MIDAS SHARE TIPS: Chris Hill goes from pub chef to coding pioneer
Switch-up: Northcoders owner Chris Hill used to run a gastropub
The Aldwark Arms is a quaint but popular gastropub in North Yorkshire. Once a run-down village inn, the pub was turned around by young chef, Chris Hill and his brother Nick.
But in 2015, Chris, aged 30, wanted a change. The pub was sold and Hill retrained as a software engineer. It was then he discovered that even graduates with computer science degrees were not properly equipped to work in tech. Hill set up Northcoders to put that right.
Today, Northcoders 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 coding bootcamps, designed to lead successful candidates into lucrative new careers.
Competition is fierce, with 14,000 applicants trying for 1,000 places in 2023 but opportunities are open to all, with successful candidates ranging from 17 to 70 and from rail workers to City lawyers.
In 2021, Hill won a contract to train would-be coders as part of the Government's Skills Bootcamp initiative, to help the UK produce more workers in key sectors.
Today, around 80 per cent of Northcoder's Bootcamp applicants are government-funded, and Hill's contract was renewed this year. The group also works directly with businesses to train their employees and parachutes in graduates from its own bootcamp to work on projects.
Last year was tricky for Northcoders. Tech hiring faltered and growth slowed down, just as Hill and his team increased investment in the business. Revenues still rose 27 per cent to £7.1 million but profits slumped from £900,000 to £100,000.
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A swift recovery is expected this year, with earnings bouncing back at least to 2022 levels and sales continuing to rise.
Further gains are forecast for 2025 and beyond. There are high hopes for the company-focused side of the business, with more growth expected from government contracts and from individuals looking for a change, just like Hill once did himself.
Midas verdict: Computer programming is integral to almost everything we do today and Northcoders is helping to make the UK better at it. For adventurous investors keen to back Britain's technical expertise, the shares, at £1.65, are a buy.
Traded on: Aim Ticker: CODE Contact: northcodersgroup.com or 0333 050 4368
