Technology training provider Northcoders expects revenues to fall by £700,000 for the first half of 2025, compared to the same period of time in 2024.
The Manchester-based firm anticipated that turnover for H1 2025 will be £3.7m – a drop from the £4.4m it was in H1 2025.
Despite this, the group has delivered improved profitability, with its gross profit margin expected to increase to 70% (H1-2024: 67%), driven by enhanced delivery efficiency and cost control.
Adjusted EBITDA is again anticipated to be around £400,000.
A big reason for the falling revenue is the drop-off in applicants for the company’s training bootcamps.
Applications stood at 2,608 – a stark decline from 6,766 in the first half of 2024 – with the business blaming a change in government funding structure for this.
Privately funded places, however, increased 30% to 43 and the company was awarded an OUTSTANDING rating in its recent OFSTED inspection.
It has also secured seven new contracts in this period through its challenger corporate consultancy brand COUNTER.
Regarding the results, a group statement said that the firm ‘remains cautious due to the uneven regional funding landscape’.
It is now focused on revenue diversification, accelerated development activity into areas of AI, cash conservation and cost control.
“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,” said Chris Hill, CEO of Northcoders.
“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.”