Change: Northcoders owner Chris Hill used to run a gastropub
The Aldwark Arms is a quaint but popular gastropub in North Yorkshire. The pub, once a ruined village inn, was refurbished by young chef Chris Hill and his brother Nick.
But in 2015, Chris, 30, wanted a change. The pub was sold and Hill retrained as a software engineer. That’s when he discovered that even graduates with computer science degrees were not adequately prepared to work in technology. Hill created Northcoders to solve that problem.
Today, northern coders trains thousands of people from all walks of life to become “coders,” techno-specialists who make computers do what we all want them to do. Based in Manchester, the company runs three-month intensive coding courses designed to guide successful candidates into lucrative new careers.
Competition is fierce, with 14,000 applicants aiming for 1,000 places in 2023, but opportunities are open to all, with candidates selected aged between 17 and 70 and from railway workers to city lawyers.
In 2021, Hill won a contract to train future coders as part of the government’s Skills Bootcamp initiative, to help the UK produce more workers in key sectors.
Today, about 80 percent of Northcoder Bootcamp applicants are government-funded, and Hill’s contract was renewed this year. The group also works directly with companies to train their employees and parachutes in graduates from its own boot camp to work on projects.
Last year was difficult for the Northcoders. The technology hire failed and growth slowed, just as Hill and his team increased investment in the business. Revenue still rose 27 per cent to £7.1m, but profits fell from £900,000 to £100,000.
A rapid recovery is expected this year, with profits rebounding to at least 2022 levels and sales continuing to rise.
Higher profits are forecast for 2025 and beyond. There are high hopes for the enterprise-focused side of the business, with further growth expected from government contracts and people looking for a change, just as Hill himself once did.
Midas Verdict: Computer programming is integral to almost everything we do today and Northcoders is helping the UK become better at it. For adventurous investors keen to back British technical expertise, the shares, at £1.65, are a buy.
Traded in: Aim Heart: CODE Contact: northcodersgroup.com or 0333 050 4368
