REG - Northcoders Group - Trading Update

NorthcodersAnnouncement

27/01/2026 07:00

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RNS Number : 4226Q  Northcoders Group PLC  27 January 2026

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.

27 January 2026

 

Northcoders Group plc

('Northcoders' or the 'Company')

 

Trading Update

 

'Resilient performance in a challenging environment underpinned by disciplined

cost management and a strong balance sheet'

 

Northcoders (AIM:CODE), a market leading consultancy and technology training
business, provides the following unaudited trading update for the year ended
31 December 2025 ('FY2025').

 

FY2025 was a challenging year following structural changes to the UK
Government's skills funding system via the Department for Education ('DfE'),
such as regional procurement and altered allocation schedules. These shifts
led to a significant drop in the number of funded learners across the entire
sector. In response, the Board focused on safeguarding the core of the
business by maintaining disciplined cost controls, ensuring operational
resilience, and prioritising higher-quality delivery, particularly in the B2B
consultancy division.

 

Unaudited Group revenue for FY2025 was £5.0 million (FY2024: £8.8 million).
Despite a significant drop in funded learners, the Group kept strong gross
margins thanks to disciplined delivery, careful direct cost management, and a
deliberate move away from a volume based funding approach that was adopted in
some areas of the training sector.

 

During the year, the Group earned around £0.4 million from B2C training
revenue not funded by government, showing promising early progress in
expanding beyond government-backed programmes. This included initial positive
results for the newly introduced Next Gen Data and AI training, which the
Board views as having significant long-term growth potential in line with
employer demand.

DfE funding, where there has been a previous track record of success, has
proved to be supportive, with contracts won in Lancashire and the Greater
London Authority ('GLA'). These contracts have been awarded in line with our
expected seat prices and milestone allocations and will provide students in
those areas with life-changing outcomes. We look forward to expanding these
contracts, especially in London, where demand has been encouraging, with over
30 applications for every available seat. As a result, further funding has
been awarded, adding further revenue visibility to training bootcamps for the
H1 2026 period.

 

Encouragingly Counter®, the Group's B2B challenger consultancy brand,
increased revenue significantly to £1.5 million for FY2025 (FY2024: £0.9
million), a rise of 67%. Total sales booked for the year reached approximately
£2.5 million, with about £1.0 million of contracted revenue rolled over into
FY2026, most of which is expected to be delivered in the first half of the
year. The Counter® pipeline continues to grow and further details can be
found in the Outlook below.

 

In FY2025, the Group carried out various restructuring and efficiency
initiatives which are projected to generate annual savings of around
£1.1million, relative to FY2024. The actions were swiftly implemented to
adjust the cost structure to current market conditions while maintaining
essential delivery capabilities.

 

As of 31 December 2025, the Group's cash balance was £1.6 million, with
approximately £1.2 million in outstanding loans. There are no financial
covenants associated with any of the Group's loan facilities. The Board views
the Group's balance sheet as robust and maintains prudent cash management.

 

The Group anticipates reporting a statutory loss for FY2025, mainly due to the
effects of changes in government funding and impairment of assets no longer
crucial in current delivery.

 

Outlook

 

The Board expects an improved first-half trading period relative to FY2025.

 

Given that external market conditions concerning government-funded skills
programmes will remain uncertain in the short term, we continue to adopt a
cautious and disciplined approach to forecasting, ensuring that robust and
prudent cash management remains a priority.

 

The Group entered FY2026 with improved visibility and momentum, particularly
within Counter®. The first quarter is expected to be predominantly
delivery-focused, supported by contracted revenue carried forward from FY2025.

 

The Group continues to secure and deliver contract wins through the G-Cloud
framework and other established public-sector procurement routes, thereby
strengthening routes to market for Counter® and employer-aligned delivery.

 

With an increased focus on UK technology skills, particularly in AI, and an
insistence that better training and security awareness must be available to
build future economic growth, the Group has a strong pipeline of opportunities
across existing and new clients within Counter®,

 

With a simplified cost base, visible government funding, resilient gross
margins, a strong balance sheet and an expanding B2B proposition, the Board
believes the Group is well placed to grow sustainably as market conditions
stabilise.

 

 

Chris Hill, Chief Executive Officer of Northcoders commented:

 

"Whilst FY2025 was a challenging year for the Group, our performance has been
resilient and our focus on margin resolute. Following significant changes to
the UK skills funding landscape, the number of funded B2C learners decreased
across the sector. In response, we acted decisively by resizing the business,
maintaining strict cost discipline and protecting gross margins, while
continuing to invest selectively in higher-quality, employer-aligned delivery.

 

"We have taken a series of swift, deliberate actions to reposition the
business and create a solid base for the future. Importantly, we ended the
year with a strong balance sheet, no covenant constraints and improving
revenue visibility.

 

"Our challenger consultancy brand, Counter®, continues to build momentum,
supported by contracted revenue, a healthy pipeline of opportunities across
existing and new clients, and recent success in key public-sector frameworks.
As we enter FY2026, with a simplified cost base and a greater delivery focus
in the first quarter, the Board believes Northcoders is well positioned to
build sustainably as market conditions stabilise."

 

- 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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