REG - Northcoders Group - Government Funding and Trading Update

NorthcodersAnnouncement

10/07/2025 07:00

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RNS Number : 4415Q  Northcoders Group PLC  10 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.

 

 For immediate release     10 July 2025

 

 

Northcoders Group PLC

('Northcoders', the 'Group' or the 'Company')

 

Government Funding and Trading Update

Northcoders (AIM:CODE), a market leader in technology training in the UK,
today provides a Government funding and trading update.

On 25 April 2025, the Group confirmed that Government funding would move to a
fully regional model whereby Skills Bootcamp programmes would be funded via
localised structures.

It had been anticipated that many of the regional authorities would have made
funding awards by this time, however, while multiple bids remain pending,
 several regional authorities have yet to issue tenders or confirm exact
future funding allocations. We continue to receive updates suggesting delays,
rather than cancellations.

We remain confident in the long term funding outlook due to our proven track
record and reputation in the market, as evidenced by our recent OFSTED
Outstanding accreditation and the demand for high quality Northcoders'
graduates. Additionally, Skills England has highlighted several structural
trends that strongly align with Northcoders' business and diversified delivery
model: a shift towards modular, flexible and shorter-form training; increasing
demand for AI and digital skills; and a growing preference among SMEs for
fast-track upskilling programmes.

However, until greater clarity emerges, we cannot accurately predict the
timing of income from Government-backed contracts. As a result, the Group
expects revenue and profitability to be unpredictable for the remainder of the
current year and we are therefore unable, with confidence, to support current
market expectations.

Our B2B Counter® consultancy division continues to make positive progress, on
which we look forward to updating the market in our upcoming trading update.
Additional investment continues in areas such as AI, data engineering,
corporate training solutions and adaptable learning models that meet the
evolving needs of learners and employers.

In addition, the Group has taken decisive steps to control costs where
possible. These include a reduction in annualised fixed costs of approximately
£3.25 million, representing a 40% decrease on 2024's reported cost base. Cost
reductions have been strategically planned to reduce risk while still allowing
for continued investment into core areas of long-term growth and help, where
possible, to protect gross margins. The Company's current cash balance is
£2.25 million.

We remain confident in maintaining our positive cash position. The Group's
existing £10 million contract with the DfE, which concludes later this year,
continues to provide a solid foundation for the Group and helps offset some of
the near-term headwinds, generating cash for many months ahead.

Chris Hill, Chief Executive Officer, commented:

"We are pleased with the continued progress made in diversifying Northcoders
revenues whilst the Government funding transition takes place. However we are
deeply frustrated by the delays, and believe that ultimately they are
impacting the delivery of vital digital skills in the UK workforce. We remain
confident that clarity regarding digital skills funding, which remains high on
the Government's agenda for national growth, will crystallise soon and that
our blend of technical excellence, strong employer relationships and new
growth areas like Counter® will leave us in a stronger position once the
landscape settles. Ultimately, we remain entirely aligned with the long-term
direction of travel - skills, digital and AI remain core national priorities.
Northcoders is exceptionally well positioned to deliver future growth in these
areas.

"I want to thank our team for their continued energy and resilience during
this period.  We have taken difficult but necessary steps to manage our cost
base while continuing to invest in the areas experiencing strong demand, for
example AI training, and in scaling our Counter consultancy division.  The
Board believes that these investments, along with the strength of our brand,
operational capabilities and quality assurance, position us well for recovery
and long-term success once the funding environment stabilises."

 

Ends

 For further enquiries:

Northcoders Group plc                          Via Burson Buchanan
 Chris Hill, CEO                                Tel: +44 (0) 20 7466 5000
 Charlotte Prior, CFO                           investors.northcodersgroup.com (https://investors.northcodersgroup.com)

 Zeus (Nominated Adviser & Joint Broker)        Tel: +44 (0) 20 3829 5000
 Mike Coe / Darshan Patel (Investment Banking)

 Fraser Marshall / George Krokos (Sales)

 

Peterhouse Capital Limited (Joint Broker)  Tel: +44 (0) 20 7496 0930
 Martin Lampshire                           www.peterhousecap.com (http://www.peterhousecap.com/)
 Lucy Williams

Duncan Vasey

 Burson Buchanan                            Tel: +44 (0) 20 7466 5000
 Henry Harrison-Topham                      northcoders@buchanan.uk.com (mailto:northcoders@buchanan.uk.com)
 Steph Whitmore                             www.bursonbuchanan.com (http://www.bursonbuchanan.com/)

 Jesse McNab

 

 Peterhouse Capital Limited (Joint Broker)  Tel: +44 (0) 20 7496 0930
 Martin Lampshire                           www.peterhousecap.com (http://www.peterhousecap.com/)
 Lucy Williams

Duncan Vasey

 Burson Buchanan                            Tel: +44 (0) 20 7466 5000
 Henry Harrison-Topham                      northcoders@buchanan.uk.com (mailto:northcoders@buchanan.uk.com)
 Steph Whitmore                             www.bursonbuchanan.com (http://www.bursonbuchanan.com/)

 Jesse McNab

 

 

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 (https://investors.northcodersgroup.com) .

 

 

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