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Close Brothers Group
(LSE:CBG)
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Rating:51Neutral
Price Target:
414.00 p
▼(-16.67% Downside)
Action:Reiterated
Date:04/17/26
The score is held back primarily by weakening financial performance (revenue decline, net loss, and higher leverage), partially offset by a strong rebound in operating/free cash flow. Technicals are moderately supportive with the price above major moving averages and positive momentum indicators, but valuation remains challenged due to negative earnings and the absence of a dividend yield.
Positive Factors
Cash generation rebound
A strong rebound to positive operating and free cash flow provides durable internal funding to support loan originations, deleveraging or investment in wealth capabilities. Reliable cash conversion reduces reliance on external capital and cushions the business versus earnings volatility.
Negative Factors
Sharp revenue decline and net loss
A large, persistent drop in revenue and a swing to net loss reduce retained earnings and constrain reinvestment. This weakens the group's ability to grow lending books or fund wealth initiatives organically and raises the risk of recurring profitability shortfalls.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation rebound
A strong rebound to positive operating and free cash flow provides durable internal funding to support loan originations, deleveraging or investment in wealth capabilities. Reliable cash conversion reduces reliance on external capital and cushions the business versus earnings volatility.
Read all positive factors
Close Brothers Group (CBG) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£614.94M
Dividend YieldN/A
Average Volume (3M)433.51K
Price to Earnings (P/E)―
Beta (1Y)2.30
Revenue Growth-18.61%
EPS Growth48.41%
CountryUK
Employees3,000
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)-0.35
Shares Outstanding150,703,220
10 Day Avg. Volume391,302
30 Day Avg. Volume433,515
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)0.39
Price to Sales (P/S)0.89
P/FCF Ratio1.75
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£512.50Price Target Upside3.16% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.39
Revenue Forecast (FY)£642.42M
Close Brothers Group Business Overview & Revenue Model
Company Description
Close Brothers Group plc is a long-established UK-based merchant bank, dedicated to providing a comprehensive range of financial solutions to individuals and small enterprises across the United Kingdom. Its operations are strategically segmented i...
How the Company Makes Money
CBG makes money mainly by originating and servicing loans and earning spread income between what it charges borrowers and what it pays to fund those assets. Its core revenue stream is net interest income from its specialist lending portfolios (e.g...
Close Brothers Group Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
46
Neutral
Cash Flow
55
Neutral
| Breakdown | TTM | Jul 2025 | Jul 2024 | Jul 2023 | Jul 2022 | Jul 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 654.80M | 681.30M | 1.02B | 1.32B | 1.12B | 1.14B |
| Gross Profit | 375.30M | 681.30M | 1.02B | 1.01B | 1.01B | 1.02B |
| EBITDA | 11.60M | 124.30M | 252.30M | 220.20M | 333.10M | 388.60M |
| Net Income | -30.50M | -77.90M | 100.40M | 81.10M | 165.20M | 202.10M |
Balance Sheet | ||||||
| Total Assets | 12.28B | 14.07B | 14.08B | 13.55B | 12.68B | 12.03B |
| Cash, Cash Equivalents and Short-Term Investments | 1.39B | 1.92B | 1.58B | 2.21B | 1.38B | 1.44B |
| Total Debt | 2.37B | 2.51B | 2.36B | 2.99B | 3.03B | 2.75B |
| Total Liabilities | 10.82B | 12.53B | 12.24B | 11.91B | 11.02B | 10.47B |
| Stockholders Equity | 1.47B | 1.54B | 1.84B | 1.64B | 1.66B | 1.57B |
Cash Flow | ||||||
| Free Cash Flow | 390.00M | 345.80M | -426.50M | 631.20M | -259.80M | 43.30M |
| Operating Cash Flow | 395.70M | 351.10M | -382.00M | 693.10M | -201.40M | 100.10M |
| Investing Cash Flow | 130.20M | 61.40M | -1.15B | -603.60M | -243.70M | -806.60M |
| Financing Cash Flow | -1.12B | -155.20M | 513.40M | 736.80M | 391.50M | 681.80M |
Close Brothers Group Technical Analysis
Negative
496.80
Price Trends
438.84
Negative
434.14
Negative
453.46
Negative
Market Momentum
-9.01
Negative
44.36
Neutral
51.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CBG, the sentiment is Negative. The current price of 496.8 is above the 20-day moving average (MA) of 420.35, above the 50-day MA of 438.84, and above the 200-day MA of 453.46, indicating a bearish trend. The MACD of -9.01 indicates Negative momentum. The RSI at 44.36 is Neutral, neither overbought nor oversold. The STOCH value of 51.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:CBG.
Close Brothers Group Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | £2.91B | 14.41 | 47.78% | 4.70% | 0.05% | 6.54% | |
76 Outperform | £5.75B | 20.51 | 26.63% | 3.62% | ― | ― | |
69 Neutral | £1.96B | 25.96 | 16.86% | 4.65% | 16.10% | 21.35% | |
69 Neutral | £2.48B | 14.02 | 9.39% | 6.35% | 4.73% | 15.14% | |
68 Neutral | £11.60B | 8.10 | 13.48% | 6.78% | -3.55% | 5.64% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
51 Neutral | £614.94M | -11.76 | -9.28% | ― | -18.61% | 48.41% |
* Financial Sector Average
GB:CBG
Close Brothers Group
411.60
-2.60
-0.63%
GB:CMCX
CMC Markets
701.00
468.20
201.12%
GB:IGG
IG Group Holdings
1,743.00
726.68
71.50%
GB:INVP
Investec
624.00
101.51
19.43%
GB:PLUS
Plus500
4,210.00
1,002.42
31.25%
GB:TCAP
TP ICap
350.40
58.39
20.00%
Close Brothers Group Corporate Events
Other
Close Brothers executives add to holdings under share incentive plan
Positive
Jul 7, 2026
Close Brothers Group has reported routine share purchases by several senior executives under its Share Incentive Plan. Group Head of Human Resources Rebekah Etherington, Group Chief Finance Officer Fiona McCarthy, Group Chief Risk Officer Robert S...
Regulatory Filings and Compliance
Close Brothers Updates Share Capital and Voting Rights Figures
Neutral
Jul 1, 2026
Close Brothers Group has reported that as of 30 June 2026 it had 152,060,290 issued ordinary shares of 25p each, of which 1,346,801 are held in treasury, leaving 150,713,489 shares carrying voting rights. The disclosure clarifies the company’...
Business Operations and StrategyRegulatory Filings and Compliance
Close Brothers to Retain PwC as External Auditor After Formal Tender
Positive
Jul 1, 2026
Close Brothers Group has confirmed that, following a formal tender process overseen by its Audit Committee, its Board has approved the proposed re-appointment of PricewaterhouseCoopers as external auditor from the financial year ending 31 July 202...
Business Operations and StrategyRegulatory Filings and Compliance
Close Brothers Executives Acquire Shares Under Incentive Plan
Neutral
Jun 8, 2026
Close Brothers Group has disclosed a series of small share purchases by senior executives under its Share Incentive Plan. Ordinary shares of 25p each were acquired on 5 June on the London Stock Exchange at 459p per share, in transactions notified ...
Regulatory Filings and Compliance
Close Brothers Updates Total Voting Share Capital for Disclosure Purposes
Neutral
Jun 1, 2026
Close Brothers Group has disclosed that as of 31 May 2026 its issued listed share capital stands at 152,060,290 ordinary shares, of which 1,357,068 are held in treasury, leaving 150,703,222 ordinary shares carrying voting rights. The updated votin...
Business Operations and StrategyExecutive/Board Changes
Close Brothers grants senior executives options under 2026 Sharesave Scheme
Positive
May 21, 2026
Close Brothers Group has granted new three-year share options under its 2026 Sharesave Scheme to employees, including five senior executives who are classified as persons discharging managerial responsibilities. The options, all granted on 20 May ...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Close Brothers Delivers Solid Q3 as Cost Cuts Offset Motor Finance Provision
Positive
May 21, 2026
Close Brothers reported a solid third-quarter performance for its 2026 financial year, with resilient profitability in its lending divisions supported by a robust 7.0% year-to-date net interest margin and a 1% increase in its loan book to £9....
Business Operations and StrategyDelistings and Listing Changes
Close Brothers to Fully Redeem Remaining Tier 2 Notes Ahead of 2031 Maturity
Positive
May 13, 2026
Close Brothers Group has announced that it will redeem in full the remaining £8.62 million outstanding of its £200 million 2.00% Subordinated Tier 2 Notes due 2031. The early redemption, scheduled for 11 June 2026, follows a prior tender...
Regulatory Filings and Compliance
Close Brothers Executives Buy Shares Under Incentive Plan
Positive
May 6, 2026
Close Brothers Group has reported routine share purchases by several senior executives under its Share Incentive Plan, all executed on 5 May 2026 on the London Stock Exchange. Group Head of Human Resources Rebekah Etherington, Group Chief Finance ...
Regulatory Filings and Compliance
Close Brothers Updates Share Capital and Voting Rights Total
Neutral
May 1, 2026
Close Brothers Group has confirmed that as of 30 April 2026, its total issued listed share capital stands at 152,060,290 ordinary shares, of which 1,509,167 are held in treasury. This leaves 150,551,123 ordinary shares carrying voting rights, form...
Regulatory Filings and Compliance
Close Brothers Commercial CEO Exercises Share Options and Retains Stake
Neutral
Apr 29, 2026
Close Brothers Group has disclosed a transaction involving Matt Roper, Chief Executive Officer of its Commercial division, in line with regulatory requirements for senior management dealings. The notification concerns dealings in ordinary shares o...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.