Northcoders Group (CODE) H1 2024 earnings summary

Executive summary

• H1 revenue rose 26% to £4.35m; adjusted EBITDA reached £447.9k and the period returned to profitability.

• Growth was supported by record bootcamp registrations and NCore efficiencies; Counter pilot contracts advanced revenue diversification.

Financial highlights

• Revenue was £4.35m versus £3.45m in H1 2023; gross profit increased to £2.91m from £2.18m.

• Gross margin rose to 67% from 62%, supported by efficiencies from the teaching model and NCore platform.

• Adjusted EBITDA was £447.9k versus £39.4k; operating profit was £154.7k versus an operating loss of £222.3k.

• Net profit after tax was £108.4k versus a £250.9k loss; adjusted EPS was 2.58p versus a loss of 2.07p.

Outlook and guidance

• H2 trading started slightly ahead of management expectations; FY 2024 revenue and profits are expected in line with market expectations.

• FY profits are expected to be H2 weighted; priorities include new technology disciplines, Counter expansion, brand awareness and NCore efficiencies.

• Counter’s FY 2025 pipeline is strong, with more material revenue anticipated in the medium term.