Northcoders unable to accurately predict timing of income from Government-backed contracts

(Sharecast News) - Technology training firm Northcoders warned on Thursday that it cannot accurately predict the timing of income from Government-backed contracts and expects both revenue and profitability to be "unpredictable" for the remainder of the current year. Northcoders said it was unable to support current market expectations as many regional authorities that were anticipated to have made funding awards by this time have not done so, with multiple bids remaining pending as several regional authorities have yet to issue tenders or confirm exact future funding allocations.

Positively, Northcoders said it has continued to receive updates suggesting delays, rather than cancellations, and stated that it has already taken "decisive steps" to control costs where possible.

"However, until greater clarity emerges, we cannot accurately predict the timing of income from Government-backed contracts. As a result, the group expects revenue and profitability to be unpredictable for the remainder of the current year and we are therefore unable, with confidence, to support current market expectations," said Norhcoders.

"The group's existing £10.0m contract with the DfE, which concludes later this year, continues to provide a solid foundation for the group and helps offset some of the near-term headwinds, generating cash for many months ahead."

As of 0900 BST, Northcoders shares had sunk 26.0% to 37.0p.



Reporting by Iain Gilbert at Sharecast.com