Northcoders Group (CODE) H1 2025 earnings summary

Executive summary

• H1 revenue was £3.671m versus £4.354m; adjusted EBITDA was £405,187 and gross margin 67%, with overheads down 20% to £2.1m.

• Strategy shifted B2C training toward Counter consultancy, reducing exposure to unpredictable public funding and using bootcamps to support the consultant pipeline.

Financial highlights

• Operating profit was £104,200 versus £154,716; profit after tax was £70,761 versus £108,407.

• Operating activities generated £383,602; investing activities used £70,000.

Outlook and guidance

• H2 2025 is expected to be weaker than H1, with regional funding delays affecting revenue and non-recurring costs expected.

• Further overhead reductions are expected in FY 2025 and 2026, with a return to profitability forecast for 2026.

• The 2025 focus is preparing operations and the balance sheet for FY 2026 growth while protecting profitability; no capital raise is planned at this stage.

• A 14-week Data Engineering, AI and Machine Learning curriculum launched with 100% private funding.