Q2 2026 Northcoders Group PLC Earnings Call
Speaker #2: Thank you.
Speaker #3: The presentation. Questions are encouraged. They can be submitted at any time via the Q&A tab, which is situated on the right-hand corner of your screen.
Operator: The presentation. Questions are encouraged. They can be submitted at any time via the Q&A tab that is just situated on the right-hand corner of your screen. Please just simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today and will publish those responses where it is appropriate to do so. Before we begin, we would just like to submit the following poll, and if you could give that your kind attention, I am sure the company would be most grateful. I would now like to hand you over to CEO, Chris Hill. Chris, good afternoon, sir.
Operator: The presentation. Questions are encouraged. They can be submitted at any time via the Q&A tab that is just situated on the right-hand corner of your screen. Please just simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today and will publish those responses where it is appropriate to do so. Before we begin, we would just like to submit the following poll, and if you could give that your kind attention, I am sure the company would be most grateful.
Speaker #3: Please just simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself; however, the company can review all questions submitted today and will publish those responses where it's appropriate to do so.
Speaker #3: Before we begin, we would just like to submit the following poll. If you could give that your kind attention, I'm sure the company would be most grateful.
Speaker #3: And I would now like to hand you over to CEO Chris Hill. Chris, good afternoon, sir.
Operator: I would now like to hand you over to CEO, Chris Hill. Chris, good afternoon, sir.
Speaker #4: Hi, good afternoon. Thank you, everyone. For joining me for this presentation, I'll move straight on to the displaying the numbers for the results announced today.
Chris Hill: Hi, good afternoon, and thank you everyone for joining me for this presentation. I will move straight on to displaying the numbers for the results announced today. 1.4 million of revenue in the H1 of the year with a 0.5 million EBITDA loss. Obviously, it was a difficult H1 to the year. We have been over a significant restructuring period and of course, it probably goes without saying that the business is smaller than we would have wanted, and we understand that the losses sustained over the restructuring period have been fairly significant, and we would like to have gone faster. What the good news is that we do now have a clear near-term route to well, firstly, to break even, which is now, and then through to profitability.
Chris Hill: Hi, good afternoon, and thank you everyone for joining me for this presentation. I will move straight on to displaying the numbers for the results announced today. 1.4 million of revenue in the H1 of the year with a 0.5 million EBITDA loss. Obviously, it was a difficult H1 to the year. We have been over a significant restructuring period and of course, it probably goes without saying that the business is smaller than we would have wanted, and we understand that the losses sustained over the restructuring period have been fairly significant, and we would like to have gone faster.
Speaker #4: So 1.4 million of revenue in the first half of the year with a 0.5 million EBITDA loss. Obviously, it was a difficult first half to the year.
Speaker #4: We've been over a significant restructuring period, and of course, it probably goes without saying that the business is smaller than we would have wanted, and we understand that the losses sustained over the restructuring period have been fairly significant, and we would like to have gone faster but what the good news is is that we do now have a clear near-term route to, well, firstly to break even, which is now, and then through to profitability.
Chris Hill: What the good news is that we do now have a clear near-term route to well, firstly, to break even, which is now, and then through to profitability.
Chris Hill: In terms of things like that, our revenue for the H2 of the year is substantially ahead. That recognized in the H1 and the overheads were around GBP 1.25 million for the H1, but around about GBP 1 million for the H2. The one thing as well I am keen to point out on here is in terms of the gross margin. The gross margin is obviously lower than previously, and that is more to do with we now have a business model where we directly link revenue to the cost of sales. We do not have a lot of sunken costs that sit in the gross profit line. So whilst the margins are lower, the overhead cost is lower also. Let us go over for anyone who is new to the presentation. Thank you for joining us.
Chris Hill: In terms of things like that, our revenue for the H2 of the year is substantially ahead. That recognized in the H1 and the overheads were around GBP 1.25 million for the H1, but around about GBP 1 million for the H2. The one thing as well I am keen to point out on here is in terms of the gross margin. The gross margin is obviously lower than previously, and that is more to do with we now have a business model where we directly link revenue to the cost of sales. We do not have a lot of sunken costs that sit in the gross profit line. So whilst the margins are lower, the overhead cost is lower also. Let us go over for anyone who is new to the presentation. Thank you for joining us.
Speaker #4: In terms of things like that, our revenue for the second half of the year is substantially ahead of that recognized in the first half, and the overheads were around £1.25 million.
Speaker #4: For the first half, around about a million for the second half. The one thing as well to sort of, I'm keen to point out on here is in terms of the gross margin, the gross margin is obviously lower than previously, and that is more to do with we now have a business model where we directly link revenue to the cost of sales.
Speaker #4: We don't have a lot of sunken costs that sit in the gross profit line. So whilst it's whilst the margins are lower, the overhead cost is lower also.
Speaker #3: Let's go over, for anyone who's new to the presentation—thank you for joining us. I'll briefly go over the history and the evolution of the business, really.
Chris Hill: I will go briefly over the history and the evolution of the business really. We pioneered the UK coding bootcamp model with an employer-led approach to solving the tech skills gap. We trained over 4,000 people, worked with a range of hiring partners, and we have been going now for 10 years, and we have been well accredited along the way. I am sure it is kind of the news now is that we went through a period where we were doing significant training numbers through a government framework which came to an immediate halt. Since then we have restructured the business. Completely removed a lot of costs, and we are now very, very focused on B2B services, and we pick up some small. We will go into the revenue mix later. We pick up some small amounts of government-funded work, and still some B2C as well. So what has changed over that time?
Chris Hill: I will go briefly over the history and the evolution of the business really. We pioneered the UK coding bootcamp model with an employer-led approach to solving the tech skills gap. We trained over 4,000 people, worked with a range of hiring partners, and we have been going now for 10 years, and we have been well accredited along the way. I am sure it is kind of the news now is that we went through a period where we were doing significant training numbers through a government framework which came to an immediate halt. Since then we have restructured the business. Completely removed a lot of costs, and we are now very, very focused on B2B services, and we pick up some small. We will go into the revenue mix later. We pick up some small amounts of government-funded work, and still some B2C as well. So what has changed over that time?
Speaker #3: We pioneered the UK coding bootcamp model with an employer-led approach to solving the tech skills gap. We trained over 4,000 people and worked with more than 800 hiring partners.
Speaker #3: When we've been going now for 10 years and we've been well accredited, along the way, I'm sure it's kind of the news now that we went through a period where we were doing significant training numbers through a government framework, which came to an immediate halt.
Speaker #3: And since then, yeah, we've restructured the business completely, removed a lot of costs, and we're now very, very focused on B2B services. And we pick up some smaller, go into the revenue mix later.
Speaker #3: We pick up some small amounts of government-funded work and still some B2C as well. So, what's changed over that time? We have had a substantial restructure, which has not only been expensive, but has also taken a lot of management's time and focus.
Chris Hill: We have had a substantial restructure, which has not only been expensive, but has also been taking a lot of management's time and focus, but we are now through doing all of that restructuring. Our capability has completely changed, and we now have a very, very, very small amount of discretionary spending. We have really got the overheads as low as we possibly can, and again, directly linked the actual cost of sale, which is mostly people, to the revenue. So we recruit people directly when we win a new contract, as opposed to having a bank of people ready to capitalize on opportunities. But within that, we do still have flexibility and the ability to act fast through a network of subcontracts, especially in the training space where opportunities come along that we want to be able to deliver quickly.
Chris Hill: We have had a substantial restructure, which has not only been expensive, but has also been taking a lot of management's time and focus, but we are now through doing all of that restructuring. Our capability has completely changed, and we now have a very, very, very small amount of discretionary spending. We have really got the overheads as low as we possibly can, and again, directly linked the actual cost of sale, which is mostly people, to the revenue. So we recruit people directly when we win a new contract, as opposed to having a bank of people ready to capitalize on opportunities. But within that, we do still have flexibility and the ability to act fast through a network of subcontracts, especially in the training space where opportunities come along that we want to be able to deliver quickly.
Speaker #3: But we are now, through doing all of that, restructuring. Our capability has completely changed, and we now have a very, very, very small amount of discretionary spending.
Speaker #3: We have really got the overheads as low as we possibly can. And again, we have directly linked the actual cost of sale, which is mostly people, to the revenue.
Speaker #3: So, we recruit people directly when we win a new contract, as opposed to having a bank of people ready to capitalize on opportunities. But within that, we do still have flexibility and the ability to act fast through a network of subcontractors, especially in the training space where opportunities come along that we want to be able to deliver quickly.
Speaker #3: So the main focus now of the business is we do training for mostly for B2B. We are still working with Greater London Authority on some skills bootcamps, but we haven't been doing any major bidding through some of the other combined authorities.
Chris Hill: The main focus now of the business is we do training mostly for B2B. We are still working with Greater London Authority on some skills bootcamps, but we have not been doing any major bidding through some of the other combined authorities. It just was not really a very high amount of revenue that was available through chasing that route. But still against the operating principles, there is still quite a lot of permanent overhead required to operate in that way. Then our main route to market for B2B is through COUNTER. Which is, we will talk more about the revenue and what that is shaping up, by embedding engineering teams into organizations, and it works on a kind of a hire, train, and deploy model.
Chris Hill: The main focus now of the business is we do training mostly for B2B. We are still working with Greater London Authority on some skills bootcamps, but we have not been doing any major bidding through some of the other combined authorities. It just was not really a very high amount of revenue that was available through chasing that route. But still against the operating principles, there is still quite a lot of permanent overhead required to operate in that way. Then our main route to market for B2B is through COUNTER. Which is, we will talk more about the revenue and what that is shaping up, by embedding engineering teams into organizations, and it works on a kind of a hire, train, and deploy model.
Speaker #3: It just wasn't really a very high amount of revenue that was available through chasing that route, but it was still, against the operating principles, quite a lot of permanent overhead required to operate in that way.
Speaker #3: And then our main route to market for B2B is through Counter. We'll talk more about the revenue and what that's shaping up by embedding engineering teams into organizations.
Speaker #3: And it works on a kind of a higher train and deploy model. And also based on fully-scoped projects, but the difference for the client is that the individuals who have come through the higher train deploy model is they're able to become a long-term employee at the end of the contract.
Chris Hill: And also based on fully scoped projects, but the difference for the client is that the individuals who come through the Hire, Train and Deploy model, if they are able to become a long-term employee at the end of the contract. We will talk about the revenue mix. Now, obviously, this is not comparing apples with apples. We know that the amount of the level of revenue has come down a lot over this time. But we are now pleased to say that the revenue is back to growing from this point forward. But way back in 2024, literally 90% of our business was B2B clients, and almost all of it was government-funded. We were aware of this at the time, before the contract was almost sort of taken away from us.
Chris Hill: And also based on fully scoped projects, but the difference for the client is that the individuals who come through the Hire, Train and Deploy model, if they are able to become a long-term employee at the end of the contract. We will talk about the revenue mix. Now, obviously, this is not comparing apples with apples. We know that the amount of the level of revenue has come down a lot over this time. But we are now pleased to say that the revenue is back to growing from this point forward. But way back in 2024, literally 90% of our business was B2B clients, and almost all of it was government-funded. We were aware of this at the time, before the contract was almost sort of taken away from us.
Speaker #3: So, we'll talk about the revenue mix. Now, obviously, this isn't comparing apples with apples. We know that the level of revenue has come down a lot over this time, but we are now pleased to say that the revenue is back to growing from this point forward.
Speaker #3: But way back in 2024, about 9% of our business was B2B clients, and almost all of it was government-funded. So we were aware of this at the time, before the contract was almost sort of taken away from us.
Speaker #3: And the pivot towards growing Counter was something that we were already working on and had launched and growing the B2B side of it. Obviously, in an ideal world, we'd have kept the training underpinned by the government contract.
Chris Hill: The pivot towards growing COUNTER was something that we were already working on and had launched and growing the B2B side of it. Obviously, in an ideal world, we would have kept the training underpinned by the government contract, so we were able to grow COUNTER on top of that. Whereas instead, with the change in government and the framework almost disappearing overnight, you can see that change flow through from 2025, and then into the kind of expected outturn for 2026. The total cost savings at the full-year results was around about GBP 2 million, but there has been further annualized savings made within the business, and that has now all come to an end in terms of one-off costs, restructuring, and things like that. We now have all of those type matters are now behind us.
Chris Hill: The pivot towards growing COUNTER was something that we were already working on and had launched and growing the B2B side of it. Obviously, in an ideal world, we would have kept the training underpinned by the government contract, so we were able to grow COUNTER on top of that. Whereas instead, with the change in government and the framework almost disappearing overnight, you can see that change flow through from 2025, and then into the kind of expected outturn for 2026. The total cost savings at the full-year results was around about GBP 2 million, but there has been further annualized savings made within the business, and that has now all come to an end in terms of one-off costs, restructuring, and things like that. We now have all of those type matters are now behind us.
Speaker #3: So we were able to grow Counter on top of that. Whereas instead, with the change in government and the framework, almost disappearing overnight, you can see that change flow through from 2025.
Speaker #3: And then, into the kind of expected outturn for 2026. The total cost savings at the full-year results was around £2 million, but there have been further annualized savings made within the business.
Speaker #3: And that has now all come to an end in terms of one-off costs, restructuring, and things like that. And we now have a all of that type of those type of matters are now behind us.
Speaker #3: So in April, we had one and a half the full year results. We had one and a half million. In terms of one of the benefits of the Counter model is that our contracts are often relatively lengthy, around about 12 months.
Chris Hill: In April, we had the full year results, we had GBP 1.5 million. In terms of one of the benefits of the COUNTER model is that our contracts are often relatively lengthy, they are around about 12 months. There are some organizations that when it comes to kind of public sector and critical infrastructure, which is one of the areas that we are really strong in, we only get purchase orders for short amounts of time due to the nature of the security clearance required for those type of contracts. So they are kind of renewed quarterly rather than being. But they are really sticky. They are really good clients we are working with, and they are certainly growing.
Chris Hill: In April, we had the full year results, we had GBP 1.5 million. In terms of one of the benefits of the COUNTER model is that our contracts are often relatively lengthy, they are around about 12 months. There are some organizations that when it comes to kind of public sector and critical infrastructure, which is one of the areas that we are really strong in, we only get purchase orders for short amounts of time due to the nature of the security clearance required for those type of contracts. So they are kind of renewed quarterly rather than being. But they are really sticky. They are really good clients we are working with, and they are certainly growing.
Speaker #3: There are some organizations that, when it comes to kind of, sort of, public sector and critical infrastructure—which is one of the areas that we are really strong in—we only get purchase orders for short amounts of time due to the nature of the security clearance required for those types of contracts.
Speaker #3: So they are kind of renewed quarterly rather than being but they are really sticky. They're really good clients to be working with. And they're certainly growing.
Speaker #3: So we've got 2.4 million through Counter for the full year, of which 0.9 of that was the first half of the year, but up to 1.5 in the second half, which is fully contracted.
Chris Hill: We have GBP 2.4 million through COUNTER for the full year, of which 0.9 of that was the H1, but up to GBP 1.5 million in the H2, which is fully contracted and obviously cash generative month to month. Furthermore, we do have a near-term opportunity pipeline with both new clients and current clients, around about GBP 3 million, and that is kind of the pipeline. We obviously have further business development and activity outside of this, but that is what we are considering of the real near-term opportunities that could turn into contracted revenue very, very soon. We have the same actually in training also. We do actually have some graduate academies running again this year, which is good to see that come back, and hopefully there will be more of a trend for all sorts of reasons.
Chris Hill: We have GBP 2.4 million through COUNTER for the full year, of which 0.9 of that was the H1, but up to GBP 1.5 million in the H2, which is fully contracted and obviously cash generative month to month. Furthermore, we do have a near-term opportunity pipeline with both new clients and current clients, around about GBP 3 million, and that is kind of the pipeline. We obviously have further business development and activity outside of this, but that is what we are considering of the real near-term opportunities that could turn into contracted revenue very, very soon. We have the same actually in training also. We do actually have some graduate academies running again this year, which is good to see that come back, and hopefully there will be more of a trend for all sorts of reasons.
Speaker #3: And obviously, cash generative month to month. Furthermore, we do have a near-term opportunity pipeline with both new clients and current clients around about 3 million.
Speaker #3: And that is kind of the pipeline we obviously have for the business development and activity outside of this. But that is what we're considering—these are the real near-term opportunities that could turn into contracted revenue very, very soon.
Speaker #3: We have the same actually in training also. We do actually have some graduate academies running again this year, which is good to see that come back.
Speaker #3: And hopefully, there will be more of a trend for all sorts of reasons just specifically for us to your kind of KPMGs and so on, getting back to doing more graduate recruitment and working with Northcoders to do that and give them the skills that they need.
Chris Hill: Just specifically for us to your KPMGs and so on, getting back to doing more graduate recruitment and working with Northcoders to do that and give them the skills that they need for their roles. One of the new things that we have launched at Northcoders.ai. We call this the Northcoders AI Foundry, and this is bringing together a lot more of the technical aspects required. While everyone has heard a lot about AI within engineering, there has certainly been a lot of movement towards rather than having teams made up of individual engineers with different skill sets such as testing, coding, data engineering, and so on. Deploying agents to write that code for you has been something that has been significant growth in that area, and the main driver for businesses is being able to ship things faster.
Chris Hill: Just specifically for us to your KPMGs and so on, getting back to doing more graduate recruitment and working with Northcoders to do that and give them the skills that they need for their roles. One of the new things that we have launched at Northcoders.ai. We call this the Northcoders AI Foundry, and this is bringing together a lot more of the technical aspects required. While everyone has heard a lot about AI within engineering, there has certainly been a lot of movement towards rather than having teams made up of individual engineers with different skill sets such as testing, coding, data engineering, and so on. Deploying agents to write that code for you has been something that has been significant growth in that area, and the main driver for businesses is being able to ship things faster.
Speaker #3: For their roles. So one of the new things that we have launched is Northcoders. Northcoders AI. So we call this the Northcoders AI Foundry.
Speaker #3: And this is bringing together a lot more of the kind of technical aspects required while everyone's heard a lot about AI within engineering. There's certainly been a lot of movement towards rather than having teams made up of individual engineers with different skill sets, such as testing, coding, data engineering, and so on.
Speaker #3: Deploying agents to kind of write that code for you has been something that's been significant growth in that area. And the main driver for businesses is being able to ship things faster.
Speaker #3: But obviously, it hasn't come without its problems. There's definitely been cultural change problems for organizations, and there have definitely been a lot more quality assurance issues. Certainly, one thing that we're very considerate of is the cybersecurity elements, and breaches have become more common.
Chris Hill: But obviously it has not come without its problems. There has definitely been cultural change problems for organizations, and there has definitely been a lot more quality assurance issues. Certainly one thing that we are very considerate of is the cybersecurity elements, and that being, breaches have become more common. There are certainly big news stories about breaches of systems directly linked to AI-generated code because it has not been quality assured properly, it has not been tested properly. Northcoders AI aims to work across that model with a shorter skills and training framework. It also opens up the opportunity for COUNTER, which has always been all about pod models, where we have had a tech leader and some individuals recruited either through tech returners or ideally through the Northcoders training or through other junior engineers.
Chris Hill: But obviously it has not come without its problems. There has definitely been cultural change problems for organizations, and there has definitely been a lot more quality assurance issues. Certainly one thing that we are very considerate of is the cybersecurity elements, and that being, breaches have become more common. There are certainly big news stories about breaches of systems directly linked to AI-generated code because it has not been quality assured properly, it has not been tested properly. Northcoders AI aims to work across that model with a shorter skills and training framework. It also opens up the opportunity for COUNTER, which has always been all about pod models, where we have had a tech leader and some individuals recruited either through tech returners or ideally through the Northcoders training or through other junior engineers.
Speaker #3: There are certainly big news stories about breaches of systems directly linked to AI-generated code because it has not been quality assured properly. It has not been tested properly.
Speaker #3: So, what Northcoders AI does is it aims to work across that model with a shorter skills and training framework. Also, it opens up the opportunity for Counter, which has always been all about pod models, where we've had a tech leader and some individuals recruited either through Tech Returners, or ideally through the Northcoders training, or through other kinds of junior engineers.
Speaker #3: But with the movement for what they call forward deployed engineering, which Northcoders AI is at the heart of, we now have the ability for people with who are more experienced and are able to go in as a single person or a pair into an organization such as kind of bringing down that sort of barrier to the large contract size required to grow Counter.
Chris Hill: But with the movement for what they call forward deployed engineering, which Northcoders AI is at the heart of, we now have the ability for people who are more experienced and are able to go in, as a single person or a pair, into an organization. It is just bringing down that barrier to the large contract size required to grow COUNTER. We have had some really great short-term traction. It is well known that we have a case study, and we have been growing the amount of people who we have within HM Revenue & Customs through COUNTER. It is well into double figures now. Through Northcoders AI initiative, we have actually just signed up another major central government organization. We are in a very early stage of that. It is the discovery phase, and obviously we have to be running the AI Foundry to build those teams out.
Chris Hill: But with the movement for what they call forward deployed engineering, which Northcoders AI is at the heart of, we now have the ability for people who are more experienced and are able to go in, as a single person or a pair, into an organization. It is just bringing down that barrier to the large contract size required to grow COUNTER. We have had some really great short-term traction. It is well known that we have a case study, and we have been growing the amount of people who we have within HM Revenue & Customs through COUNTER. It is well into double figures now. Through Northcoders AI initiative, we have actually just signed up another major central government organization. We are in a very early stage of that. It is the discovery phase, and obviously we have to be running the AI Foundry to build those teams out.
Speaker #3: And we've had some really great short-term traction. It's well known that we have a case study, and we've been growing the number of people we have within HMRC through Counter.
Speaker #3: It's well into double figures now. We've actually, through Northcoders' AI initiative, just signed up another major central government organization. We're in a very early stage of that.
Speaker #3: It's the discovery phase. And obviously, we have to be running the AI Foundry to build those teams out. But we think it's certainly got a very significant opportunity to the great work we've done testament to the case studies in HMRC and the ability to be able to compete for that type of business through the frameworks and the certifications that we've got ourselves onto, which for the size of this business is relatively unheard of.
Chris Hill: But we think it has certainly got a very exciting opportunity to the great work we have done, testament to the case studies in HM Revenue & Customs and the ability to be able to compete for that type of business through the frameworks and the certifications that we have got ourselves onto, which for the size of this business is relatively unheard of. We are able to be agile and people love the brand, obviously, the life-changing opportunities for individuals, and it has been really good to get through that, and we are starting to actively see pipeline building through those certifications and frameworks. Okay, I will go through the finances. Obviously, I am not going to just read through the numbers on the income statement. This presentation is certainly publicly available.
Chris Hill: But we think it has certainly got a very exciting opportunity to the great work we have done, testament to the case studies in HM Revenue & Customs and the ability to be able to compete for that type of business through the frameworks and the certifications that we have got ourselves onto, which for the size of this business is relatively unheard of. We are able to be agile and people love the brand, obviously, the life-changing opportunities for individuals, and it has been really good to get through that, and we are starting to actively see pipeline building through those certifications and frameworks. Okay, I will go through the finances. Obviously, I am not going to just read through the numbers on the income statement. This presentation is certainly publicly available.
Speaker #3: So we're able to be agile and people love the brand of the life-changing opportunities for individuals. And so it's been really good to get through that.
Speaker #3: And we are starting to actively see pipeline building through those certifications and frameworks. Okay. I'll go through the finances. I think, yeah, obviously, I'm not going to just read through the numbers on the income statement.
Speaker #3: This presentation is certainly publicly available. But yeah, just the key takeaways are that the contracted revenue for the full year is much higher than H1, and also the costs are reduced.
Chris Hill: The key takeaways is that the contracted revenue for the full year is much higher than H1. Also the costs are reduced, and we are not carrying any of those extra costs in the gross profit line. So the gross profit margin, there is no risk to that at this point. Move on to the cash. In terms of at the period end, obviously, a lot of cash has been utilized through the restructuring and obviously through the losses sustained as we have transitioned the business. That has now come to an end. The company in Q4 this year is EBITDA positive. We do not expect that to change either going forward. Cash is relatively quickly collected from corporate clients. So we have a similar amount of cash today as we had at the end of this period.
Chris Hill: The key takeaways is that the contracted revenue for the full year is much higher than H1. Also the costs are reduced, and we are not carrying any of those extra costs in the gross profit line. So the gross profit margin, there is no risk to that at this point. Move on to the cash. In terms of at the period end, obviously, a lot of cash has been utilized through the restructuring and obviously through the losses sustained as we have transitioned the business. That has now come to an end. The company in Q4 this year is EBITDA positive. We do not expect that to change either going forward. Cash is relatively quickly collected from corporate clients. So we have a similar amount of cash today as we had at the end of this period.
Speaker #3: And we're not carrying any of those extra costs in the gross profit line. We're literally—so the gross profit margin—there's no risk to that at this point.
Speaker #3: Move on to the cash. So in terms of the period end, obviously, there has been a lot of cash has been utilized through the restructuring.
Speaker #3: And obviously, through the losses sustained as we've transitioned the business, but that has now come to an end. The company is, in Q4 this year, EBITDA positive.
Speaker #3: And we don't expect that to change either going forward. So cash is relatively quickly collected from corporate clients. So we've got a similar amount of cash today as we had at the end of this period.
Speaker #3: And so, obviously, we're generating the cash from operating activities. And we do, of course, have our monthly contracted repayments to NatWest, which we're fully up to date with.
Chris Hill: We are generating the cash from operating activities, and we do, of course, have our monthly contracted repayments to NatWest, which we are fully up to date with. We are fully up to date with all of our creditors and repayments as well. So there is nothing in the cash balance that is owed for income tax or anything around that. Obviously the cash discipline remains super important. Yes, there are areas where we would like to go faster. We would like more discretionary spending on marketing activity, sales activity, but we are launching new products. So still remaining exciting, but being really conscious about the cash. I think, again, the balance sheet remains relatively unchanged. We have not been investing capital into engineering or fixed assets. So that is just there for people who are interested. There has not been any new fundraisers or shares issued in the period, so everything does remain unchanged.
Chris Hill: We are generating the cash from operating activities, and we do, of course, have our monthly contracted repayments to NatWest, which we are fully up to date with. We are fully up to date with all of our creditors and repayments as well. So there is nothing in the cash balance that is owed for income tax or anything around that. Obviously the cash discipline remains super important. Yes, there are areas where we would like to go faster. We would like more discretionary spending on marketing activity, sales activity, but we are launching new products. So still remaining exciting, but being really conscious about the cash. I think, again, the balance sheet remains relatively unchanged. We have not been investing capital into engineering or fixed assets. So that is just there for people who are interested. There has not been any new fundraisers or shares issued in the period, so everything does remain unchanged.
Speaker #3: We're fully up to date with all of our creditors and repayments as well. So there's nothing in the cash balance that I don't know is owed to for income tax or anything around that.
Speaker #3: So, obviously, cash discipline remains super important. Yes, there are areas where we would like to go faster. We'd like more discretionary spending on marketing activities and sales activity.
Speaker #3: But we are launching new products. There's still some remaining excitement, but we're being very conscious about the cash. I think, again, the balance sheet remains relatively unchanged.
Speaker #3: We haven't been investing capital into engineering or fixed assets, so that's just there for people who are interested. There have not been any new fundraisers or shares issued in the period.
Speaker #3: So, everything does remain unchanged. Cool. I'll just wrap up before I go into the questions. Obviously, we've now certainly reached run-rate break-even and are going into profitability with our contracted revenue for Q4.
Chris Hill: Cool. I will just wrap up before I go into the questions. Obviously, we now certainly run rate break even and going into profitability with our contracted revenue for Q4. The monthly overhead costs outside of below the gross profit we were coming into the year were over GBP 230,000 and they are now around GBP 170,000. That is where we can still grow while keeping the cost base around that area certainly until we reach a good percentage of profitability. We have a near-term pipeline which is very confident in conversion for COUNTER contracts, which does include new clients as well as I mentioned before, we have just started work with a second major government department. So we are going to do everything that we can to bring that into being a large contracted contract as quickly as we can. There are more near-term corporate training opportunities through Northcoders AI Foundry.
Chris Hill: Cool. I will just wrap up before I go into the questions. Obviously, we now certainly run rate break even and going into profitability with our contracted revenue for Q4. The monthly overhead costs outside of below the gross profit we were coming into the year were over GBP 230,000 and they are now around GBP 170,000. That is where we can still grow while keeping the cost base around that area certainly until we reach a good percentage of profitability. We have a near-term pipeline which is very confident in conversion for COUNTER contracts, which does include new clients as well as I mentioned before, we have just started work with a second major government department. So we are going to do everything that we can to bring that into being a large contracted contract as quickly as we can. There are more near-term corporate training opportunities through Northcoders AI Foundry.
Speaker #3: The monthly kind of overhead costs outside of below the gross profit were coming into the year were over 230,000. And they're now around 170.
Speaker #3: And that is where we can still grow, while keeping the cost base around that area, certainly until we reach a good percentage of profitability.
Speaker #3: Yeah, we have a near-term pipeline, which is very confident in conversion for counter contracts. This does include new clients. As I mentioned before, we have just started work with a second major government department.
Speaker #3: So we're going to do everything that we can to bring that into being, like a large contracted contract, as quickly as we can. There's more kind of near-term training, corporate training opportunities through Northcoders AI Foundry.
Speaker #3: We're having some interesting conversations around that as well. Okay, I'm going to flip to some questions that were— I'll go to the questions first that were submitted before the presentation.
Chris Hill: We are having some interesting conversations around that as well. Okay. I will go to the questions first that were submitted before the presentation. Question one, there are rumors that Northcoders might go private. Is that true? I know possibly that is speculation. I do not really think it is appropriate for me to comment on individual or rumors found on stock and share forums. But we remain an AIM-listed business, and we do believe that AIM offers us valuable strategic options, which we are looking at. I know that one example I use for this with people is people say, "Oh, it is very expensive for a company of your size being on AIM." While that is true, something like the ISO certifications and the frameworks that we are now getting opportunities through from public sector is unusual for a company of our size.
Chris Hill: We are having some interesting conversations around that as well. Okay. I will go to the questions first that were submitted before the presentation. Question one, there are rumors that Northcoders might go private. Is that true? I know possibly that is speculation. I do not really think it is appropriate for me to comment on individual or rumors found on stock and share forums. But we remain an AIM-listed business, and we do believe that AIM offers us valuable strategic options, which we are looking at. I know that one example I use for this with people is people say, "Oh, it is very expensive for a company of your size being on AIM." While that is true, something like the ISO certifications and the frameworks that we are now getting opportunities through from public sector is unusual for a company of our size.
Speaker #3: Question one, there are rumors that Northcoders might go private is that true? So possibly there's speculation. I don't really think it's appropriate for me to comment on individual or rumors found on kind of stock and share forums.
Speaker #3: But we remain an AIM-listed business, and we do believe that AIM offers us valuable strategic options, which we are looking at. I know that one example I use for this with people is, people say, "It's very expensive for a company of your size being on AIM." And, yeah, while that's true, things like the ISO certifications and the frameworks that we're now getting opportunities through from the public sector are unusual for a company of our size.
Speaker #3: And the reason why it's been easier for us is all of the kind of the compliance and all of the regulatory matters that you need in place to trade on AIM.
Chris Hill: The reason why it has been easier for us is all of the compliance and all the regulatory matters that you need in place to trade on AIM and to keep the authorities of AIM happy that you are doing everything you need to do. The changes in the share price have been slow, and I do think that we do have good news coming down the line. Once we get back to profitability, that will be a time where it might be more exciting in terms of investors and shareholder value. Which is moving me on to the second question of how I propose to bring shareholder value given the share price. Well, now that all the restructuring is done, we can really focus on the business. That is a bit that we can control. We cannot control much sometimes about the share price, about the sentiment.
Chris Hill: The reason why it has been easier for us is all of the compliance and all the regulatory matters that you need in place to trade on AIM and to keep the authorities of AIM happy that you are doing everything you need to do. The changes in the share price have been slow, and I do think that we do have good news coming down the line. Once we get back to profitability, that will be a time where it might be more exciting in terms of investors and shareholder value. Which is moving me on to the second question of how I propose to bring shareholder value given the share price. Well, now that all the restructuring is done, we can really focus on the business. That is a bit that we can control. We cannot control much sometimes about the share price, about the sentiment.
Speaker #3: And to keep the authorities at AIM happy that you're doing everything you need to do. So, obviously, the change in the share price has been slow.
Speaker #3: And I do think that we do have good news coming down the line, though. And once we get back to profitability, that will be a time where it might be more exciting in terms of investors and shareholder value, which is moving me on to the second question of how I propose to bring shareholder value, given the share price.
Speaker #3: Well, now that all the restructuring is done, we can really focus on the business. That's a bit that we can control. I can't control much.
Speaker #3: Sometimes it's about the share price, about the sentiment. But what we can do is focus on the underlying business and deliver. And, obviously, the immediate priority is protecting our cash balance through generating operating cash, growing counter, and the corporate revenues.
Chris Hill: What we can do is focus on the underlying business and deliver. Immediate priority is protecting cash balance through generating operating cash, growing COUNTER and the corporate revenues, and doing that in a way that we are not rebuilding a big cost base. We remain very careful over where we spend money and constantly ask ourselves, "Do we need to spend money on this? Is there a way of doing it where we are not risking the growth trajectory of the business by keeping the cost as low as we can?" Question three, can we have a 12-month broker forecast to improve sentiment? I cannot talk about broker forecasts. However, the brokers put forecasts out this morning, so that is Zeus Capital. That is forecast for the remainder of this year, which we have talked about.
Chris Hill: What we can do is focus on the underlying business and deliver. Immediate priority is protecting cash balance through generating operating cash, growing COUNTER and the corporate revenues, and doing that in a way that we are not rebuilding a big cost base. We remain very careful over where we spend money and constantly ask ourselves, "Do we need to spend money on this? Is there a way of doing it where we are not risking the growth trajectory of the business by keeping the cost as low as we can?" Question three, can we have a 12-month broker forecast to improve sentiment? I cannot talk about broker forecasts. However, the brokers put forecasts out this morning, so that is Zeus Capital. That is forecast for the remainder of this year, which we have talked about.
Speaker #3: And we're doing that in a way that doesn't rebuild a big cost base. We remain very careful about where we spend money and constantly ask ourselves: do we need to spend money on this?
Speaker #3: Is there a way of doing it where we're not risking the growth trajectory of the business by keeping the cost as low as we can?
Speaker #3: Can we have a 12-month broker forecast to improve? Question three: can we have a 12-month broker forecast to improve sentiment? So, I can't talk about broker forecasts. However, yes, the brokers' forecast came out this morning.
Speaker #3: So that's Zeus Capital, and that's the forecast for the remainder of this year, which we've talked about. They are available through Zeus Capital's website directly, or they're also available on Research Tree.
Chris Hill: They are available through Zeus Capital's website directly, or they are also available on Research Tree. I am not allowed to go into them, but they are available. It has been good to have now that we have sort of the point where we know what the visibility looks like and that we have done with the restructuring and so on. It has been good. It should improve sentiment having those back in the market. Question four, how has the training market changed, and how is the transition progressing? The government-funded training market has changed substantially. We all know the new prime minister, coming out of Manchester, may or may not do something different with that. I think it is not only the government framework that has changed that. There has been a downturn in graduate recruitment that we do see changing, which is just good for the world.
Chris Hill: They are available through Zeus Capital's website directly, or they are also available on Research Tree. I am not allowed to go into them, but they are available. It has been good to have now that we have sort of the point where we know what the visibility looks like and that we have done with the restructuring and so on. It has been good. It should improve sentiment having those back in the market. Question four, how has the training market changed, and how is the transition progressing? The government-funded training market has changed substantially. We all know the new prime minister, coming out of Manchester, may or may not do something different with that. I think it is not only the government framework that has changed that. There has been a downturn in graduate recruitment that we do see changing, which is just good for the world.
Speaker #3: So yeah, I'm not allowed to go into them, but they are available. And it's been good to have now that we've sort of the point where we know that what the visibility looks like and that we've done with the restructuring and so on, it's been good.
Speaker #3: It should improve sentiment having those back in the market. How is the trading market? Question four: How has the trading market changed, and how is the transition progressing?
Speaker #3: So obviously, yeah, the government-funded trading market has changed substantially. Obviously, we all know the new prime minister, one of coming out of Manchester, may or may not do something different with that.
Speaker #3: But I think it's not only the government framework that's changed that. There has also been there has been a downturn in graduate recruitment that we do see changing, which is obviously just good for the world.
Speaker #3: I went to read the regional authorities, but it was incredibly fragmented, and everything was different. All of the timeframes were different, and it was really difficult to juggle them all.
Chris Hill: Went to regional authorities, but it was incredibly fragmented, and everything was different. All of the time frames were different, and it was really difficult to juggle them all. Ultimately, we are working with Greater London Authority. We are training people now. They are super happy. We are hitting our KPIs. We are looking to continue doing that with those. The price paid per individual simply was not enough for us to We have always given the tech industry the skills it needs and created life-changing opportunities for individuals, and there just was not the size of funding that they wanted to allocate per head basis on the skills bootcamps, just was not worth it. Hopefully that answers that question. I will go and see what questions have been submitted while we have been doing the presentation. I am sorry, I am not sure where they have gone. Sorry, could someone at IMC help me with the questions panel, please?
Chris Hill: Went to regional authorities, but it was incredibly fragmented, and everything was different. All of the time frames were different, and it was really difficult to juggle them all. Ultimately, we are working with Greater London Authority. We are training people now. They are super happy. We are hitting our KPIs. We are looking to continue doing that with those. The price paid per individual simply was not enough for us to We have always given the tech industry the skills it needs and created life-changing opportunities for individuals, and there just was not the size of funding that they wanted to allocate per head basis on the skills bootcamps, just was not worth it. Hopefully that answers that question. I will go and see what questions have been submitted while we have been doing the presentation. I am sorry, I am not sure where they have gone. Sorry, could someone at IMC help me with the questions panel, please?
Speaker #3: And ultimately, we're working with Greater London. We're training people now. They're super happy. We're hitting our KPIs, and we're looking to continue doing that with those.
Speaker #3: But the price paid per individual simply wasn't enough for us to we've always given the tech industry the skills it needs and created life-changing opportunities for individuals.
Speaker #3: And there just wasn't the size of funding that they wanted to allocate on a per-head basis for the skills boot camps—it just wasn't worth it.
Speaker #3: So hopefully that answers that question. I'll go and see what questions have been submitted while we have been doing the presentation. Sorry, I'm not sure where they've gone.
Speaker #3: So could someone at IMC help me with the questions panel, please?
Speaker #2: Yeah, of course. In the bottom right-hand corner of your screen, Christian, I have a button that says "Chat."
Operator 2: Yep, of course. Bottom right-hand corner of your screen, Chris, should have a button that says Chat.
Operator: Yep, of course. Bottom right-hand corner of your screen, Chris, should have a button that says Chat.
Speaker #1: Oh, chat. Okay, sorry. I thought it would say 'Questions,' not 'Chat.'
Chris Hill: Oh, chat. Okay, sorry. I thought you said questions, not chat.
Chris Hill: Oh, chat. Okay, sorry. I thought you said questions, not chat.
Speaker #2: If you just click on that for me, and then hit Q&A, you should see the questions that have come in in that panel there.
Operator 2: If you just click on that for me and then hit Q&A, you should see the questions that have come in that panel there.
Operator: If you just click on that for me and then hit Q&A, you should see the questions that have come in that panel there.
Speaker #1: Okay, I think I've just explained the first question on there. So, there were rumors that insider trading took place a few weeks ago, which caused the share price to crash for AT&P.
Chris Hill: Okay. I think I've just explained the first question on there. There were rumors that insider trading took place a few weeks ago, which caused the share price to crash for HMP. Are these true? I'm not going to comment on this question, but I don't think there's been anything, certainly nothing's been reported. Sorry, I should have probably just ignored that one. As the mix move towards corporate contracts, should we expect working capital to become structurally less demanding? Yes. Obviously, sometimes what happens with the Corporate contracts is when you first get them and you get a new client, it can be quite difficult to get the payroll set, get the pay set up, the purchase orders, and we have had a few delays, but cash collections have significantly improved.
Chris Hill: Okay. I think I've just explained the first question on there. There were rumors that insider trading took place a few weeks ago, which caused the share price to crash for HMP. Are these true? I'm not going to comment on this question, but I don't think there's been anything, certainly nothing's been reported. Sorry, I should have probably just ignored that one. As the mix move towards corporate contracts, should we expect working capital to become structurally less demanding? Yes. Obviously, sometimes what happens with the Corporate contracts is when you first get them and you get a new client, it can be quite difficult to get the payroll set, get the pay set up, the purchase orders, and we have had a few delays, but cash collections have significantly improved.
Speaker #1: Are these true? I'm not going to comment on this question, but I don't think there's been anything—certainly nothing's been reported. Sorry, I should have probably just ignored that one.
Speaker #1: As the mix moved towards corporate contracts, should we expect working capital to become somewhat structurally less demanding? Yeah, yes. Obviously, sometimes what happens with the corporate contracts is when you first get them and you get a new client, it can be quite difficult to get the payroll set, get the pay set up, the purchase orders.
Speaker #1: And we have had a few delays, but cash collection is how significantly improved. But once you are working regularly with a client and our clients are super sticky, then yeah, the cash collections do come in monthly.
Chris Hill: But once you are working regularly with a client, and our clients are super sticky, the cash collections do come in monthly. That feels obviously it's a little in arrears. Northcoders, the cost comes out. The working capital's around about a 60 to 90-day change between the individuals that are on our payroll and the receivable from the contract. "What are the customers buying from Northcoders AI today, and how much of the emerging pipeline is genuinely new business versus cross-selling to existing customers?" We have a lot of partners. New businesses directly through marketing. We do get new clients all the time, but the business has obviously fundamentally changed, and now Northcoders AI is selling the ability to adopt AI in a much better way for your organization. It's focused on more senior people.
Chris Hill: But once you are working regularly with a client, and our clients are super sticky, the cash collections do come in monthly. That feels obviously it's a little in arrears. Northcoders, the cost comes out. The working capital's around about a 60 to 90-day change between the individuals that are on our payroll and the receivable from the contract. "What are the customers buying from Northcoders AI today, and how much of the emerging pipeline is genuinely new business versus cross-selling to existing customers?" We have a lot of partners. New businesses directly through marketing. We do get new clients all the time, but the business has obviously fundamentally changed, and now Northcoders AI is selling the ability to adopt AI in a much better way for your organization. It's focused on more senior people.
Speaker #1: And that is, obviously, a little in arrears. Northcoders’ costs come out. The working capital is around a 60- to 90-day change between the individuals that are on our payroll and the receivable from the contract.
Speaker #2: What are the customers buying from Northcoders AI today, and how much of the emerging pipeline is genuinely new business versus cross-selling to existing customers?
Speaker #1: So we have a lot of partners. We new businesses directly through marketing. Yeah, of course, we do. We do get new clients all the time.
Speaker #1: But the business has obviously fundamentally changed. And now, Northcoders AI is selling the ability to adopt AI in a much better way for your organization.
Speaker #1: It's focused on more senior people. So, of course, we are seeing people now working with Northcoders AI who did Northcoders six or seven years ago. Obviously, we've got a decade of building this community.
Chris Hill: So of course, we are seeing people now working with us on Northcoders AI who have done Northcoders 6, 7 years ago, and obviously got a decade of building this community. So that's been super strong. There are some new clients in the COUNTER pipeline. Sometimes the new clients will be people who have worked on a hiring basis with Northcoders over the years because there's been literally hundreds of those. But since we've got a bit of time, a bit more detail on the question. Northcoders AI is a 4-week framework based on content and simulations. It's quite, well, simulations if you're an individual. Individuals don't pay for Northcoders AI. The revenue model is the forward deployed engineers through COUNTER.
Chris Hill: So of course, we are seeing people now working with us on Northcoders AI who have done Northcoders six, seven years ago, and obviously got a decade of building this community. So that's been super strong. There are some new clients in the COUNTER pipeline. Sometimes the new clients will be people who have worked on a hiring basis with Northcoders over the years because there's been literally hundreds of those. But since we've got a bit of time, a bit more detail on the question. Northcoders AI is a four-week framework based on content and simulations. It's quite, well, simulations if you're an individual. Individuals don't pay for Northcoders AI. The revenue model is the forward deployed engineers through COUNTER.
Speaker #1: So that's been super strong. Yeah, there are some new clients in the counter pipeline. Sometimes the new clients will be people who have worked on a hiring basis with Northcodes over the years because there's been literally hundreds of those.
Speaker #1: But just since we've got a bit of time, I’ll give a bit more detail on the question. Northcoders AI is, yeah, it's a four-week framework based on content and simulations. It’s quite well—simulations, if you're an individual.
Speaker #1: Individuals don't pay for Northcodes AI. The revenue model is the forward deployed engineers through counter. And also we will be returning to the because now the training numbers are small within Northcoders, we are planning to bring back the recruitment fee model also because we still got a lot of demand to hire people from Northcodes due to our reputation.
Chris Hill: Also we will be returning to the, because now the training numbers are small within Northcoders, we are planning to bring back the recruitment fee model also, because we've still got a lot of demand to hire people from Northcoders due to our reputation. But recruitment fees were a historic part of the business, but they were replaced by the government framework because it was always a triparty employer, training partner, and individual. So the hiring fee basically came from the milestone through the contract. And then also businesses are able to put pods through Northcoders AI. So we say 3 or 4 people in a pod usually, that do different things within the technology organization, because the whole point of AI is being able to do things that have not necessarily been in your swim lane.
Chris Hill: Also we will be returning to the, because now the training numbers are small within Northcoders, we are planning to bring back the recruitment fee model also, because we've still got a lot of demand to hire people from Northcoders due to our reputation. But recruitment fees were a historic part of the business, but they were replaced by the government framework because it was always a triparty employer, training partner, and individual. So the hiring fee basically came from the milestone through the contract. And then also businesses are able to put pods through Northcoders AI. So we say three or four people in a pod usually, that do different things within the technology organization, because the whole point of AI is being able to do things that have not necessarily been in your swim lane.
Speaker #1: But recruitment fees were a historic part of the business. But they were replaced by the government framework because it was always a tri-party: employer, training partner, and individual. So the hiring fee basically came from the milestone through the contract.
Speaker #1: And then also businesses are able to put their pods through Northcodes AI. So we say three or four people in a pod usually that do different things within the technology organization because the whole point of AI is being able to do things that you're not that not necessarily been in your swim lane.
Speaker #1: We're able to bring agents together to work across lots of different areas. But because you don't know so much about, for example, quality assurance, they're where the risks lie and that's what Northcodes AI also looks at the cloud utilization costs and also the kind of tokens and the tooling costs and how we can best manage that and do it effectively.
Chris Hill: We're able to bring agents together to work across lots of different areas. But because you don't know so much about, for example, quality assurance, they're where the risks lie, and that's what Northcoders AI also looks at the cloud utilization costs and also the kind of tokens and the tooling costs and how we can best manage that and do it effectively. So that's a model for Northcoders AI for businesses. And it's obviously in the alpha stage now, so it's just a full-time 4-week framework for businesses. We do have the option to do that 2 days per week. We do also do training consulting, so we can deliver in an individual kind of contracted day rate over a period where we can deliver the content, and the simulations directly, at the flexible timing for the business.
Chris Hill: We're able to bring agents together to work across lots of different areas. But because you don't know so much about, for example, quality assurance, they're where the risks lie, and that's what Northcoders AI also looks at the cloud utilization costs and also the kind of tokens and the tooling costs and how we can best manage that and do it effectively. So that's a model for Northcoders AI for businesses. And it's obviously in the alpha stage now, so it's just a full-time four-week framework for businesses. We do have the option to do that two days per week. We do also do training consulting, so we can deliver in an individual kind of contracted day rate over a period where we can deliver the content, and the simulations directly, at the flexible timing for the business.
Speaker #1: So that's a model for Northcoders AI for businesses. And it's obviously in the health stage now, so it's just a full-time, four-week framework for businesses.
Speaker #1: We do have the option to do that two days per week. We do also do training consulting. So we can deliver on a in an individual kind of contracted day rate over a period where we can deliver the content and the simulations directly at the flexible timing for the business.
Speaker #1: So
Speaker #2: That came in this afternoon. Of course, if there are any further questions that do come through, we'll make these available to you after the presentation, just for you to review.
Operator 2: That came in this afternoon. Of course, if there are any further questions that do come through, we will make these available to you after the presentation just for you to review.
Operator: That came in this afternoon. Of course, if there are any further questions that do come through, we will make these available to you after the presentation just for you to review.
Speaker #2: But, Chris, perhaps before we proceed now, I just want to redirect those on the call to provide you with their feedback, which I know is particularly important to yourself and to the company.
Chris Hill: Thank you.
Chris Hill: Thank you.
Operator 2: Chris, perhaps before, really now just looking to redirect those on the call to provide you with their feedback, which I know is particularly important to yourself and for the company. If I could please just ask you for a few closing comments just to wrap up with, that would be great.
Operator: Chris, perhaps before, really now just looking to redirect those on the call to provide you with their feedback, which I know is particularly important to yourself and for the company. If I could please just ask you for a few closing comments just to wrap up with, that would be great.
Speaker #2: If I could please just ask you for a few closing comments, just to wrap up, that'd be great.
Speaker #1: Yeah, I think that the I've had really good support from the shareholders that I've spoken to during the course of today and the main message is that we have finished our restructuring.
Chris Hill: Yeah, I think that I have had really good support from the shareholders that I have spoken to during the course of today. The main message is that we have finished our restructuring. Yes, we want it to go faster on the revenue, but we are seeing those sales growing. We are not making growth to the below the line costs and the growth profit is the cost of sale are directly linked to the revenue, not sat there causing sort of stealth overhead. Yet all of our contracts being cash generative, we are being super cautious on discretionary spending. Of course, we would like to spend more on sales and marketing, but we will soon be EBITDA positive again, and that is when we can start to see how the sales accelerate and then make decisions on being more aggressive to grow further.
Chris Hill: Yeah, I think that I have had really good support from the shareholders that I have spoken to during the course of today. The main message is that we have finished our restructuring. Yes, we want it to go faster on the revenue, but we are seeing those sales growing. We are not making growth to the below the line costs and the growth profit is the cost of sale are directly linked to the revenue, not sat there causing sort of stealth overhead. Yet all of our contracts being cash generative, we are being super cautious on discretionary spending. Of course, we would like to spend more on sales and marketing, but we will soon be EBITDA positive again, and that is when we can start to see how the sales accelerate and then make decisions on being more aggressive to grow further.
Speaker #1: Yes, we wanted to go faster on the revenue, but we are seeing those sales growing. We're not making growth to the below-the-line costs.
Speaker #1: And the gross profit is—the cost of sale is directly linked to the revenue, not sitting there causing sort of stealth overhead. And yeah, all of our contracts being cash generative, we are being super cautious on discretionary spending, of course.
Speaker #1: We'd like to spend more on sales and marketing, but we will soon be EBITDA positive again. That's when we can start to see how the sales accelerate, and then make decisions on being more—well, being more aggressive to grow further.
Speaker #1: But yeah, thanks. Thank you, shareholders, for the support. Understanding that it's been sort of a—just taking us 12 to 15 months where we've sustained not only EBITDA losses, but obviously a significant amount of restructuring costs, which has hit the cash balance.
Chris Hill: But yes, thank you, shareholders for the support, understanding that it has been sort of, it has just taken us 12 to 15 months where we sustained not only EBITDA losses, but obviously a significant amount of restructuring costs, which has hit the cash balance. But we are through that now and obviously I hope to be able to release more news to the market now that we have actually some research and some sort of numbers that we mentioned earlier you can get from Zeus Capital. So I look forward to keeping people updated. And thank you again.
Chris Hill: But yes, thank you, shareholders for the support, understanding that it has been sort of, it has just taken us 12 to 15 months where we sustained not only EBITDA losses, but obviously a significant amount of restructuring costs, which has hit the cash balance. But we are through that now and obviously I hope to be able to release more news to the market now that we have actually some research and some sort of numbers that we mentioned earlier you can get from Zeus Capital. So I look forward to keeping people updated. And thank you again.
Speaker #1: But we are through that now. And, obviously, I hope to—with hope to be able to release more news to the market now that we actually have some research and some numbers that we mentioned earlier.
Speaker #1: You can get that from Zeus, so I look forward to keeping people updated. And thank you again.
Speaker #2: Perfect, Chris. That's great. And thank you once again for updating investors this afternoon. Could I please ask investors not to close this session as you'll now be automatically redirected for the opportunity to provide your feedback?
Operator 2: Perfect, Chris. That is great. And thank you once again for updating investors this afternoon. Could I please ask investors not to close this session, as you will now be automatically redirected for the opportunity to provide your feedback. On behalf of the management team with Northcoders.
Operator: Perfect, Chris. That is great. And thank you once again for updating investors this afternoon. Could I please ask investors not to close this session, as you will now be automatically redirected for the opportunity to provide your feedback. On behalf of the management team with Northcoders.
