The Sky Blues took a first half lead, before Liam Truslove (pictured) levelled the score just before the break when he headed the ball home from a corner.
But an unfortunate piece of defending saw Blues let the visitors in to score a second half winner.
Academy coach Steve Spooner felt his side had the better of the game and was disappointed to see them lose.
“We started off well, but they got their goal through poor play by us,” he said. “I was convinced we would get back in it and we scored right on half time.
“We started the second half well and weathered some pressure, but were then made to pay for a defensive mistake. It was the sort of goal that features on those football DVDs at Christmas! Nick Townsend kicked the ball straight against Reece Brown and it left their lad with an empty net to put the ball into.
“Looking at the positives we were probably the better team but we had a death wish at times where we didn’t concentrate for periods and then when the ball changed hands we needed to be quicker closing down.
“At the moment we’re getting punished for silly errors. We need to cut them out and that's something we’ve been working on in training to try and improve.”
Turning to goalscorer Liam Truslove, Spooner said he was pleased the midfielder was starting to find the back of the net on a more regular basis.
“It was nice for him to score and he’s started to add a few goals to his game now,” he added.
“He is an attack-minded midfield player and he’s heading in the right direction by scoring more regularly”.
Blues U18s: Nick Townsend, Josh Cogley, Bobby Moseley, Reece Brown, James Fry, Callum Thomson (Nat Kelly, 55), Foday Nabay, Liam Truslove, Reece Hales, Deqwon Ebanks (George McGee, 75), Demi Gray (Viv Solomon, 63).
Subs not used: Callum Preston, Charlee Adams.