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LONDON - Northcoders Group PLC (AIM:CODE), a prominent UK technology training provider, disclosed today that its Department for Education (DfE) contract, worth £10 million, will not be renewed beyond its initial 18-month term, which was first announced on January 16, 2024. The contract was instrumental in funding the company’s key bootcamp courses in Software (ETR:SOWGn) Engineering, Data Engineering, and Cloud Engineering.
The UK government is transitioning to a regional funding model for digital training, which includes critical AI and software skills. This new approach involves allocating ringfenced grants to mayoral combined authorities, the Greater London Authority, and select local authorities.
Despite this shift, Northcoders has engaged with regional stakeholders and is in advanced stages of negotiating bids for local funding. These developments are expected to influence the company’s revenue projections for the year. Northcoders is optimistic about securing regional funding and is diversifying its revenue sources, including growth within Counter, its proprietary learning platform.
Chris Hill, CEO of Northcoders, remains confident in the company’s strategy and its engagement with regional authorities. "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," Hill stated. The company’s focus is also on aligning its cost base with anticipated revenue.
This strategic shift comes as the technology sector continues to emphasize the importance of localized training and development to meet the specific needs of regions across the UK. Northcoders’ proactive engagement with various local stakeholders positions it to adapt to these changes and maintain its commitment to providing leading tech education.
The information for this report is based on a press release statement.
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