By Elena Vardon
Northcoders Group, a London-listed provider of training software, experienced a significant decrease in share value on Tuesday after announcing that it expects its revenue and profit for 2023 to be well below market expectations. This news followed the company's report of a swing to a pretax loss during the first half of the year due to higher costs.
At 0821 GMT, Northcoders Group shares had fallen by 65 pence, or 34%, reaching 127.5 pence.
The company did not disclose specific market expectations. However, its revenue for 2022 was reported at £5.6 million ($6.9 million), with a pretax profit of GBP346,429.
"While it was previously anticipated that FY23 would be a second half-weighted year, the uncertain outcome is a result of the challenges faced by the technology market," said Northcoders Group. The company also stated that its outlook has been negatively affected by one client's lower-than-expected demand for its services.
For the six months ending on June 30, Northcoders Group posted a pretax loss of £306,908 compared to a pretax profit of £118,176 during the same period the previous year. The increase in revenue for the half-year to £3.5 million from £2.4 million was attributed to strong demand for its consumer bootcamp training.
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