Manchester-based technology training firm Northcoders Group plc said its 2025 revenue fell about 44% to £4.9 million “as a result of Northcoders’ strategic reset in response to structural changes in UK government skills funding.”
Northcoders reported a loss before tax of £2.9 million.
But the firm reported significant progress within its consultancy division Counter, which increased revenue 77% to £1.5 million “driven by repeat contracts, extensions to current engagements and new client wins.”
Northcoders has a flagship site in Manchester and other sites in Leeds, Newcastle and Birmingham.
On current trading and uutlook, Northcoders said: “Building on positive momentum in 2025 the Group has made a strong start to FY26, with Counter continuing to benefit from increasing levels of repeat contracts and extensions to existing engagements, improving revenue predictability.
“Approximately £1.5 million of Counter revenue contracted, to be recognised in 2026 with a further £1.0 million+ pipeline deals at final stage.
“The Group has over £4.0 million of pipeline deals at multiple stages with actively engaged prospects, covering both current and new clients, providing further confidence.
“In Q1, Counter has gained multiple ISO accreditations (ISO 9001, 14001, 27001), which, in parallel with the recently awarded places on government frameworks gives the brand significant competitive advantage and credibility, especially within the public sector, critical infrastructure and financial services.
“The B2C training bootcamps division continues to see strong demand across both government-funded and privately funded pathways, particularly in London, where application levels remain high.
“Early delivery of the Group’s Data Engineering, AI and Machine Learning programmes has been encouraging, supporting diversification into higher-value training aligned with employer demand.”
Northcoders CEO Chris Hill said: “I am proud of Northcoders’ swift and decisive response to the changes in UK government funding for digital skills, and our efforts to fundamentally reshape the business by focusing on B2B consultancy revenue whilst significantly reducing the cost base, have positioned us strongly for the future.
“These actions were taken with a clear focus on protecting long-term shareholder value and positioning the Group for future growth.
“Our B2B division, Counter, has continued to build momentum, supported by repeat contracts, extensions and new client wins. Our B2C training bootcamps division remains a critical engine for talent and demand generation, particularly in key regions such as London. At the same time, we have aligned our curriculum with the fastest-growing areas of employer demand, including data, AI and cloud technologies.
“Whilst market conditions remain mixed in the near term, the long-term requirement for technology skills and services is significant and we are entering FY26 as a leaner, more focused and resilient business. With a strengthened pipeline, improved visibility and a clearer strategic direction, the Board remains confident in Northcoders’ ability to deliver sustainable growth and long-term value for shareholders.”