Business
Government Contract Win and H1-23 Trading Update
Government Contract Win and H1-23 Trading Update.
About this update from Northcoders Group Plc
[{"type":"text","content":"\n\n\n\n\nFor immediate release\n\n\n25 July 2023\n\n\n\n \n \nNorthcoders Group PLC\n('Northcoders', the 'Group' or the 'Company')\n \nGovernment contract win\nH1-2023 Trading Update\n \nNorthcoders (AIM:CODE), the independent provider of training programmes for software coding, is pleased to announce that the Group has been successful in securing further funding from the Department for Education Skills Bootcamps Wave 4 bid. In addition, the Group provides a trading update for the six months to 30 June 2023 ('H1-2023' or the 'Period').\n \nContract win\n \nThe Group is pleased to announce that it has successfully secured further funding from the Department for Education Skills Bootcamps Wave 4 bid. This new round of funding provides Northcoders with a further £4.5 million to train individuals on the Northcoders market-leading bootcamp and provides the Company with strong revenue visibility for H2-2023 and FY-2024. In addition, it also provides the Group with a 12.5% 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.\n \nTrading update\n \nH1-2023 Highlights:\n \n· Increase in H1-2023 revenue of over 50% in comparison with H1-2022\n· Good FY-2023 revenue visibility with further confirmation of Skills Bootcamp funding and multiple corporate contracts in place\n· Strong balance sheet position with £2.9 million of cash and net cash of £2.0 million as at 24 July 2023\n· Significant investment into sales, marketing and partnership functions to ensure success against current economic backdrop\n· Tech Returners, which was acquired in February 2023, has now been fully integrated into the Business Services division and is performing well.\n \nThe Group is trading comfortably in line with management expectations. Revenue for the period increased by 52% to £3.5 million (H1-2022: £2.3 million). As at 30 June 2023, revenue visibility for FY-2023 was £6.75 million, being 70% 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. &nb...