new training disciplines like Cloud Engineering. However, adjusted EBITDA saw a decrease, primarily due to significant investments in business infrastructure aimed at long-term growth. The company’s strategy to diversify training services and its robust relationship with the UK Government, securing substantial bids, underscore its solid market position despite a challenging economic environment impacting the tech sector.

Risk Factors

The company faces risks from economic uncertainties that affect the tech job market, potentially impacting graduate placements. Investments in new business divisions also carry execution risks. However, strong government relationships and contractual education funding provide some revenue visibility and mitigate these risks.

CEO Chris Hill emphasized the resilience in navigating a challenging hiring market and noted the strategic expansions that position the company well for future growth. Management’s focus remains on leveraging government partnerships and expanding training offerings to drive both B2C and B2B growth.

Investment Highlights

Northcoders presents a balanced investment profile with its strategic government relationships providing stable revenue streams, expansion into high-demand tech disciplines, and a forward-looking approach with the rollout of the NCore learning platform aimed at boosting operational efficiency.

Liquidity and Capital Resources

Despite a decrease in cash balance from the previous year, due to heavy investments, the company maintains healthy liquidity ratios and a robust capital structure with increased net assets. This positions Northcoders favorably for sustained operations and future expansion plans.

Significant Events and Milestones

Key milestones included a £10 million Department for Education contract win and the successful acquisition of Tech Returners, enhancing Northcoders’ training offerings and market reach. These developments are pivotal in increasing the company’s service capabilities and market footprint.

Outlook and Future Projections

With contracted visibility reaching £8.3 million for FY24, the outlook remains positive. The company anticipates continued revenue growth driven by both sectoral demand and strategic initiatives like the rollout of the NCore platform and new training programs.

Key Takeaways for Investors

Investors should note the company’s strategic government collaborations, robust pipeline of corporate contracts, and the integration of innovative learning platforms which collectively provide a strong foundation for future growth. However, awareness of the broader economic impacts on the tech job market and operational risks associated with new ventures is crucial.

You can get more information from Northcoders Group PLC Investor Relations.