REG - Northcoders Group - Interim Results
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RNS Number : 2912B Northcoders Group PLC 30 September 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.
30 September 2025
Northcoders Group plc
('Northcoders' or the 'Company')
Interim Results
Northcoders (AIM:CODE), a UK market leading technology training business, is
pleased to announce its results for the six months ended 30 June 2025 ('H1
2025' or the 'Period').
Financial Highlights
· Reported revenue of £3.7 million (H1 2024: £4.4 million)
· Gross margin remained at 67% (H1 2024: 67%)
· Expenditure/ group overheads down 20% year-on-year at £2.1million
(H1 2024: £2.5 million)
· Underlying adjusted EBITDA of £0.4 million (H1 2024: £0.4 million)
with an increased EBITDA margin of 11% (H1 2024: 10%)
· Adjusted EPS 1.28 pence (H1 2024: 2.58 pence)
· Strong balance sheet with net cash of £0.9 million (H1 2024: £0.7
million) excluding lease liabilities, and gross cash of £2.3 million (H1
2024: £1.3 million) following NatWest refinance.
Operating Highlights
• Our B2B Counter® consultancy division expanded contracts within
Skipton Building Society, Manchester Airport Group and a major UK Government
department
• UK Government funding remains unpredictable as more changes to internal
departments are announced
• Group awarded OFSTED ('Office for Standards in Education, Children's
Services and Skills') 'Outstanding' across all areas, making Northcoders in
the top 6% of higher education providers nationally
• Next Gen Data & AI Course launched with 100% private funding
• 24 seats secured for Lancashire Skills Bootcamp funding in the
Training Bootcamps division.
Current trading and outlook
• Counter® secures new £0.5 million contract with leading provider
of business management software
• The Group continues to carefully monitor overheads to align with
Group revenue and take swift action in response to the unpredictable UK
training landscape whilst focusing on quality client outcomes
• AI and digital transformation are rapidly reshaping the workforce
driving corporate demand for senior technologists
• Charlotte Prior, CFO, has notified the Board of her intention to
step down as CFO and as a Director of the Company with effect from 6 April
2026.
Chris Hill, CEO of Northcoders, commented:
"In a dynamic landscape where digital transformation is a necessity,
Northcoders continues to demonstrate its leading market reputation. Whilst
navigating a challenging UK Government funding environment for our B2C
operations, we have delivered stable profitability, which is testament to our
robust operational efficiencies and the scalable power of our NCore platform.
"The immediate environment remains challenging, with regional funding delays
expected to affect H2 2025 revenues with non-recurring costs expected in the
second half of 2025. Although we expect the second half of the year to be
weaker than the first, the Group's strong cash position, proven ability to
adapt, and commitment to disciplined execution provide a solid foundation for
future growth and a return to profitability in 2026.
"The Board is confident that the decisive steps being taken now, will enable
Northcoders to capitalise on significant long-term opportunities in technology
skills and services with an agile and innovative approach, as the Group
continues to create life-changing opportunities for individuals from all walks
of life and delivering greater value for our shareholders"
Investor Meet Company presentation
Northcoders will be presenting via the Investor Meet Company platform today at
12:00 p.m. (BST). The meeting will be hosted by Chris Hill (CEO) and Charlotte
Prior (CFO), and there will be an opportunity for Q&A at the end of the
session. Questions can be submitted pre-event via the Investor Meet Company
dashboard up until 9.00 a.m. the day before the meeting or at any time during
the live presentation. To sign up to the Northcoders Group presentation via
Investor Meet Company please click the following link:
https://www.investormeetcompany.com/northcoders-group-plc/register-investor
(https://www.investormeetcompany.com/northcoders-group-plc/register-investor)
.
- 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 7469 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 7469 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
an online teaching model with head office in Manchester.
Powered by IP rich technology, Northcoders offers bootcamp courses to
individuals from a range of backgrounds, delivered through virtual 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/index)
.
Introduction
The Board is pleased to present the Group's results for the six months ended
30 June 2025 ('H1 2025'). The Group achieved stable profitability, underpinned
by cost control and further efficiencies delivered through our proprietary
learning platform, NCore. This performance reflects Northcoders' growing
reputation for high-quality technology education and its pivot to B2B
consultancy, while the strengthening of internal platforms continues to
support scalable delivery with reduced staff cost.
Financial performance remained resilient despite a softer revenue environment,
with reported revenue of £3.7 million (H1 2024: £4.4 million). Gross
margin was maintained at 67%, while underlying adjusted EBITDA held steady at
£0.4 million, with EBITDA margin increasing to 11% (H1 2024: 10%). Adjusted
EPS was 1.28 pence (H1 2024: 2.58 pence). The balance sheet strengthened
further, supported by the NatWest refinance, with net cash of £0.9 million
(H1 2024: £0.70) excluding lease liabilities, and gross cash of £2.3 million
at period end (H1 2024: £1.3 million).
Operational review
As government funding for training bootcamps becomes more unpredictable, the
Group has acted promptly to regain control of its revenue model and strategic
vision. Instead of awaiting clarity on future frameworks, Northcoders is
proactively repositioning its B2C training business and boosting the growth of
Counter®, its B2B challenger consultancy brand, enabling the Group to protect
its assets and refocus capacity and capability to Counter®.
Through the Northcoders brand, the Group has established an excellent
reputation for quality and results, recently strengthened by an 'Outstanding'
OFSTED rating. Tech Returners has developed a proven model for supporting
career changers and returners, a group often overlooked in the technology
sector but essential for increasing diversity and meeting the demand for
experienced engineers. Counter® combines these strengths within a disruptive
model that challenges the outdated traditional hire-train-deploy offering and
large-scale consulting business model.
By offering clients blended teams of highly skilled engineers either from
Northcoders' Alumni, or other highly qualified engineers who will transition
to become highly effective Counter® technology engineers and consultants,
that transition to the client at the end of an assignment creating long-term
value. Supported by Northcoders' training expertise and Tech Returners'
access to overlooked talent, Counter® provides a more cost-effective,
higher-quality alternative to both existing and traditional providers.
The Board believes that this approach pivots the Group towards the current
demands of the technology sector and away from a very unpredictable public
funding arena which demands a high fixed cost base to operate following the
Government's recent changes. Demand for mid-level and senior technologists
remains strong, while AI and digital transformation are rapidly reshaping the
workforce. The Group's operations and strategy are evolving to keep pace
with these changes by integrating AI-enabled practices into both our training
modules and the delivery of Counter's assignments. These initiatives ensure
that Northcoders-trained engineers are equipped not only with current core
skills but also with the tools needed to thrive in the changing digital
landscape. By aligning our model with these trends, the Group is confident
it will develop a leaner, higher-margin business that is less dependent on
public funding and better aligned to creating shareholder value.
Counter® has made encouraging progress, expanding existing engagements with
Skipton Building Society, Manchester Airport Group and a major governmental
department while building a growing pipeline of exciting prospects across both
the private and public sectors. Counter® has now moved beyond pilots into
longer term assignments, with a significant new contract secured post period
end with a leading technology platform provider in the SaaS sector, a new
vertical for the Group sitting outside of financial services, aviation and
central government. Investment has also been made into strengthening
Counter®'s engagement and project success team to ensure excellence in
delivery, reflecting the growth of current client accounts and enhancing the
probability of securing return customers alongside a growing pipeline of new
client prospects. In addition, frameworks such as G-Cloud, are enabling the
Counter® engagement team to uncover new opportunities across both private and
public sector while strengthening the longevity of current client
relationships.
In parallel, the Group has taken further steps to reduce its fixed cost base
and strengthen its financial resilience. The Board has adopted a disciplined
stance on overheads and non-essential expenditure, while ensuring the
organisation retains sufficient agility to respond quickly to new
opportunities. These actions are designed to align the business to current
market conditions while protecting the Group's ability to capitalise on growth
opportunities as they become available.
The Board is also focused on securing further Skills Bootcamp funding and has
a high level of confidence in future outcomes, based on live conversations and
bids in progress. We secured 24 seats under the Lancashire Skills Bootcamp
funding initiative and outcomes across the board remain excellent, with 99% of
students completing their courses and securing an interview with a potential
employer or moving on to self-employment.
Looking ahead, Skills Bootcamp contracts are expected to be deployed more
selectively, as a strategic mechanism to support Counter's® expansion into
new disciplines and geographies. Furthermore, we successfully launched the
Next Gen Data & AI course, fully funded through private sources.
Financial Review
Northcoders delivered a solid performance in the Period, generating underlying
adjusted EBITDA of £0.4 million (H1 2024: £0.4 million), with EBITDA margin
improving to 11% (H1 2024: 10%). This reflects the continued efficiencies
achieved through the Group's core learning platform, NCore, and disciplined
cost management.
Revenue for the Period was £3.7 million (H1 2024: £4.4 million), with the
remaining Skills Bootcamp seats being the principal contributor and with a
growing contribution from Counter.
Gross margin was maintained at a strong 67% (H1 2024: 67%). Adjusted
earnings per share were 1.28 pence (H1 2024: 2.58 pence). Expenditure/ group
overheads are down 20% year on year at £2.1million (H1 2024: £2.5 million),
with a further reduction expected in FY 2025 and 2026.
The balance sheet strengthened further, with period-end cash of £2.3 million
(H1 2024: £1.3 million), following the successful NatWest refinance,
providing the Group with greater financial flexibility to support future
growth.
CFO succession
In addition, the Board announces that Charlotte Prior, Chief Financial
Officer, has notified the Board of her intention to step down as Chief
Financial Officer and as a Director of the Company with effect from 10 April
2026 for personal reasons. Charlotte will oversee the completion of the
current financial year as well as providing an orderly handover of CFO duties
to her successor.
The Board will shortly initiate a succession plan and a further announcement
regarding this plan will be made in due course.
Outlook
The immediate environment remains challenging, with regional funding delays
affecting H2 2025 revenues and non-recurring costs expected in the second half
of 2025. Although we expect the second half of the year to be weaker than
the first, the Group's strong cash position, proven ability to adapt, and
commitment to disciplined execution provide a solid foundation for future
growth and a return to profitability in 2026.
The Board is confident that the decisive steps being taken now, repositioning
bootcamps and training delivery predominantly to support Counter®
recruitment, enhancing the Tech Returners programme to achieve the same goal,
able to deliver local bids where needed and accelerating Counter®. This
will enable Northcoders to capitalise on significant long-term opportunities
in technology skills and services with an agile and innovative approach to
current organisational solutions, while continuing to create life-changing
opportunities for individuals from all walks of life and delivering greater
value for our shareholders.
Chris Hill
Chief Executive Officer
30 September 2025
Group Statement of Comprehensive Income
For the period ended 30 June 2025
6 months ended 6 months ended Year ended
30 June 2025 30 June 2024 31 December 2024
Notes UNAUDITED UNAUDITED AUDITED
£ £ £
Revenue 3,671,043 4,353,628 8,819,083
Cost of sales (1,213,889) (1,442,751) (2,916,871)
Gross profit 2,457,154 2,910,877 5,902,212
Other operating income - - 1,000
Expenditure (2,051,967) (2,463,001) (4,922,462)
Adjusted EBITDA 405,187 447,876 980,750
Depreciation (106,645) (69,700) (131,838)
Amortisation & impairment (115,152) (125,405) (265,716)
Share based payment expense (32,100) (98,055) (138,446)
Total administrative expenditure (2,305,864) (2,756,161) (5,458,462)
Non-recurring items (47,090) - -
Operating profit/(loss) 104,200 154,716 444,750
Investment revenues 15,304 16,255 29,957
Finance costs (56,055) (52,834) (85,843)
Profit/(loss) before tax 63,449 118,137 388,864
Taxation 7,312 (9,730) (9)
Net profit/(loss) after tax 70,761 108,407 388,855
Other comprehensive income:
Tax relating to items not reclassified (9,894) (5,019) (32,746)
Total comprehensive income/loss for the year attributable to equity 60,867 103,388 356,109
shareholders of the parent
Earnings per share
Basic (pence per share) 3 0.88 1.35 4.85
Diluted (pence per share) 3 0.88 1.34 4.85
Adjusted (pence per share) 3 1.28 2.58 6.58
Group Statement of Financial Position
As at 30 June2025
Notes 30 June 2025 30 June 2024 31 December 2024
UNAUDITED UNAUDITED AUDITED
£ £ £
Non-current assets
Goodwill 1,310,086 1,310,086 1,310,086
Intangible assets 4 1,992,527 1,907,123 2,054,942
Property, plant and equipment 258,000 267,534 222,149
Deferred tax assets 91,060 123,415 127,807
3,651,673 3,608,158 3,714,984
Current assets
Contract assets 1,199,756 1,488,995 1,624,485
Trade and other receivables 617,909 673,932 454,363
Current tax receivable 39,069 64,617 4,900
Cash and cash equivalents 2,296,082 1,308,379 1,185,780
4,152,816 3,535,923 3,271,528
Current liabilities
Trade and other payables 810,296 1,174,443 978,219
Contract liabilities - 112,969 73,557
Current tax liabilities - - -
Borrowings 373,718 259,749 258,276
Lease liabilities 92,101 114,509 47,583
1,276,115 1,661,670 1,357,635
Net current assets 2,876,701 1,874,253 1,913,893
Non-current liabilities
Borrowings 1,002,877 341,932 216,989
Lease liabilities 120,356 121,417 99,844
Deferred tax provision - - -
1,123,233 463,349 316,703
Net assets 5,405,141 5,019,062 5,312,174
EQUITY
Called up share capital 80,115 80,115 80,115
Share premium account 4,801,444 4,801,444 4,801,444
Share option reserve 403,763 499,769 401,714
Merger reserve 500 500 500
Other reserve 946,774 946,774 946,774
Retained earnings (827,455) (1,309,540) (858,322)
Total equity 5,405,141 5,019,062 5,312,174
Group Statement of Changes in Equity
For the period ended 30 June 2025
Share Share Share option reserve Merger reserve Other reserve Retained earnings Total equity attributable to owners of the parent
capital premium
£ £ £ £ £ £ £
At 1 January 2024 (audited) 80,115 4,801,444 401,714 500 946,774 (1,412,928) 4,817,619
Profit for the period - - - - - 108,407 108,407
Other comprehensive income:
Tax adjustments on share based payments - - - - - (5,019) (5,019)
Total comprehensive income - - - - - 103,388 103,388
Share option expense - - 98,055 - - - 98,055
At 30 June 2024 (unaudited) 80,115 4,801,444 499,769 500 946,774 (1,309,540) 5,019,062
Profit for the period - - - - - 280,448 280,448
Other comprehensive loss:
Tax adjustments on share based payments - - - - - (27,727) (27,727)
Total comprehensive income - - - - - 252,721 252,721
Adjustment to share capital issue - - - - - - -
Share option and warrants expense - - - - - - -
Cancellation of share options - - (168,497) - - 168,497 -
Share option expense - - 40,391 - - - 40,391
Issue of share capital - - - - - - -
At 31 December 2024 (audited) 80,115 4,801,444 371,663 500 946,774 (888,322) 5,312,174
Profit for the period - - - - - 70,761 70,761
Other comprehensive income:
Tax adjustments on share based payments - - - - - (9,894) (9,894)
Total comprehensive income - - - - - 60,867 60,867
Share option expense - - - - - -
Issue of share capital - - 32,100 - - - 32,100
At 30 June 2025 (unaudited) 80,115 4,801,444 403,763 500 946,774 (827,455) 5,405,141
Group Statement of Cashflows
For the period ended 30 June 2025
Notes 6 months 6 month Year ended
ended ended 31 December
30 June 2025 30 June 2024 2024
UNAUDITED UNAUDITED AUDITED
£ £ £
Cash flows from operating activities:
Profit/(loss) for the year 70,761 108,407 388,855
Adjustments for:
Tax (credit)/charge (7,312) 9,730 9
Finance costs 56,055 52,834 85,843
Investment income (15,304) (16,255) (29,957)
Gain (Loss) on disposal of PPE - - (246)
Share based payment expense 32,100 98,055 138,446
Amortisation of intangible assets 148,960 125,405 263,842
Depreciation of tangible assets 76,644 69,700 131,838
361,904 447,876 978,630
Movements in working capital:
(Increase)/decrease in contract assets 424,729 (80,644) (226,467)
(Increase)/decrease in trade and other receivables (161,546) (12,541) 215,361
Decrease in contract liabilities (167,927) (152,820) (132,943)
Increase/(decrease) in trade and other payables (73,558) 212,328 109,014
Cash generated from operations 383,602 414,199 943,595
Income taxes refunded - - 32,383
Net cash inflow from operating activities 383,602 414,199 975,978
Cash flows from investing activities
Purchase of intangible assets (86,545) (285,128) (571,384)
Purchase of property, plant and equipment (182) (20,248) (38,411)
Proceeds of disposal of property, plant and equipment 1,423 - 1,656
Payment of deferred consideration - (85,905) (240,902)
Purchase of subsidiaries - - -
Interest received 15,304 16,255 29,957
Net cash (used in) investing activities (70,000) (375,026) (819,084)
Cash flow from financing activities 1,466,400 - -
Proceeds from borrowings
Repayments of bank loans and borrowings (564,940) (171,985) (292,520)
Payment of lease liabilities (59,282) (137,714) (218,755)
Interest paid (45,478) (38,267) (77,011)
Net cash from/(used in) financing activities 796,700 (347,966) (588,286)
Net increase/(decrease) in cash and cash equivalents 1,110,302 (308,793) (431,932)
Cash and cash equivalents at beginning of the period 1,185,780 1,617,172 1,617,172
Cash and cash equivalents at end of the period 2,296,082 1,308,379 1,185,780
Notes to the Interim Statements
For the period ended 30 June 2025
1. General information
Northcoders Group Plc is a public company limited by shares incorporated in
England and Wales. The registered address of the Company is Bloc, 17 Marble
Street, Manchester, United Kingdom, M2 3AW. The consolidated financial
statements (or "financial statements") incorporate the financial statements of
the Company and entities (its subsidiaries) controlled by the Company
(collectively comprising the "Group").
The principal activity of the Group is the provision of digital training
courses.
2. Accounting policies
2.1. Basis of preparation
The financial information set out in these interim consolidated financial
statements for the six months ended 30 June 2025 is unaudited. The financial
information presented are not statutory accounts prepared in accordance with
the Companies Act 2006, and are prepared only to comply with AIM requirements
for interim reporting. Statutory accounts for the year ended 31 December 2024,
on which the auditors gave an audit report which was unqualified and did not
contain a statement under Section 498(2) or (3) of the Companies Act 2006,
have been filed with the Registrar of Companies.
These financial statements have been prepared in accordance with international
accounting standards ("IFRS") as adopted by the United Kingdom ("UK") insofar
as these apply to interim financial statements.
The interim consolidated financial statements have been prepared using
consistent accounting policies as those adopted in the financial statements
for the year ended 31 December 2024.
The interim consolidated financial statements are prepared in sterling, which
is the functional currency of the group. Monetary amounts in these interim
consolidated financial statements are rounded to the nearest £1.
The financial statements have been prepared on the historical cost basis,
modified to include the revaluation of certain financial instruments at fair
value.
2.2. Basis of consolidation
The Group financial statements consolidates those of the parent company and
the subsidiaries of which the parent has control. Control is established when
the parent is exposed, or has rights, to variable returns from its involvement
with the subsidiary and has the ability to affect those returns through its
power over the subsidiary.
Where a subsidiary undertaking is acquired/disposed of during the year, the
consolidated profits or losses are recognised from/until the effective date of
the acquisition/disposal, being the date on which control is obtained or lost.
All inter-company balances and transactions between group companies have been
eliminated on consolidation.
Where necessary, adjustments are made to the financial information of
subsidiaries to bring the accounting policies used into line with those used
by the Group.
The Group applies the acquisition method of accounting for business
combinations enacted after the date of creation of the Group, as detailed
further below. The consideration transferred by the Group to obtain control of
a subsidiary is calculated as the sum of the acquisition-date fair value of
assets transferred by the Group, liabilities incurred by the Group to the
former owners of the acquiree and the equity interest issued by the Group.
Acquisition costs are expensed as incurred.
The Group recognises identifiable assets acquired and liabilities assumed in a
business combination regardless of whether they have been previously
recognised in the acquired subsidiary's financial information prior to the
acquisition. Assets acquired and liabilities assumed are measured at their
acquisition-date fair values.
2.3. Going concern
As at 30 June 2025 the Group had significant net assets and cash.
In preparing the interim financial statements, the directors have considered
the principal risks and uncertainties facing the business, along with the
Group's objectives, policies and processes for managing its exposure to
financial risk. In making this assessment the directors have prepared cash
flows for the foreseeable future, being a period of at least 12 months from
the expected date of approval of the interim financial statements.
Forecasts are adjusted for reasonable sensitivities that address the principal
risks and uncertainties to which the Group is exposed, thus creating a number
of different scenarios for the board to challenge including "stress" case
scenarios. Overall the directors do not believe that the outcomes of such
testing gives rise to a material uncertainty around going concern.
At the time of approving the interim financial statements, the directors have
a reasonable expectation that the Group has adequate resources to continue in
operational existence for the foreseeable future. Thus, the Directors continue
to adopt the going concern basis of accounting in preparing the interim
financial statements.
2.4 Revenue
Revenue from providing services is recognised in the accounting period in
which the services are rendered. Services are typically provided over short
periods of time, spanning typically a few months at most. However, for
fixed-price contracts that span accounting periods, revenue is recognised
based on the actual service provided to the end of the reporting period as a
proportion of the total services to be provided because the customer receives
and uses the benefits simultaneously. Where the Group has contracts where the
period between the transfer of the promised services to the customer and
payment exceeds one year, the Group adjusts transaction price for the time
value of money . Revenue is determined as follows:
· For consumer training bootcamps, income is received in advance of the
service being provided and is recognised on a pro-rata basis across the course
delivery, based on delivery dates for those courses. Apprenticeship income is
a funding mechanism for the consumer revenue stream. The Group receives
lump-sum drawdowns at regular intervals, which typically are billed in arrears
resulting in accrued income. In addition the Group receives a contingent
success fee, payable at the end. The Company makes an assessment of the
probability of success and accrues this on a percentage of completion basis as
the course progresses.
· For Business Solutions, amounts are invoiced in arrears for
development work performed along with any associated costs, based on the
number of hours spent on each contract at agreed contractual rates for those
delivering the course. Where appropriate, any amounts to be invoiced are
recognised as accrued revenue, and any amounts invoiced in advance are
recognised as deferred revenue, in line with performance obligations per
contracts with customers.
· For consultancy contracts, amounts are recognised on a pro-rata basis
throughout the length of the contract unless a performance obligation states
otherwise.
· For conference events, income is recognised once the event has taken
place. Any income received in advance is recognised as a contract liability
until the performance obligation has been satisfied.
Determining the transaction price
The Group's revenue on over-time sales is generally based on fixed price
contracts but these are subject to more variability as a result of the nature
of the contract. Any variable consideration is constrained in estimating
contract revenue in order that it is highly probable that there will not be a
future reversal in the amount of revenue recognised when the final amounts of
any variations has been determined.
Allocating amounts to performance obligations
Where the contracts include multiple performance obligations, which are
determined to be separate performance obligations, the transaction price will
be allocated to each performance obligation based on the stand-alone selling
prices. Where these are not directly observable, they are estimated based on
expected cost plus margin.
2.5 Development assets
Expenditure on research activities, undertaken with the prospect of gaining
new scientific or technical knowledge and understanding, is recognised in the
income statement as an expense as incurred. Development costs incurred are
capitalised after the point at which the commercial and technical feasibility
of the product have been proven, and the decision to complete the development
has been taken and resources made available. The expenditure capitalised is
solely the cost of direct labour. Capitalised development expenditure is
stated at cost less accumulated amortisation and impairment losses.
Amortisation begins when an asset is acquired or becomes available for use and
is calculated on a straight-line basis to allocate the cost of assets over
their estimated useful lives as follows:
Licence 4
years straight line
Technology 5 years
straight line
Development costs 10 years straight line
Brand
6 years straight line
Customer relationships 6 years straight line
Customer contracts 6 years straight line
3. Earnings per share
The calculation of the basic and diluted earnings per share is based on the
following data:
Earnings 6 months ended 6 months ended Year ended
30 June 2025 30 June 2024 31 December 2024
UNAUDITED UNAUDITED AUDITED
£ £ £
Earnings for the purpose of basic earnings per share being net profit 70,761 108,407 388,855
attributable to owners of the parent
Earnings for the purposes of diluted earnings per share 70,761 108,407 388,855
Number of shares 6 months ended 6 months ended Year ended
30 June 2025 30 June 2024 31 December 2024
UNAUDITED UNAUDITED AUDITED
£ £ £
Weighted average number of ordinary shares for the purposes of basic earnings 8,011,469 8,011,469 8,011,469
per share
Effects of dilutive potential ordinary shares - 58,484 7,945
Weighted average number of ordinary shares for the purposes of diluted 8,011,469 8,069,953 8,019,414
earnings per share
Earnings per share
Earnings 6 months ended 6 months ended Year ended
30 June 2025 30 June 2024 31 December 2024
UNAUDITED UNAUDITED AUDITED
Pence per weighted average shares 0.88p 1.35p 4.85p
Pence per weighted average diluted shares 0.88p 1.34p 4.85p
The Directors use adjusted earnings before exceptional costs and share based
payment expenses. This creates an alternative performance measure which the
Directors believe reflects a fair estimate of ongoing profitability and
performance. The calculated Adjusted Earnings for the current period of
accounts is as follows:
Adjusted Earnings per Share 6 months ended 6 months ended Year ended
30 June 2025 30 June 2024 31 December 2024
UNAUDITED UNAUDITED AUDITED
£ £ £
Profit/(loss) after taxation 70,761 108,407 388,885
Adjusted for:
Share-based payment expense 32,100 98,055 138,446
Non-recurring costs - -
Adjusted Earnings 102,861 206,462 527,331
Pence per weighted average shares 1.28p 2.58p 6.58p
Pence per weighted average diluted shares 1.28p 2.56p 6.58p
4. Intangible fixed assets
Development costs Customer relationships and contracts Total
£ £ £
Technology Brand
£ £
Cost
At 1 January 2025 164,706 2,378,315 140,160 53,513 2,736,694
Additions - 86,545 - - 86,545
Disposals - - - - -
At 30 June 2025 164,706 2,464,860 140,160 53,513 2,823,239
Amortisation and impairment
At 1 January 2025 63,137 556,747 44,773 17,095 681,752
Amortisation charged for the period 116,350 148,960
16,471 11,680 4,459
Eliminated on disposals - - - -
At 30 June 2025 79,608 673,097 56,453 21,554 830,712
Carrying amount
At 30 June 2025 85,098 1,791,763 83,707 31,959 1,992,527
At 31 December 2024 101,569 1,821,568 95,387 36,418 2,054,942
- Ends -
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