The Northcoders Group PLC (LON: CODE) share price plunged 40.5% after releasing its interim results for the six months to 30 June 2023 (H1 2023). The company revealed that its revenues grew to £3.5 million during the period, marking a 46% increase from the H1 2022 revenue of £2.4 million.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
The company also experienced significant demand for its consumer boot camp training, which generated revenues worth £2.8 million in H1 2023, compared to £1.7 million in H1 2022. The company’s geographic expansion and entry into new disciplines drove the higher boot camp revenues.
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YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
Northcoders reported an underlying adjusted pre-tax profit of £0.04 million, a slight decline from the £0.42 million recorded in H1 2022. The weak profits recorded by the company triggered an adverse reaction from investors, given its upbeat revenues and gross profits.
The company attributed its weaker profits to the acquisitions of Tech Returners and its investments in Business Solutions. The company’s loss after tax remained stable at £0.2 million, delivering adjusted EPS of (2.07) pence compared to (4.59 pence) in H1 2022.
Northcoders warned investors that despite all the momentum it has achieved in H1 2023, the current financial year presents several market challenges for the Group’s Business Solutions division.
Many clients have delayed their commitments to Northcoders’ Academy, Your Return to Tech and Consultancy services. The uncertainty about the future was the primary reason Northcoders’ shares fell heavily earlier today.
Some of Northcoders’ operational highlights included significant growth in demand with record Consumer Training Bootcamp course applications, more than doubling to 7,107 in H1 2023 from 3,494 in H1 2022. The firm’s Q3 applications have risen to over 10,000 amid increasing demand.
Chris Hill, the CEO of Northcoders, said: “Our performance to date reaffirms our commitment to addressing the UK's digital skills gap as a leading technology training provider. H1 2023 saw the Group's revenue increase to £3.5 million, a 46% increase compared to the same period last year, driven by high demand for consumer boot camp training, generating £2.8 million in revenue, up 65% on H1 2022 performance.”
Northcoders (CODE) share price.
The Northcoders (CODE) share price plunged 40.52% to trade at 114.50p, from Monday’s closing price of 192.50p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.