Northcoders to move to new home in Leeds as it prepares to grow in Yorkshire

Northcoders today revealed it had returned to profit over the last half year and plans to continue its geographic expansion.

The company said a new lease has been signed in Leeds for premises that can accommodate the company’s growth.

Around one third of the total Northcoders' team of 60 people is already based at its office in Platform in Leeds and the company regards Yorkshire as an important region for future growth.

Northcoders said Platform had been a "great base" but the company is looking for a larger home because Platform is full.

Chris Hill, CEO of Northcoders, said the business had seen plenty of demand from companies and individuals and this demand has kept on growing.

Northcoders has signed a major contract with NHS Digital in Leeds to provide a graduate programme which will help to close the skills gap, Mr Hill added.

A hybrid working model also means Northcoders is finding clients in a broader range of areas more quickly than anticipated.

Mr Hill, who founded the company in 2016, said Northcoders is set for a really strong second half, with higher revenues than the first half.

He made the comments as Northcoders announced its results for the six months ended 30 June 2021.

Revenue was £1.085 million, which is an increase of 55% despite teaching limited to 'online only' for the majority of the period.

The company also returned to profitability despite the ongoing Covid-19 pandemic. It generated profits before tax of £0.018 million, compared with a loss of £0.543 million in the same period the year before.

Mr Hill said: "2021 has been a hugely successful year for Northcoders so far and I would like to thank all of the team for their efforts. Not only did we successfully complete our IPO and raise fresh capital to accelerate our expansion, but demand for our services has hit record highs, giving us confidence in our ability to deliver returns to our new shareholders.

"As the digital skills gap gains greater public attention and career changes are more widely considered by individuals, we are confident that we are well positioned to capitalise on this growth in the IT training sector.

"We have a best-in class reputation among consumers and corporates alike, and our recent success in securing government funding gives us strong revenue visibility. We are now training students across the length and breadth of the UK, and believe that the full scope of our business model, combined with the benefits of our public listing, will only serve to continue this expansion."

Until this summer, the company had grown with a small amount of seed funding and debt. It decided to list on AIM to gain access to capital and for the reputational benefits of becoming a PLC, which should help Northcoders secure work with more blue-chip corporate clients.

In a trading update published last month, Northcoders revealed that its national reach is expanding, with the group’s apprenticeship division securing contracts from Plymouth to Darlington and Penrith.

Demand for the group’s core boot camp courses is growing strongly. Applications have increased as the UK moves away from the pandemic, and more individuals look to change their careers. So far, more than 800 people have seen their career options broadened with help from Northcoders.