Latest Results
Final Results
Record revenue and profitability as Northcoders consolidates reputation as a leading UK technology training business
Northcoders (AIM: CODE), a market leader in technology training in the UK, is pleased to announce its Final Results for the year ended 31 December 2024 (‘FY24’ or the ‘Period’).
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FY24 Financial Highlights
- Group revenue increased by 24% to a record £8.8 million, (FY23: £7.1 million) driven by continued success in diversifying revenues and rolling out new course in high growth areas
- Gross profit increased by 34% to £5.9 million (FY23: £4.4 million) with a gross profit margin of 67% (FY23: 63%) reflecting a balance between the efficiencies achieved by NCore and the economic challenges of inflation and rising operational costs.
- Adjusted EBITDA* increased significantly to £1.0 million (FY23: £0.1 million), in line with market expectations, and returned a positive profit after tax of £0.4 million (loss after tax FY23: £1.0 million)
- Cash balance as at 31 December 2024 of £1.2 million (FY23: £1.6 million)
- Net assets increased to £5.3 million (FY23: £4.8 million)
FY24 Operational Highlights
- Further increase in number of individuals trained, increased to 3,976 (FY23: 2,852) driven by the constantly evolving offering that brings in new formats and technical courses (Java and C#)
- Reputation continued to grow as one of the highest quality training providers in the UK market reflected in the number of hiring partners rising to 510 (FY23: 465)
- The B2C Training Bootcamp division continued to provide the bridge for UK consumers to enter the increasingly attractive technology sector
- Counter®, the Group’s consultancy brand, continued to gain momentum with the challenger brand winning five mandates in the Period
- NCore platform continued to drive efficiencies by increasing the student to tutor ratio, whilst improving excellence in the Group’s courses by increasing the contact time offered
Current Trading and Outlook
- In the latter part of FY24 and into Q1 FY25, there has been a positive shift in corporate engagement, with more of the Group’s hiring partners taking on junior engineers and encouraging progress in its Counter® programme
- Post period end three contracts won, two with Skipton Building Society and one with Manchester Airports Group
- On 5 March 2025 the Group announced that it had successfully secured a new £1.5m debt finance agreement to support the next stage of growth
- Northcoders launched its new B2C Training Bootcamp course focusing on AI and Machine Learning which will start in June 2025
- The Group’s current Department of Education contract provides visibility until June 2025 and there is confidence, although not certainty, that decisions about future structures will have been made by then, with national extension conversations underway
*Adjusted EBITDA definition – see note 6
Commenting on the Final Results, Chris Hill, CEO of Northcoders, said: "Our record FY24 results are a testament to Northcoders' growing national reputation as a leading provider of high-quality technology training. Despite a challenging hiring market, we are successfully diversifying revenues and increasing profitability within the Group. Our growing curriculum of technology training courses, including in high demand areas like AI and Machine Learning, is supporting the inherent scalability of the Northcoders business model.
“As the UK looks to address the digital skills gap to drive innovation and economic recovery, the role Northcoders plays in developing tomorrow’s technology talent has never been more important. By empowering individuals from all backgrounds to pursue careers in technology, we will more equitably and rapidly evolve the digital landscape. Looking ahead, FY25 has started promisingly. Whilst macro-economic challenges remain in the short term, we continue to be confident that, as the market improves, our quality training solutions and strategy will drive value for our shareholders.”
Analyst meeting & Investor Meet Company Presentation
There will be a presentation for sell-side analysts at Burson Buchanan, 107 Cheapside, London EC2V 6DN, for any enquiries please contact Burson Buchanan on [email protected] . A copy of the Final Results presentation will be available on the Group’s website later today: investors.northcodersgroup.com
Northcoders will also be presenting via the Investor Meet Company platform today, 23 April 2025 at 12pm (BST). The meeting will be hosted by Chris Hill (CEO) and Charlotte Prior (CFO), and there will be an opportunity for Q&A at the end of the session. To sign up for the Northcoders presentation please click the following link: https://www.investormeetcompany.com/northcoders-group-plc/register-investor.Chair’s statement
Introduction
FY24 has seen Northcoders once again successfully grow revenue to record levels, achieve record student applications, and invest into new training products and platforms despite a period of macroeconomic uncertainty in the UK. The technology hiring market in particular has remained challenging, with organisations experiencing headcount reductions and budget constraints as a result of the wider uncertainty.
Despite these challenges, Northcoders achieved 1,144 student enrolments and 67% have gone into jobs within six months of completing the bootcamp. The number of our students winning roles post-course demonstrates the quality of our offering and consolidates our sector-leading reputation. Furthermore, the Group has increased profitability driven by our focus on efficiency, maximising the use of the new technology platform and virtual learning, whilst keeping our core values at the heart of everything we do.
Whilst the hiring market has been challenging, the consumer demand for training has never been stronger, reflecting the attractions of working in technology. We have now helped to change the lives of over 4,000 people from different walks of life and will continue in a sustainable manner, to ensure that all of our graduates have the chance at gaining employment. We continue to scale geographically in many UK regions outside of our original Northern homelands, including new areas such as Scotland.
2024 saw the introduction of two new iterations of the Software Engineering course, Java and C#. Both enterprise languages, Java is a widely used, high‑level programming language designed for portability across different platforms and C# is a modern, object-oriented programming language developed by Microsoft. The latter is a great choice for people interested in the gaming industry.
The introduction of these two courses widens job prospects for our graduates and diversifies roles. Rollout has been supported by our NCore platform which has enabled us to scale efficiently and provide an excellent learning experience for all our students.
Our mission to create life-changing opportunities for individuals and help to close the UK’s digital skills gap remains consistent, and our flexible training solutions ensure we stay the go-to choice for individuals and businesses, regardless of economic conditions. Backed by a highly capable team of industry experts and efficient processes, we are set up for continued success.
We are proud that we are making a genuine difference to individual learners and to our corporate customers who can grow their own talent, supported by, and in partnership with, Northcoders. This is where we add significant value to our corporate customers.
Strategic growth
FY24 was a year of strategic progress and one of the key milestones was securing a new Department for Education contract in January 2024, providing a significant funding boost to our core bootcamp training programmes and reinforcing our position as a trusted provider of high-quality technology education. This contract not only supported our growth in FY24 but also strengthens our financial stability moving into H1 2025.
We launched our part-time coding bootcamp in July 2024, enabling more individuals to train for a career in technology while balancing work and personal commitments. Designed in direct response to demand for more flexible learning options, the 20-week virtual programme provides full-stack development skills without needing to study full-time. This initiative aligns with Northcoders’ mission to drive inclusivity in digital skills training, ensuring that anyone, regardless of their background or schedule, can pursue a career in technology. The curriculum and teaching model is being received well, with students receiving job offers before the end of the course. This new offering being well received reflects our ability to innovate in response to market needs.
Alongside our Training Bootcamp growth, our consultancy division, now operating under the Counter® brand, has expanded its reach. We have strengthened relationships with corporate clients with contracts successfully extended, helping them to achieve their technology roadmaps through talented consultancy teams. Furthermore, in November 2024 we were accepted onto the G-Cloud 14 framework, the UK Government’s public sector digital marketplace. This significant achievement broadens Counter®’s accessibility and visibility, simplifying how public sector organisations identify the Group’s industry‑leading expertise and solutions. This diversification of revenue streams is a critical part of our long-term strategy.
Growth, resilience and quality profitable earnings remain our focus. 2024 has shown that Northcoders can achieve growth and profitable earnings whilst diversifying the offering for resilience. Following the investments made in FY23, we also now have the infrastructure in place to deliver our services at scale, whilst creating efficiencies within our teaching model and therefore increasing profitability.
Outlook
FY25 trading has started promisingly. Training Bootcamp applications and registrations continue strongly, and we are seeing an increase in the Counter® pipeline. As anticipated, the new UK Government is resulting in some changes to the timing and structure of funding for our training bootcamps. Whilst processes will be different, we are confident that funding will continue. We continue to communicate directly with both regional and national funding bodies so that the Group can quickly embrace the new structure once announced. Alongside this, the team continues to take market share in our Consultancy division, diversifying revenues to ensure our strategic aim of resilience is achieved. The additional courses in AI and Machine Learning launched this year further expand the appeal of our services.
I want to take a moment to recognise and thank our employees for their hard work this year. They have consistently innovated and created exceptional experiences, learning opportunities and partnerships that our customers value, while also receiving great feedback. All of this has been accomplished while navigating constantly evolving economic and market conditions. The Group is on the front foot and I am confident that as the market returns, as one unified Northcoders team, we will successfully execute our strategy and plans while seizing the exciting opportunities that lie ahead.
Angela Williams
Non-Executive Chair
22 April 2025
Chief Executive Officer’s review
Introduction
2024 has been a year of growth, challenge and transformation. While the technology industry has faced uncertainty – with hiring freezes, budget constraints and shifting employer demands – Northcoders has remained focused on what we do best: equipping people with the skills to build successful careers in technology.
This year tested us in new ways, and the agility we have shown has reinforced our strengths. We adapted quickly to market conditions, diversified our training programmes and continued to expand our impact. Our record-high student numbers, strong employer engagement, and strategic investments in automation and operational efficiency have set us up for long-term success.
Evolving our business for the future
At Northcoders, we are constantly evolving. In 2024, we made key strategic decisions to ensure we continue delivering high‑quality, outcome-driven training while future‑proofing our business model. Some of the biggest developments this year include:
- A more diverse training model: We introduced our part-time coding bootcamp, opening the door for those who need flexible learning options to transition into technology careers
- New Software Engineering courses: We expanded our technical course portfolio to include two new Software Engineering iterations, Java and C#, complementing our well-established JavaScript and Data Engineering programmes
- Growth in the Consultancy division (now Counter®): We refined our consultancy offerings, making them more accessible to businesses looking to achieve internal tech roadmaps and develop their in-house tech talent
- Post period end, the Group launched its new B2C Training Bootcamp course focusing on AI and Machine Learning which will start in June 2025
Operational review
In FY24 a total of 1,144 Northcoders students embarked on a life-changing journey through one of our training bootcamps. Our online business model continued to be the preferred delivery method for learners and remains the most effective approach for our teaching team to uphold excellence as our student numbers grow. Applications from prospective students stood at 17,159 (FY23: 13,878).
In January 2024 the Group successfully secured a £10m Department for Education Skills Bootcamps bid for the 18-month period to June 2025. Further to the new funding, in February 2024, we received a monitoring visit from Ofsted, which yielded a positive result, comparable with a ‘Good in all areas’ result should Ofsted’s recent visit have been a full inspection. The full report is hosted online and can be found on Ofsted’s website, but importantly this ongoing demonstration of best-in-class education supports Northcoders’ ongoing relationship with private and public funding providers.
Northcoders ended 2024 with a permanent headcount of 129 FTE staff members compared to the 128 FTE staff members at the start of the year. The Group has worked hard to create efficiencies within the Training Bootcamps division with the help of NCore, and future staff increases will be generated from growth of the Consultancy division.
NCore’s main business benefit is the ability to substantially increase our student‑to‑tutor ratio whilst improving excellence in our courses by increasing the contact time offered to current and potential bootcamp students.
In FY24 Northcoders introduced two new technical disciplines to our course offering: Java and C#; feedback from learners and hiring partners has been positive. We have also added a part-time version of our JavaScript course. Our Data Engineering bootcamps division continues to grow, with excellent feedback from students and hiring partners.
Training Bootcamps
Training Bootcamps have been at the core of Northcoders’ business since inception and continue to form an important part of our operations as we evolve. Our courses cater to individuals of all ages and backgrounds aspiring to build careers in the technology sector, delivered full-time over a 13-week period and part-time over a 20‑week period, ensuring comprehensive skills development. The training bootcamps are either funded by consumers upfront, with third-party finance, or through Department for Education funding. For over three years, Northcoders has been utilising Government Skills Bootcamp funding to offer scholarships, ensuring that individuals facing financial constraints can access our transformative training bootcamps and enhance their career prospects. Whilst there have been some changes brought about by the new UK Government, we are assured by ministers and the UK press, that Skills Bootcamps are still high on agendas.
A key focus in the Period has been expanding our network of hiring partners, with over 510 partners now working with us to offer life-changing opportunities for Northcoders’ graduates (FY23: 465). Despite the more challenging end market, the average starting salary has been resilient and, within three years, graduates typically see substantial salary growth as they move into more senior positions, highlighting the value of our training programmes.
Northcoders continues its mission to enhance diversity within the technology industry, with our data showing 30% representation of women and 39% of students without university degrees in our cohorts. As AI and large language models (LLMs) become increasingly prevalent, it is more important than ever to ensure that coding is driven by a diverse group of engineers.
Counter®
Our challenger consultancy brand, Counter®, delivers a corporate consultancy service by assembling teams of advanced technology engineers from Northcoders’ alumni and the Group’s Tech Returners business to support in-house technology programmes. Upon the completion of the initial contract, while the technology lead rejoins Northcoders, the associate consultants are offered the opportunity to transition into permanent roles within the client’s business at no extra cost.
This arrangement provides both immediate and long-term solutions for businesses, ensuring continuity and retention of expertise beyond the contract term. In a bid to diversify our service offerings, these teams are available both as autonomous ‘incubated’ groups and in collaboration with established consultancy firms. This strategy aims to enhance the Counter® service range while reducing dependency on higher-cost consulting services.
FY24 has seen the division build further momentum, as corporations emerge from hiring freezes, with budget constraints now allowing for the use of consultants. A number of pilot contracts have been won, including HMRC and Proven EA, as well as new contracts with Skipton Building Society, one of the leading UK-based mutual financial services groups, and Manchester Airports Group, announced post period end. The pipeline for new business continues to grow despite the challenging backdrop and we believe this growth is partially attributed to our nearshore pricing model for onshore consultants.
Financial review
FY24 has seen Northcoders deliver record growth with a 24% increase in revenue to £8.8m from £7.1m in 2023. This marks our highest ever revenue year and provides further evidence of Northcoders’ strong momentum, giving a positive indicator for future growth.
In addition, the Group has increased gross profit margins to 67%, reflecting a balance between the efficiencies achieved by NCore and the economic challenges of inflation and rising operational costs. Revenue for Training Bootcamps reached £7.9m and Counter® was £0.9m. Gross profit for the year was £5.9m (2023: £4.4m) with a reported gross profit margin (GPM) of 67% (2023: 63%).
Adjusted EBITDA increased significantly to £1.0m (2023: £0.1m). Our disciplined financial management and strategic investments in recent years have positioned us for long-term profitability and the impact of these efforts is already being seen, with efficiency gains across our delivery model and an enhanced ability to scale operations effectively when the opportunities present.
The increase in adjusted EBITDA in 2024 shows a more accurate view of trading following a year of investments in FY23, although we have continued to innovate with new courses and platform alterations within that margin.
The profit for the year before tax was £0.4m (2023: £1.2m loss). R&D tax credits and brought forward losses resulted in a profit for the year after tax of £0.4m (2023: £1.2m loss). Basic earnings per share was 4.85p per share (2023: loss 12.62p per share). Net assets as at 31 December 2024 were £5.3m (2023: £4.8m) of which cash was £1.2m (2023: £1.6m).
The cash balance at the year end of £1.2m will enable the Company to continue with its growth plans, whilst remaining prudent as appropriate with wider costs. Cash investment into internal infrastructure is expected to decrease in the year ahead as NCore investment has come to an end.
Current trading and outlook
In the latter part of FY24 and into Q1 FY25, we have observed a positive shift in corporate engagement, with more of our hiring partners taking on junior engineers. Additionally, we have seen encouraging progress in our Counter® pipeline, signalling an improvement in the tech industry economy. This momentum boosts our confidence to keep investing in Counter® and expanding the reach of our offerings.
The Group’s current Department for Education contract provides visibility until June 2025 and there is confidence, although not certainty, that decisions about future structures will have been made by then, with national extension conversations underway.
Alongside this, there are a number of local frameworks with open regional bids which offer funding opportunities for Northcoders and the Group has begun these bidding processes.
Our growth initiatives within the Training Bootcamp division include the introduction of additional technical service lines to ensure that we are ahead of the industry, providing the skills it needs. We have released a Data & AI course and continue to ensure that our courses are at the leading edge of what is being used in industry.
Our strategic progress is supported by the successful office move in Manchester that provides lower costs and more flexibility to the business.
We have started FY25 stronger, more efficient, and with clearer market positioning. Our Department for Education‑funded Skills Bootcamps, growing Counter® pipeline and diversified training models give us confidence in sustained growth. The steps we took in 2024 to streamline operations and expand our course offerings will enable us to scale effectively while maintaining the high standards that set us apart.
We know that the tech industry will continue to evolve, and so will we. By staying agile, innovative and laser-focused on learner outcomes, we will continue to drive meaningful change in the sector.
Chris Hill
Founder and Chief Executive Officer
22 April 2025
Group statement of comprehensive income
For the year ended 31 December 2024
| | Notes | 2024 £ | 2023 £ |
| Revenue | 8,819,083 | 7,102,319 | |
| Cost of sales | (2,916,871) | (2,658,650) | |
| Gross profit | 5,902,212 | 4,443,669 | |
| Other operating income | 1,000 | - | |
| Expenditure | (4,922,462) | (4,364,300) | |
| Adjusted EBITDA | 980,750 | 79,369 | |
| Depreciation | (131,838) | (172,582) | |
| Amortisation and impairment | (265,716) | (234,225) | |
| Share-based payments | (138,446) | (186,542) | |
| Total administrative expenses | (5,458,462) | (4,957,649) | |
| Non-recurring items | - | (562,603) | |
| Operating profit/(loss) | 444,750 | (1,076,583) | |
| Investment revenues | 29,957 | 14,170 | |
| Finance costs | (85,843) | (163,260) | |
| Profit/(loss) before taxation | 388,864 | (1,225,673) | |
| Income tax (expense)/income | (9) | 218,745 | |
| Profit/(loss) for the year | 388,855 | (1,006,928) | |
| Other comprehensive income: | |||
| Items that will not be reclassified to profit or loss Tax adjustment on share-based payments | (32,746) | (3,725) | |
(32,746) | (3,725) | ||
| Total items that will not be reclassified to profit or loss | (32,746) | (3,725) | |
| Total other comprehensive income for the year | 356,109 | (1,010,653) | |
Total comprehensive income for the year | |||
| Earnings per share | |||
| Basic | 4.85 | (12.62) | |
| Diluted | 4.85 | (12.62) | |
| Adjusted | 6.58 | (3.23) | |
| |
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
Group statement of financial position
As at 31 December 2024
| Notes | 2024 £ | 2023 £ | |
| Non-current assets Goodwill | 1,310,086 | 1,310,086 | |
| Intangible assets | 2,054,942 | 1,747,400 | |
| Property, plant and equipment | 222,149 | 316,986 | |
| Deferred tax asset | 127,807 | 158,837 | |
3,714,984 | 3,533,309 | ||
| Current assets Contract assets | 1,624,485 | 1,398,018 | |
| Trade and other receivables | 456,363 | 671,724 | |
| Current tax recoverable | 4,900 | 43,945 | |
| Cash and cash equivalents | 1,185,780 | 1,617,172 | |
3,271,528 | 3,730,859 | ||
| Current liabilities Trade and other payables | 978,219 | 1,101,275 | |
| Contract liabilities | 73,557 | 206,500 | |
| Current tax liabilities | - | 4,937 | |
| Borrowings | 258,276 | 293,355 | |
| Lease liabilities | 47,583 | 212,112 | |
1,357,635 | 1,818,179 | ||
| Net current assets | 1,913,893 | 1,912,680 | |
| Non-current liabilities Borrowings | 216,859 | 474,300 | |
| Lease liabilities | 99,844 | 154,070 | |
316,703 | 628,370 | ||
| Net assets | 5,312,174 | 4,817,619 | |
| Equity Called up share capital | 80,115 | 80,115 | |
| Share premium account | 4,801,444 | 4,801,444 | |
| Share option reserve | 371,663 | 401,714 | |
| Merger reserve | 500 | 500 | |
| Other reserve | 946,774 | 946,774 | |
| Retained earnings | (888,322) | (1,412,928) | |
| Total equity | 5,312,174 | 4,817,619 |
Group statement of changes in equity
For the year ended 31 December 2024
| Share | Share | Other | Share | Merger | Retained | Total | ||||
| capital | premium account | reserves | option reserve | reserve | earnings | |||||
| Notes | £ | £ | £ | £ | £ | £ | £ | |||
| Balance at 1 January 2023 | 76,889 | 4,801,444 | (50,000) | 228,480 | 500 | (415,583) | 4,641,730 | |||
| Year ended 31 December 2023: | ||||||||||
| Loss | - | - | - | - | - | (1,006,928) | (1,006,928) | |||
| Other comprehensive income: | ||||||||||
| Deferred tax on share-based payment transactions | - | - | - | - | - | (3,725) | (3,725) | |||
| Total comprehensive income | - | - | - | - | - | (1,010,653) | (1,010,653) | |||
| Transactions with owners: | ||||||||||
| Issue of share capital | 3,226 | - | - | - | - | - | 3,226 | |||
| Share options expense | - | - | - | 186,542 | - | - | 186,542 | |||
| Merger relief | - | - | 996,774 | - | - | - | 996,774 | |||
| Cancellation of share options | - | - | - | (13,308) | - | 13,308 | - | |||
| Balance at 31 December 2023 | 80,115 | 4,801,444 | 946,774 | 401,714 | 500 | (1,412,928) | 4,817,619 | |||
| Year ended 31 December 2024: | ||||||||||
| Loss | - | - | - | - | - | 388,855 | 388,855 | |||
| Other comprehensive income: | ||||||||||
| Deferred tax on share-based payment transactions | - | - | - | - | - | (32,746) | (32,746) | |||
| Total comprehensive income | - | - | - | - | - | 356,109 | 356,109 | |||
| Transactions with owners: | ||||||||||
| Share options expense | - | - | - | 138,446 | - | - | 138,446 | |||
| Cancellation of share options | - | - | - | (168,497) | - | 168,497 | - | |||
| Balance at 31 December 2024 | 80,115 | 4,801,444 | 946,774 | 371,663 | 500 | (888,322) | 5,312,174 | |||
Group statement of cash flows
For the year ended 31 December 2024
| 2024 | 2023 | ||||
| Notes | £ | £ | £ | £ | |
| Profit/(loss) for the year after tax | 388,855 | (1,006,928) | |||
| Adjustments for: | |||||
| Taxation charged/(credited) | 9 | (218,745) | |||
| Finance costs | 85,843 | 163,260 | |||
| Investment income | (29,957) | (14,170) | |||
| Loss on disposal of property, plant and equipment | (246) | (83) | |||
| Amortisation of intangible assets | 263,842 | 234,225 | |||
| Depreciation of property, plant and equipment | 131,838 | 172,582 | |||
| Equity settled share based payment expense | 138,446 | 186,542 | |||
| 978,630 | (483,317) | ||||
| Movements in working capital: | |||||
| (Increase)/decrease in contract assets | (226,467) | 549,904 | |||
| Decrease in trade and other receivables | 215,361 | 341,517 | |||
| (Decrease)/increase in contract liabilities | (132,943) | 201,261 | |||
| Increase/(decrease) in trade and other payables | 109,014 | (71,390) | |||
| Cash generated from operations | 943,595 | 537,975 | |||
| Income taxes refunded | 32,393 | 113,461 | |||
| Net cash inflow from operating activities | 975,978 | 651,436 | |||
| Investing activities | |||||
| Purchase of intangible assets | (571,384) | (751,400) | |||
| Purchase of property, plant and equipment | (38,411) | (86,110) | |||
| Proceeds from disposal of property, plant and equipment | 1,656 | 339 | |||
| Purchase of subsidiaries, net of cash acquired | - | (173,758) | |||
| Payment of deferred consideration | (240,902) | - | |||
| Interest received | 29,957 | 14,170 | |||
| Net cash used in investing activities | (819,084) | (996,759) | |||
| Financing activities | |||||
| Repayment of borrowings | (292,520) | (418,177) | |||
| Payment of lease liabilities | (218,755) | (279,826) | |||
| Interest paid | (77,011) | (116,775) | |||
| Net cash used in financing activities | (588,286) | (814,778) | |||
| Net decrease in cash and cash equivalents | (431,392) | (1,160,101) | |||
| Cash and cash equivalents at beginning of year | 1,617,172 | 2,777,273 | |||
| Cash and cash equivalents at end of year | 1,185,780 | 1,617,172 | |||