£4.5 Million boost for northcoders in government contract triumph

Northcoders, a leading software coding training provider, has succeeded in securing a £4.5 million contract from the Government’s Department for Education Skills Bootcamps Wave 4 bid.

The latest funding injection bolsters Northcoders’ mission to equip individuals with high level coding skills through its successful bootcamp programme. With this financial boost, the group will now be able to expand its training offerings and cater to a broader audience.

Remarkably, the Government’s support also comes with a generous 12.5% increase in funding per student. This promising development is expected to bolster the group’s gross profit margins and help mitigate the impact of recent inflation-related cost escalations.

Northcoders, headquartered in Manchester and with branches in Leeds, Newcastle, and Birmingham, has marked its successful trajectory with a remarkable trading update for the first six months of 2023. During this period, the company achieved a substantial revenue growth of 52%, amounting to £3.5 million (compared to £2.3 million in H1-2022).

Chris Hill, the CEO, stated, “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.”

With a strong balance sheet position, Northcoders holds £2.9 million in cash and boasts a net cash reserve of £2 million as of 24th July 2023, signifying its robust financial standing.

To further consolidate its position in the market, Northcoders has made substantial investments in sales, marketing, and partnership functions, strategically navigating the current economic backdrop to ensure continued success.

While celebrating their achievements, the company is mindful of the challenges faced by the technology market, including budget constraints, workforce reductions, and recruitment freezes affecting their partner companies. These headwinds could potentially impact the job opportunities available to graduates of the Northcoders Training Bootcamp. Nonetheless, Northcoders remains committed to providing excellent training and positioning its graduates for success in the tech industry despite the prevailing circumstances.