19th Sep 2023 12:46
(Alliance News) - Northcoders Group PLC shares dropped on Tuesday, after it reported that it swung to a loss in the first half of 2023 amid an uncertain outlook.
Shares in Northcoders were down 31% to 132.70 pence each in London on Tuesday afternoon.
The Manchester-based software coding training provider said revenue in the first half of 2023 rose 46% to GBP3.5 million from GBP2.4 million a year earlier. Consumer revenue, which includes core bootcamps and apprenticeship revenues, jumped 62% to GBP2.8 million year-on-year.
However, it swung to a pretax loss of GBP306,908, from a profit of GBP118,176.
Cost of sales rose to GBP1.3 million from GBP710,651, whilst administrative expenditure climbed to GBP2.4 million from GBP1.5 million.
Looking ahead, Northcoders said 2023 results are expected to be second half weighted. However, the outturn is uncertain due to the prevailing headwinds encountered by the technology market.
"As outlined at the trading update in July, the market continues to be challenging, with budget constraints, workforce reductions, and recruitment freezes affecting the Business Solutions division, which means our growth in the short term is expected to be slower than previously expected," Chief Executive Officer Chris Hill said.
"Nonetheless, Northcoders remains a key enabler of growth and innovation and we are resolute in our pursuit of evolving to meet technology's ever-changing demands, confidently providing sustainable long-term growth for all our stakeholders."
It added that one unnamed client is "undergoing a substantial business reorganisation leading to a division closure."
By Sophie Rose, Alliance News reporter
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