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Tech

Northcoders shares jump on new government training contract

Uncertainty around global technology spending and resultant job cuts across the sector is not a worry of Northcoders Group PLC (AIM:CODE).

Shares jumped 25p to 160p as AIM-listed Northcoders hailed a new £10 million government contract on Tuesday to provide individuals with coding training.

As well as its size, the contract offers stability throughout 2024 and into 2025, as funds from the Department for Education contract guarantee cashflow.

“This should reassure people that whilst we are trading on the back of an uncertain year in the tech industry, we have our core revenue forecasts underpinned,” chief executive Chris Hill commented.

Funding will be received for Northcoders’ core business-to-consumer software, data and cloud engineering bootcamp courses under the contract.

This latest contract marks the fourth consecutive year in which Northcoders has won increased government funding for such services, meanwhile, with revenue per student jumping by 18.6%.

“These contracts provide us with good dependable cashflow and also quality revenue visibility,” Hill said.

“The best part about these contracts, though, is that they support our mission of making tech careers accessible for people from all walks of life.”

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