REG - Northcoders Group - H1-2025 Trading Update

NorthcodersAnnouncement

30/07/2025 07:02

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RNS Number : 0811T  Northcoders Group PLC  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.

 

 For immediate release  30 July 2025

 

 

Northcoders Group PLC

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

 

H1-2025 Trading Update

 

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."

 

- 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 (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 (Financial Communications)  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 (Financial Communications)  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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