Manchester-based technology training firm Northcoders Group plc said on Wednesday it remains frustrated by “the slow rollout of regionally funded Government training” as it published a trading update for the six months ended June 30, 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,” said Northcoders.
“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.”
On current trading and outlook, Northcoders said: “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 CEO Chris Hill 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.”