While Northern Data Group’s Q325 trading update shows a steady improvement in operational metrics, they are not sufficient to support FY25 guidance and therefore the company has withdrawn them. Although we have had to reduce our forecasts again, the sequential improvements in Taiga Cloud offer comfort that, henceforth, forecasts should prove more robust. The company is now making significant progress in the sale of the Peak Mining assets.

Along with the release of H125 figures, Northern Data Group has provided an update on its strategic evolution, with news of third-party interest in acquiring the group, as well as an update on the sale of Peak Mining.

Northern Data has revised its targets for the current year, reflecting technology investments and changes in market conditions. While the investments will clearly have longer-term benefits, the reality is a setback for current-year expectations and turns 2025 into another year of transition. The company should remain of interest to investors wanting exposure to the longer-term growth in high performance computing (HPC) infrastructure fuelled by AI services.