Northcoders wins £4m funding from Department for Education

Software coding training provider Northcoders has secured further funding from the Department for Education’s ‘Skills Bootcamps Wave 3’, it announced on Tuesday.

The AIM-traded firm said the new round of funding would provide it with £4m of scholarships to train individuals, providing it with revenue visibility into the 2023 financial year, which was expected to be “another year of significant growth”, according to the board.

It said signing such contracts, alongside company initiatives such as the new corporate ‘Developer Incubator’, allowed Northcoders to plan revenue further into the future than was previously possible, providing “comfort” for future targets.

The funding was awarded to teach software development - the group's core offering - and could also be used to fund students in the group's new data engineering business unit.

Northcoders said the unit, to be launched in the fourth quarter, would form the next discipline within its product growth plan.

The scholarship seats would be eligible for award anywhere in England, which also provided an opportunity to further grow the firm’s geographical footprint, including in London and other areas in the south of England.

“I am delighted that Northcoders has been able to secure this additional £4 million government funding through the Department for Education,” said chief executive officer Chris Hill.

“As well as providing the company with additional revenue visibility, it also demonstrates how well-regarded our technology training courses are in the UK.

“With one of the Company's core values being to improve diversity and inclusion within the tech industry, Northcoders are pleased to continue to offer these scholarships that provide accessibility to people from all walks of life across the UK whilst helping address the significant UK digital skills gap.”

At 1238 BST, shares in Northcoders Group were up 18.61% at 284.67p.

Reporting by Josh White at Sharecast.com.