Northcoders H1 revenue falls; restructuring complete, H2 revenue and EBITDA seen improving
UK tech training and consultancy firm Northcoders said H1 revenue fell and it recorded an adjusted EBITDA loss, with restructuring largely complete and H2 revenue and EBITDA expected to improve on higher contracted B2B sales; gross margin fell to 55% from 67%.
Northcoders said first-half revenue fell sharply as government-funded training declined, while revenue lagged operating costs and the company posted an adjusted EBITDA loss for the period. The company said restructuring is largely complete and expects second-half revenue and EBITDA to improve on higher contracted B2B sales. It also expects second-half revenue to be materially ahead of the first half, with the adjusted EBITDA loss materially reduced and Q4 EBITDA positive. Northcoders said its AI launch is expected to support growth and help strengthen the business development pipeline.
The company said the revenue mix shifted from government-funded training toward B2B corporate customers, with corporate revenues expected to ramp up in the second half. Gross margin fell to 55% from 67% as corporate project work, which typically yields lower margins, became a larger part of revenue. Northcoders said restructuring is substantially complete, leaving it with a lower fixed cost base and a more flexible operating model. 40 mln, while adjusted EBITDA was GBP 500,000.
00% and gross profit came in at GBP 700,000. The Reuters automation story also referred readers to Sept 29 coverage of UK's Ebiquity H1 revenue falling on legacy client losses, Sept 29 coverage of UK's Billington Holdings H1 profit jumping 70% on data centre demand, and Sept 28 coverage of whether the UK can forge a new era of reindustrialisation?