Northcoders Group PLC (CODE) AI Stock Analysis

• Market Cap: £2.68M
• Dividend Yield: N/A
• Average Volume (3M): 17.76K
• Price to Earnings (P/E): 6.9
• Beta (1Y): -0.69
• Revenue Growth: 24.17%
• EPS Growth: N/A
• Country: UK
• Employees: 129
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 0.04
• Shares Outstanding: 8,011,469
• 10 Day Avg. Volume: 8,174
• 30 Day Avg. Volume: 17,762
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £41.00
• Price Target Upside: 22.39% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: 36.00p ▲(7.46% Upside)

The overall stock score is driven by strong financial performance and attractive valuation. However, technical indicators suggest a bearish trend, which weighs down the score. The lack of earnings call data and corporate events limits additional insights.

Northcoders Group PLC Business Overview & Revenue Model

Company Description

Northcoders Group PLC provides various training programs for software coding to individual, government, and corporate customers in the United Kingdom. The company provides bootcamp training courses, government-funded apprenticeships, and bespoke training courses. It offers its courses through classroom and online teaching. Northcoders Group PLC was incorporated in 2021 and is headquartered in Manchester, the United Kingdom.

How the Company Makes Money

Northcoders Group PLC generates revenue through a variety of streams primarily centered around its educational offerings. The company makes money by charging tuition fees for its intensive coding bootcamp programs, which are designed to provide participants with the necessary skills to enter the technology sector as software developers. Additionally, Northcoders offers apprenticeship programs in partnership with businesses seeking to upskill their workforce, which provides another revenue stream through government funding and fees charged to partner companies. Corporate training services also contribute to the company's income, as Northcoders delivers tailored training solutions to organizations looking to enhance their employees' technical skills. These diverse educational products and strategic partnerships with businesses and government bodies form the backbone of Northcoders Group PLC's revenue model.

Northcoders Group PLC Financial Statement Overview

Summary

Northcoders Group PLC shows significant financial improvement, with strong revenue growth and profitability. The company has a solid balance sheet with low leverage, but cash flow management needs attention to support long-term growth.

Income Statement

The company exhibited strong revenue growth of 24.1% in the latest annual period, showcasing robust expansion. Gross profit and net income margins improved significantly, indicating enhanced operational efficiency and profitability. The EBIT and EBITDA margins turned positive, reflecting a successful turnaround from previous losses.

Balance Sheet

The balance sheet is solid with a debt-to-equity ratio of 0.12, indicating low leverage and financial stability. The equity ratio of 76.0% signifies a strong equity position. However, the decline in cash and cash equivalents suggests a need for more efficient cash management.

Cash Flow

Free cash flow turned positive, indicating improved liquidity and cash generation. The operating cash flow to net income ratio is robust, reflecting efficient conversion of earnings into cash. However, a consistent negative investing cash flow could indicate potential future liquidity constraints.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.82M	7.10M	5.60M	3.01M	1.34M
Gross Profit	5.50M	4.44M	3.94M	2.16M	892.17K
EBITDA	872.27K	-681.08K	715.79K	-167.58K	-843.64K
Net Income	388.86K	-1.01M	359.54K	-358.12K	-938.34K
Balance Sheet
Total Assets	6.99M	7.26M	7.34M	4.40M	1.80M
Cash, Cash Equivalents and Short-Term Investments	1.19M	1.62M	2.78M	1.56M	525.67K
Total Debt	622.56K	1.13M	1.79M	1.62M	1.62M
Total Liabilities	1.67M	2.45M	2.69M	2.25M	2.34M
Stockholders Equity	5.31M	4.82M	4.64M	2.15M	-538.27K
Cash Flow
Free Cash Flow	890.51K	-186.07K	-770.15K	-1.40M	-645.40K
Operating Cash Flow	928.92K	651.44K	-245.03K	-1.09M	-464.30K
Investing Cash Flow	-849.04K	-1.01M	-515.36K	-302.67K	-196.51K
Financing Cash Flow	-511.27K	-814.78K	1.97M	2.43M	765.28K

Northcoders Group PLC Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 33.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CODE, the sentiment is Negative. The current price of 33.5 is below the 20-day moving average (MA) of 34.50, below the 50-day MA of 35.82, and below the 200-day MA of 91.09, indicating a bearish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 37.64 is Neutral, neither overbought nor oversold. The STOCH value of 45.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:CODE.

Northcoders Group PLC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CODE	67 Neutral	£2.68M	6.91	7.68%	―	24.17%	―
MLVN	46 Neutral	4.03M	-26.61	3.87%	―	35.69%	4.62%
TIDE	46 Neutral	4.11M	-48.45	-15.78%	―	0.00%	0.00%
AIQ	41 Neutral	3.89M	-14.29	0.00%	―	46.82%	48.15%
CLCO	41 Neutral	1.59M	-0.75	150.72%	―	0.00%	0.00%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Northcoders Group PLC Corporate Events

Northcoders Secures Major Contract with Global Software Provider

Northcoders Group PLC announced that its consultancy brand, Counter®, has secured a significant 12-month contract with a global business management software provider, valued at over £500,000. This contract underscores Northcoders’ ability to attract major clients and highlights the increasing demand for its services in the technology and service sectors, reinforcing the company’s growth prospects.

The most recent analyst rating on (GB:CODE) stock is a Hold with a £40.00 price target. To see the full list of analyst forecasts on Northcoders Group PLC stock, see the GB:CODE Stock Forecast page.

Northcoders Group PLC Reports Improved Profitability Amidst Funding Challenges

Northcoders Group PLC reported a trading update for the first half of 2025, highlighting improved profitability despite a challenging operating environment and slower government funding. The company achieved a gross profit margin increase and maintained a solid cash balance, allowing for strategic investments. While government funding delays impacted training bootcamp applications, privately funded places increased, and the company launched a new Data and AI course. The COUNTER® division showed steady progress with new contracts and strengthened sales, contributing to the company’s diversification strategy. Northcoders remains cautious but optimistic about future growth, focusing on revenue diversification, AI development, and cost control.

Northcoders Group PLC Reports Resilient H1-2025 Amid Funding Challenges

Northcoders Group PLC reported a challenging first half of 2025, with revenues declining due to slower government funding access. Despite this, the company improved its profitability and maintained a strong cash position through cost control and revenue diversification. The launch of a new Data and AI course and the growth of its COUNTER® consultancy brand are key strategic moves. The company remains focused on diversifying revenue streams and maintaining operational efficiency to adapt to market conditions and funding uncertainties.

Northcoders Group PLC Updates on Government Funding and Trading

Northcoders Group PLC announced a government funding and trading update, highlighting a transition to a regional funding model for Skills Bootcamp programmes. Despite delays in funding awards from regional authorities, the company remains optimistic about long-term funding due to its strong market reputation and demand for its graduates. However, the uncertainty affects revenue and profitability predictions for the year. The company is actively reducing costs and investing in growth areas like AI training and its B2B Counter consultancy division, while maintaining a positive cash position supported by a £10 million contract with the Department for Education.

Northcoders Achieves Top OFSTED Rating, Strengthening Market Position

Northcoders Group PLC has received an ‘Outstanding’ rating from OFSTED in all assessed areas, placing it in the top 6% of UK further education providers. This recognition enhances Northcoders’ credibility and strengthens its position in securing government and regional funding, highlighting its commitment to delivering high-quality digital skills training.