| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 88.40 | 195 |
| Intrinsic value (DCF) | 71.34 | 138 |
| Graham-Dodd Method | 0.74 | -98 |
| Graham Formula | 1.52 | -95 |
Northcoders Group PLC (LSE: CODE.L) is a leading UK-based provider of software coding training programs, catering to individuals, government entities, and corporate clients. Specializing in bootcamp training courses, government-funded apprenticeships, and bespoke training solutions, Northcoders delivers its curriculum through both classroom and online formats. Founded in 2021 and headquartered in Manchester, the company operates in the Education & Training Services sector, a niche within the broader Consumer Defensive industry. With a strong focus on bridging the digital skills gap, Northcoders plays a pivotal role in the UK's tech education landscape, aligning with national initiatives to enhance workforce readiness in software development. The company's hybrid learning model and government partnerships position it as a key player in the growing edtech market.
Northcoders Group PLC presents a compelling investment case with its strong revenue growth (GBp 8.8M) and profitability (net income of GBp 388,855). The company's positive operating cash flow (GBp 928,924) and manageable debt (GBp 622,562) underscore financial stability. However, its negative beta (-0.753) suggests low correlation with broader markets, which may appeal to investors seeking diversification. Risks include reliance on government-funded programs and competition in the crowded edtech space. The lack of dividends may deter income-focused investors, but growth-oriented stakeholders might find value in its scalable training model and UK market penetration.
Northcoders Group PLC competes in the UK's specialized coding education market by leveraging its hybrid delivery model and government partnerships. Its competitive advantage lies in its dual focus on bootcamps (for rapid upskilling) and apprenticeships (for long-term career development), creating multiple revenue streams. The company's Manchester base provides cost advantages compared to London-centric competitors, while its 2021 incorporation allows for modern, agile course structures unburdened by legacy systems. However, as a relatively new entrant, it lacks the brand recognition of established players. Its government-funded programs provide stability but create dependency on policy continuity. The capital expenditure (GBp -609,795) suggests ongoing investment in digital infrastructure, critical for maintaining competitiveness in online delivery. Northcoders' small market cap (GBp 5M) limits scaling potential against better-funded rivals but allows for niche specialization in UK-focused coding education.