Final Results

29 April 2026

 

Northcoders Group PLC

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

 

Final Results

 

Northcoders (AIM: CODE), a market leader in technology training and services in the UK, announces its Final Results for the year ended 31 December 2025 ('FY25' or the 'Period').

 

FY25 Financial Highlights

·    As anticipated, Group revenue decreased to £4.9 million (FY24: £8.8 million) as a result of Northcoders' strategic reset in response to structural changes in UK government skills funding

·   Adjusted EBITDA* of £(0.6) million (FY24: £1.0 million), reflecting a short-term lag between restructuring actions and the full realisation of associated cost savings as the Group resets its cost base

·    Robust cash balance of £1.6 million as at 31 December 2025 (FY24: £1.2 million), ready to support the evolved business

·      Delivered approximately £2.1 million of annualised cost savings

·      Secured a new £1.5 million debt facility with NatWest on improved terms, providing flexible capital

 

FY25 Operational Highlights

·    Significant progress within the Group's consultancy division, Counter®, increasing revenue by 77% to £1.5 million (FY24: £0.8 million) driven by repeat contracts, extensions to current engagements and new client wins

•    The division continues to mature, winning private and public sector contracts with frameworks, such as G-Cloud, strengthening routes to market across both public and private sectors

·     Secured highly competitive government-funded B2C training contracts, including with the Greater London Authority ('GLA') reflecting Northcoders' reputation as one of the highest quality training providers

•     GLA further extended the Northcoders contract at the end of FY25

·     Achieved an 'Outstanding' Ofsted rating across all areas, reinforcing Northcoders' position as a leading UK further education provider

·     Northcoders continued to evolve its training modules, successfully launching a Data Engineering, AI and Machine Learning bootcamp, in response to rapidly growing employer demand for AI capability

 

Current Trading and Outlook

·   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

o  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.

 

*Adjusted EBITDA definition - see note 6

 

Commenting on the Final Results, Chris Hill, CEO of Northcoders, 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."

 

Analyst meeting & Investor Meet Company Presentation

The Company will host a live presentation to discuss the results via Investor Meet Company at 12:00pm today.

 

Investors can sign up to Investor Meet Company for free and add to meet Northcoders Group plc via: 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 investors.northcodersgroup.com   Zeus (Nominated Adviser & Joint Broker) Tel: +44 (0) 20 3829 5000 Mike Coe / Darshan Patel (Investment Banking) Fraser Marshall (Sales)     AlbR Capital Limited (Joint Broker) Tel: +44 (0) 20 7469 0930 Martin Lampshire www.albrcapital.com Lucy Williams Duncan Vasey   Burson Buchanan Tel: +44 (0) 20 7466 5000 Henry Harrison-Topham northcoders@buchanan.uk.com Steph Whitmore Jesse McNab www.bursonbuchanan.com

 

Notes to Editors

 

Founded in 2015, Northcoders is a market leading provider of technology training and technology consultancy services for businesses and individuals with courses in Software Engineering, Data Engineering, AI and Machine Learning, and Platform Engineering. The Group's business model operates a hybrid structure with flagship sites in Manchester and London supported by a proven digital offering to support its students across the UK.

 

Powered by IP rich technology, Northcoders offers bootcamp 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.

Chair's statement

 

Introduction

 

Despite the challenges in FY25 in the wider skills sector, I am proud of the swift and decisive actions taken by Northcoders. Structural changes to the UK Government's funding system through the Department for Education (DfE), including a move towards regional funding, significantly reduced the number of B2C funded learners across the market at a time when our B2B consultancy business was still nascent. However, both the strong progress of the B2B business and the B2C divisions' high profile mandate wins such as the Greater London Authority (GLA) demonstrate the credibility and quality of Northcoders reputation in the integral technology training market.

 

The Board prioritised the core of the business; we acted with discipline to resize the cost base, maintain strong gross margins and preserve cash, while ensuring the quality of our delivery remained high.

 

Our focus has been positioning the Group for sustainable long-term growth whilst continuing to accelerate the success of Counter^®, our B2B challenger consultancy brand.

 

Group revenue for FY25 was £4.9 million (FY24: £8.8 million) as a result of a reduction in funded learners in our B2C division. Despite this reduction, we maintained robust gross margins through careful direct cost control and a deliberate shift away from volume-led delivery models adopted elsewhere in the sector, gross margin decreased by 8% year-on-year, driven primarily by a shift in sales mix and an increased contribution from Counter^®, which operates at structurally lower margins. We have remained focused on quality, outcomes and employer alignment rather than pursuing growth at any cost. As at 31 December 2025, the Group had a strong balance sheet with cash of £1.6 million and no EBITDA or cash coverage covenants on its loan facilities.

 

This performance was delivered amid macroeconomic uncertainty, including geopolitical tensions, elevated oil prices and persistent inflation. The Group maintained tight cost control and operational discipline to manage cost pressures and protect margins. The Board considers the balance sheet to be robust and continues to apply prudent cash management in light of ongoing market uncertainty.

 

Protecting quality and strengthening routes to market

 

While government-funded volumes reduced across the sector due to the changes in funding system, the highly competitive B2C contract wins in Lancashire and with the Greater London Authority were highlights of the year. These contracts were achieved at expected seat prices and milestone allocations, reflecting the strength of our delivery model and our reputation for high‑quality outcomes.

 

Demand in London has been particularly encouraging, with application levels significantly exceeding available seats, and a second grant has already been awarded, providing improved visibility into H1 2026.

 

Alongside government‑funded delivery, we generated approximately £0.4 million in private B2C training revenue during the year.

 

This represents early but important progress in diversifying beyond reliance on government-backed programmes. The initial response to our Next Gen Data and AI training has been positive and aligns closely with employer demand for advanced digital and AI capability.

 

Our mission remains clear; to create life‑changing opportunities through high‑quality technology education and to help address the UK's digital skills gap. Even in a constrained funding environment, we continue to see strong underlying demand from individuals seeking careers in technology and from employers requiring modern digital skills.

 

Growth in Counter^® and diversification

 

A key highlight of FY25 was the continued momentum within Counter^®, our B2B challenger consultancy brand. Counter^® increased revenue by 77% to £1.5 million (FY24: £0.8 million), with total sales of approximately £2.5 million.

 

Around £1.0 million of contracted revenue has rolled into FY26, providing valuable visibility, particularly for the first half of the year. Counter^® continues to strengthen its routes to market, including through the G-Cloud framework and other established public‑sector procurement channels. This positions the Group to support both public and private sector clients with employer‑aligned digital delivery, consultancy and capability building. The diversification of revenue through Counter® is central to our long-term strategy. By increasing revenues in consultancy services and high-quality training to fuel this pipeline, we are building a more resilient Group, with less exposure to short-term policy shifts and funding cycles.

 

Operational discipline and restructuring

 

During the year, we implemented restructuring and efficiency initiatives projected to deliver approximately £2.1 million in annualised savings. These actions were taken swiftly to align the cost structure with current market conditions, while retaining essential delivery capability and protecting the student and client experience.

 

Our people

 

I would like to thank our employees for their professionalism, adaptability and commitment throughout a demanding year. They have responded to significant change with resilience and focus, maintaining high standards of delivery for both learners and corporate clients. Their dedication has been instrumental in preserving the Group's reputation and positioning us for the future.

 

Outlook and summary

 

FY26 has started well, and we have seen strong demand across both funded and private pathways, particularly in London, where application volumes continue to exceed available capacity. Counter^® has maintained positive momentum, with a healthy pipeline and continued conversion across both public and private sector clients. Initial delivery of our expanded data and AI offering has also been well received, reinforcing alignment with current employer demand. While it remains early in the year, with a simplified cost base, resilient gross margins, visible funding in key regions and a growing B2B pipeline, the Board believes Northcoders is well placed to grow sustainably as market conditions stabilise.

 

That said, external conditions in government‑funded skills programmes remain uncertain in the short term. Therefore, we will continue to adopt a cautious and disciplined approach, with a clear focus on cash management, margin protection and delivery quality. The UK's increasing emphasis on technology capability, particularly in AI and data, presents a significant long-term opportunity.

 

The Board would like to thank our shareholders for their continued support during a period of transition for both the Group and the wider sector. Their backing has enabled us to take decisive action, protect the core business and invest in areas of long-term growth. We remain committed to delivering sustainable value as the business continues to evolve.

 

 

Angela Williams

Non-Executive Chair

28 April 2026

 

 

 

Chief Executive Officer's review

 

Introduction

 

FY25 was a year defined by structural change across the UK skills landscape, yet it will be remembered for Northcoders' ability to respond to shifting market conditions. The Labour Government's decision to move from a national funding model to a fully regionalised structure, alongside revised allocation mechanisms, materially reduced funded learner volumes across the sector. Whilst Northcoders had already begun diversifying revenues, we accelerated plans in response as well as reducing the cost base to align with the new market conditions.

 

Our focus throughout the year has been clear: protect gross margin, preserve cash, maintain delivery quality and accelerate diversification, particularly through Counter^®, our B2B consultancy brand. While revenue fell year-on-year, the business has proven resilient. We have resized the cost base, strengthened the cash balance and positioned Northcoders to grow sustainably as our B2B business builds, regional funding beds in and market conditions stabilise.

 

Operational review

 

The confirmation that the DfE national Skills Bootcamp contract would not be extended beyond its initial 18-month term marked a significant inflection point and the shift to a regional funding model required rapid adaptation and a more selective, commercially disciplined approach to publicly funded delivery.

 

As a result, our approach to government funding has evolved and we will deploy funded bootcamps only where they strategically support Counter^® growth and long-term commercial returns. For example, we believe the opportunity in London is significant and we are focusing our efforts to further build Northcoders' presence in the capital. This disciplined alignment between B2C training and B2B consultancy strengthens our overall model, reduces reliance on volume-based funding and is proving successful.

 

During the year, Northcoders also underwent its first full Ofsted inspection and was awarded the highest possible rating of 'Outstanding' across all areas. This places us among the top tier of UK further education providers.

 

The report recognised our ambitious, industry-informed curriculum and exceptional learner support.

 

At a time of sector disruption, this external validation of quality is particularly significant. Diversifying revenue and expanding into AI are core priorities in FY25. A key step has been reducing dependency on government-funded delivery by launching a new 14-week AI and Machine Learning bootcamp, commencing in June 2025. Since its launch, we have graduated three cohorts who have gone on to secure employment in the Data & AI field. The curriculum integrates Data Engineering, Machine Learning, Cloud Technologies and the engineering principles underpinning AI language models. Demand for AI capability continues to grow rapidly across employers and this course positions Northcoders firmly within one of the most strategically important areas of UK technology skills development. Northcoders remains committed to demand‑led, high‑calibre, industry-aligned training. We continue to champion diversity within technology, ensuring access for individuals from non-traditional backgrounds while maintaining strong employment outcomes.

 

Counter^®: momentum and market opportunity

 

Counter^® has been a standout performer in FY25, with revenue up 77% year‑on‑year.

 

We secured repeat and extended engagements with key clients. These repeat contracts validate our differentiated model: deploying advanced engineers from our alumni and Tech Returners networks into embedded consultancy teams, with the option for clients to convert consultants into permanent hires. This model delivers immediate capability alongside long-term talent solutions. As we expand Counter^® geographically, particularly into London, we are investing in commercial leadership to support this next stage of growth. Our pricing model allows us to compete with nearshore and offshore alternatives while delivering higher‑quality, UK-based expertise.

 

The pipeline remains strong, with growing traction across public‑sector frameworks, including G-Cloud. Approximately £1.0 million of contracted Counter^® revenue has rolled into FY26, improving near‑term visibility.

 

Financial review

 

Financial discipline and focus on retaining a strong balance sheet in parallel with operational repositioning, ensuring the Group's financial foundations remain resilient.

 

We agreed a £1.5 million facility with NatWest on materially improved terms, refinancing the previous 11% APR growth loan with a facility priced at an average of 3% above the Bank of England base rate. These facilities are secured against the Group's internal IP and provide flexibility to scale as we diversify revenue streams.

 

Despite reduced funding volumes, our online‑first delivery model continues to focus on quality and scalability, with an emphasis on cost control. Headcount has been carefully aligned with revenue, with future growth expected to be weighted towards Counter^® as consultancy momentum continues.

 

During the year, we implemented restructuring and efficiency initiatives projected to deliver approximately £2.1 million in annualised savings relative to FY24. These actions ensure the cost base is aligned with current trading levels while retaining essential delivery capability. Revenue for the year stood at £4.9 million, down from £8.8 million in 2024. Despite the drop in revenue, the gross profit margin remained strong at 59%.

 

Adjusted EBITDA for the period was £(0.6) million and the loss before tax reported was £(2.9) million, due to a write-down of internal assets no longer retained following the change in the core business model. Basic EPS for the year was (-.37.80) pence and adjusted EPS was (-15.89) pence.

 

Outlook

 

FY25 was a year of reset and repositioning. We have moved from a predominantly volume-led, government-funded training model to a more balanced structure built on:

 

·   Regional funding aligned to strategic priorities

·   Growing privately funded B2C revenue

·   A scaling B2B consultancy division

·   Gross margin discipline

·   A significantly reduced cost base

 

While near-term visibility in government‑funded skills programmes remains subject to regional implementation timelines, we enter FY26 with improved clarity, contracted Counter^® revenue with an active pipeline, and a strong balance sheet.

 

The UK's long-term need for software engineering, data capability, AI expertise and secure digital infrastructure has not diminished. If anything, it has intensified. Northcoders remains committed to delivering exceptional training and employer‑aligned solutions across these critical disciplines.

 

FY25 required decisive leadership and difficult decisions. We acted swiftly and deliberately. As a result, Northcoders is leaner, more diversified and better positioned to build sustainable, profitable growth as market conditions stabilise.

 

Chris Hill

Founder and Chief Executive Officer

28 April 2026

 

 

The Directors have used adjusted EBITDA as an Alternative Performance Measure (APM) in the preparation of these financial statements. EBITDA represents earnings before interest, tax, depreciation and amortisation. The adjusted element removes non-recurring items which are not relevant to the underlying performance and cash generation of the business; in 2025 this comprised of share‑based payment expenses.

 

1)   This amount is not recognised on the balance sheet, as it relates to contracted income that has not yet been received.