DfE contract and regional funding model

Northcoders (AIM:CODE), a market leader in technology training in the UK, announces that the Government has now confirmed that the Department for Education ('DfE') contract will not be extended beyond the initial 18-month period announced on 16 January 2024.

The DfE contract provided the Company with £10 million to train individuals on the Northcoders market-leading bootcamp for the Group's core B2C Software Engineering, Data Engineering and Cloud Engineering bootcamp courses.

The Government has now confirmed its intention to move to a fully regional funding model, whereby digital training in the UK, including the acutely needed AI and software skills, will be provided through a new and more tailored localised structure. The new regional contracts will be provided by ringfenced grants that the DfE allocates to mayoral combined authorities, the Greater London Authority ('GLA') and some local authorities.

Northcoders is already well-engaged with these stakeholders across the UK, and can confirm that it is in the latter stages of bids in a number of localities. The Company will update shareholders in due course on its progress with regional funding awards and how they will effect the Company's revenue for the year.

Confidence in winning regional funding, diversification of funding streams, growth within Counter, and continuing to strategically align costs to revenue, means the Company remains confident in meeting current market expectations.

Chris Hill, CEO of Northcoders, commented: "While the transition to a fully regional funding model presents a change to the landscape, we remain confident in the value of regional investment in digital skills. Northcoders is already well engaged with key stakeholders across the UK and we are actively progressing bids in several regions. At the same time, we continue to focus on diversifying our revenue streams and will ensure our cost base is aligned with future income."