Corporate News
H1-2025 Trading Update
30 July 2025
This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended ('MAR'). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.
Northcoders (AIM:CODE), a UK-based provider of technology training, provides the
following trading update for the six months ended 30 June 2025 (the 'Period' or
'H1-2025'). Despite a challenging operating environment, the Group has delivered
improved profitability and maintained a resilient balance sheet, reflecting its
disciplined focus on cost control, delivery efficiency and revenue diversification.
Revenues for H1-2025 are expected to be £3.7 million (H1-2024: £4.4 million), reflecting
the previously announced slower access to Government funding. Nevertheless, gross profit
margin is expected to increase to 70% (H1-2024: 67%), driven by enhanced delivery
efficiency and cost control. Adjusted EBITDA is anticipated to be approximately £0.4
million (H1-2024: £0.4 million).
The Group retains a solid cash balance of £2.3 million (H1-2024: £1.3 million), which
will be £2.7 million as at 31 July 2025, giving flexibility to adapt to market
conditions and continue strategic investments selectively.
Training Bootcamps
Performance within Training Bootcamps was mixed due to the change in Government funding
structure. Applications were 2,608 (H1-2024: 6,766), with registrations reaching 1,608
(H1-2024: 4,959). Privately funded places, however, increased 30% to 43 (H1-2024:33).
Whilst a low base this has been an important step forward for the Group and continues to
increase into H2-2025.
Northcoders' leading reputation in the market continues to position the Company strongly
for future growth, with graduate placement rates stable and significantly above the
national average. Furthermore, the Group was extremely pleased to announce the award of
an OUTSTANDING rating in its recent OFSTED inspection. This rating puts Northcoders into
the top 6% of UK Further Education providers delivering apprenticeships and skills
training across all sectors and highlights the ongoing commitment to quality training
and outcomes for students.
The inaugural Data and AI course launched in June 2025 with positive early feedback from
students, and we are excited by the opportunity that movement into this area provides.
The course teaches both beginners and more advanced students the skills needed to
progress in the tech industry during the evolution of AI. It is only available when
privately funded, including to students who receive loans through the Group's
third-party provider, StepEx.
The part-time coding bootcamp has also gone from strength to strength, with early job
offers being made to students prior to course completion. The introductory offer has
finished, and this course is now being charged at full price to privately paying
customers. This has also been a focus of the Group, as it continues the strategy to
diversify revenues away from public funding.
Regional Government funding has been significantly slower than expected, with many
councils postponing outcomes and delaying start dates. We are still focused on ongoing
engagement with local councils, however, and will continue to bid for funding that suits
our business model and courses. Whilst this will likely put a short-term pressure on the
Group, the Company is confident that with diversification, cost savings, and continued
focus on excellence and agility, Northcoders is well-positioned to emerge stronger and
more resilient.
To date the Group has secured 24 seats through Lancashire Council, and decisions by
numerous other councils across England are expected in the near-term.
COUNTER®
Growth in our challenger corporate consultancy brand, COUNTER®, forms an important part
of the Group's diversification strategy. The division made steady progress in the
Period, proving to be an attractive option for our clients in the current hiring market.
Seven new contracts were secured in H1-2025, with renewals from Manchester Airports
Group and a public sector client, along with new engagements within different functions
at Skipton Building Society, proving high-quality customer satisfaction and model
effectiveness. The division strengthened its sales function in H1-2025 with three new
hires who are now embedded into the team and generating pipeline opportunities/revenue.
Delivery quality and retention remain strong, and the division continues to show
potential to increase its rate of growth in future periods.
Tom Walton's strategic leadership remains a strength, and the Group will continue
investing in COUNTER® to meet demand and identify and capture opportunities.
Current Trading and Outlook
The Group remains cautious due to the uneven regional funding landscape. Critical areas
for the Group include revenue diversification, accelerated development activity into
areas of AI, cash conservation and cost control.
Northcoders will continue to manage costs tightly, deploy capital selectively, and
evaluate new regional delivery opportunities as funding clarity improves, with COUNTER®
being well placed for increased speed of growth in H2-2025, 2026 and beyond.
Efficiencies from NCore, our core technology delivery platform, create significant
operational leverage within the Group, which will ensure profitability of our Training
Bootcamp operations increases as revenues rise.
Chris Hill, Chief Executive Officer of Northcoders, said: "The first half
of 2025 has presented a challenging trading environment and although the top-line
was impacted by the delays to Government funding structures, our focus on
consistently high levels of quality delivery, innovation of AI, efficient delivery
and maintaining a lean operating model have resulted in improved profitability and a
stronger cash position.
"We remain frustrated by the slow rollout of regionally funded Government training,
but our core operations remain robust. COUNTER® continues to develop positively, and
we are pleased with the quality of work being delivered.
"We are taking a prudent, focused approach to the remainder of the year, committed to our mission of enabling access to tech careers and new emerging technologies, while maintaining focus on disciplined execution."
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Notes to Editors
Northcoders is a market leading provider of technology training for businesses and
individuals with courses in, Software Engineering, Data Engineering and Platform
Engineering. Founded in 2015, the Group's business model operates a hybrid
structure with a flagship site in Manchester and other sites in Leeds, Birmingham and
Newcastle supported by a proven digital offering to support its students across the
UK.
Powered by IP rich technology, Northcoders offers boot camp courses to individuals from a
range of backgrounds, delivered through virtual and physical learning. The Group
also works with blue chip corporates across multiple sectors to help them to achieve
their digital requirements, with teams as a service and to supply innovative solutions
for the upskilling and reskilling of employees. With a keen focus of inclusivity,
diversity and quality at its core, Northcoders aims to address the digital skills gap in
the UK to meet the increasing demand for digital specialists at all levels, from
businesses and public agencies.
Northcoders was admitted to trading on AIM in July 2021 with the ticker CODE.L. For additional information please visit investors.northcodersgroup.com.