Northcoders Group PLC (AIM:CODE) shares fell 20% on Thursday after the UK coding and digital skills provider warned that delays to regional Government funding would hit revenue visibility and leave it unable to support current market expectations.
The company said a shift to regionally managed funding for Skills Bootcamps had left several local authorities yet to publish tenders or confirm allocations.
While Northcoders said it continues to receive updates suggesting delays rather than cancellations, it acknowledged that income from Government-backed contracts is now difficult to forecast.
To manage uncertainty, the company has cut annualised fixed costs by £3.25 million — a 40% reduction on 2024 levels — while continuing to invest in AI, data engineering, and corporate training.
Northcoders ended the period with £2.25 million in cash and highlighted ongoing income from a £10 million contract with the Department for Education, which runs through to the end of the year.
The stock fell 10.1p to 39.9p.