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Close Brothers Group (GB:CBG)
:CBG

Close Brothers Group (CBG) AI Stock Analysis

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Close Brothers Group

(OTC:CBG)

Rating:60Neutral
Price Target:
418.00p
▲(7.18%Upside)
The overall score reflects significant challenges in financial performance and valuation, partially offset by strong technical indicators. The lack of earnings call data limits insights into management's strategic outlook. Positive corporate events contribute to stakeholder confidence, but the primary focus should be on addressing revenue and cash flow issues for long-term stability.

Close Brothers Group (CBG) vs. iShares MSCI United Kingdom ETF (EWC)

Close Brothers Group Business Overview & Revenue Model

Company DescriptionClose Brothers Group (CBG) is a leading UK-based merchant banking group that provides a diverse range of financial services. The company operates through three primary divisions: Banking, Securities, and Asset Management. The Banking division offers lending and deposit-taking services to a variety of sectors, including property, asset finance, and motor finance. The Securities division, known as Winterflood, specializes in providing trading and market-making services, while the Asset Management division offers wealth management services to both private and institutional clients.
How the Company Makes MoneyClose Brothers Group generates revenue through its diversified financial services offerings. In the Banking division, the company earns money through interest income on loans and advances to customers, as well as fees from transactional services. The Securities division, Winterflood, contributes to revenue through commissions and trading income by acting as a market maker and providing liquidity in securities markets. The Asset Management division generates income through management fees, advisory fees, and performance fees based on assets under management. The group's earnings are also supported by its strategic focus on maintaining strong customer relationships, risk management practices, and capitalizing on growth opportunities within its specialized markets. Significant factors contributing to its earnings include its expertise in niche markets, robust capital position, and a stable funding base.

Close Brothers Group Financial Statement Overview

Summary
Close Brothers Group faces revenue decline and cash flow challenges, with a significant 23.2% drop in revenue and negative free cash flow in 2024. However, the balance sheet remains stable with reduced leverage and adequate equity. Profitability margins have declined, but cost controls are in place.
Income Statement
65
Positive
The income statement shows a declining revenue trend from 2023 to 2024, with a significant drop of approximately 23.2%. Gross profit margins remain strong at 100%, typical for the banking industry, but the net profit margin decreased from 6.08% in 2023 to 9.81% in 2024. While EBIT and EBITDA margins also depict a decline, the company has managed to maintain positive profitability, suggesting cost controls are in place despite revenue pressures.
Balance Sheet
72
Positive
The balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.28 in 2024, slightly improved from 1.81 in 2023, indicating reduced leverage. The equity ratio is 13.08%, showcasing a moderate equity base relative to total assets. Return on equity decreased to 5.45% in 2024 from 4.93% in 2023, reflecting reduced profitability but still acceptable for the banking sector.
Cash Flow
50
Neutral
The cash flow statement highlights challenges with negative free cash flow in 2024, a reversal from positive free cash flow in 2023. Operating cash flow to net income ratio is negative, indicating cash management issues. The free cash flow to net income ratio also reflects a negative trend, suggesting potential liquidity concerns and a need for improved cash management strategies.
BreakdownTTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue1.18B1.02B1.32B1.12B1.14B748.90M
Gross Profit1.20B1.02B1.01B1.01B1.02B748.90M
EBITDA163.10M252.30M220.20M333.10M388.60M236.70M
Net Income-91.30M100.40M81.10M165.20M202.10M109.50M
Balance Sheet
Total Assets14.44B14.08B13.55B12.68B12.03B11.07B
Cash, Cash Equivalents and Short-Term Investments0.001.58B2.21B1.38B1.44B1.46B
Total Debt2.58B2.36B2.99B3.03B2.75B2.76B
Total Liabilities12.93B12.24B11.91B11.02B10.47B9.62B
Stockholders Equity1.51B1.84B1.64B1.66B1.57B1.45B
Cash Flow
Free Cash Flow316.10M-426.50M631.20M-259.80M43.30M125.90M
Operating Cash Flow323.80M-382.00M693.10M-201.40M100.10M175.50M
Investing Cash Flow-469.90M-1.15B-603.60M-243.70M-806.60M-177.30M
Financing Cash Flow403.20M513.40M736.80M391.50M681.80M274.80M

Close Brothers Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price390.00
Price Trends
50DMA
348.45
Positive
100DMA
328.54
Positive
200DMA
305.08
Positive
Market Momentum
MACD
11.70
Negative
RSI
61.97
Neutral
STOCH
77.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CBG, the sentiment is Positive. The current price of 390 is above the 20-day moving average (MA) of 368.94, above the 50-day MA of 348.45, and above the 200-day MA of 305.08, indicating a bullish trend. The MACD of 11.70 indicates Negative momentum. The RSI at 61.97 is Neutral, neither overbought nor oversold. The STOCH value of 77.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:CBG.

Close Brothers Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
£2.03B12.628.13%8.11%2.63%132.46%
GBIGG
77
Outperform
£3.69B10.8519.85%2.62%6.34%30.64%
76
Outperform
£2.34B11.7140.24%5.92%2.95%9.84%
74
Outperform
£717.31M11.3815.14%2.49%-0.07%34.54%
67
Neutral
$17.01B11.909.70%3.76%11.63%-9.47%
GBCBG
60
Neutral
£580.27M4.53-6.71%3.73%-172.06%
49
Neutral
£114.33M-3.06%15.48%23.67%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:CBG
Close Brothers Group
390.00
-92.00
-19.09%
GB:IGG
IG Group Holdings
1,059.00
260.40
32.61%
GB:PLUS
Plus500
3,274.00
1,175.41
56.01%
GB:TCAP
TP ICap
278.50
81.52
41.38%
GB:CMCX
CMC Markets
249.00
-72.25
-22.49%
GB:PEEL
Peel Hunt Limited
98.00
-38.00
-27.94%

Close Brothers Group Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Close Brothers Group Announces Key Personnel Share Transactions
Neutral
Jul 2, 2025

Close Brothers Group has announced a transaction involving Nazrul Kazi, the Group Head of Internal Audit, who exercised options under the 2023 Retention and Recruitment Share Plan. The transaction involved the exercise of options, a partial sale of shares to cover tax obligations, and the retention of remaining shares. This move is part of the company’s ongoing efforts to retain and recruit key personnel, potentially impacting its operational stability and strategic positioning.

The most recent analyst rating on (GB:CBG) stock is a Buy with a £4.63 price target. To see the full list of analyst forecasts on Close Brothers Group stock, see the GB:CBG Stock Forecast page.

Regulatory Filings and Compliance
Close Brothers Group Updates Share Capital and Voting Rights
Neutral
Jul 1, 2025

Close Brothers Group PLC announced that its total issued listed share capital as of June 30, 2025, consisted of 152,060,290 ordinary shares, with 1,572,747 held in Treasury, resulting in 150,487,543 shares with voting rights. This update is crucial for shareholders to determine their major interest in the company, as per the Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:CBG) stock is a Buy with a £4.63 price target. To see the full list of analyst forecasts on Close Brothers Group stock, see the GB:CBG Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
Close Brothers Group Announces Change in Major Holdings
Neutral
Jun 26, 2025

Close Brothers Group PLC has announced a change in its major holdings due to an in-specie transfer, with Aberdeen Group plc now holding a significant portion of voting rights. This adjustment reflects an increase in the voting rights held by abrdn Holdings Limited and abrdn Investments Limited above the 5% threshold, potentially impacting the company’s governance and strategic decision-making processes.

The most recent analyst rating on (GB:CBG) stock is a Buy with a £4.63 price target. To see the full list of analyst forecasts on Close Brothers Group stock, see the GB:CBG Stock Forecast page.

Other
Kopernik Global Adjusts Stake in Close Brothers Group
Neutral
Jun 24, 2025

Kopernik Global Investors, LLC, based in Tampa, USA, has adjusted its voting rights in Close Brothers Group PLC, reducing its stake from 3.04% to 2.99% as of June 20, 2025. This change in holdings may impact the company’s shareholder dynamics, though the overall effect on operations or strategic direction remains to be seen.

The most recent analyst rating on (GB:CBG) stock is a Buy with a £620.00 price target. To see the full list of analyst forecasts on Close Brothers Group stock, see the GB:CBG Stock Forecast page.

Regulatory Filings and Compliance
Close Brothers Group Sees Change in Major Shareholder Voting Rights
Neutral
Jun 9, 2025

Close Brothers Group PLC has announced a change in the voting rights held by Aberdeen Group plc, which has decreased from 9.87% to 8.52% as of June 6, 2025. This reduction in voting rights reflects a decrease in the shares managed by abrdn Holdings Limited and abrdn Investments Limited, falling below the 5% notifiable threshold due to trading activities. This shift might impact the company’s shareholder dynamics and influence within the market.

The most recent analyst rating on (GB:CBG) stock is a Buy with a £4.63 price target. To see the full list of analyst forecasts on Close Brothers Group stock, see the GB:CBG Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Close Brothers COO Exercises Share Options in Strategic Transaction
Neutral
Jun 6, 2025

Close Brothers Group plc announced a transaction involving Simon Jacobs, the Group Chief Operating Officer, who exercised options under the 2023 Retention and Recruitment Share Plan. The transaction involved the exercise of 23,303 shares, a partial sale of 10,992 shares to cover tax obligations, and the retention of 12,311 shares. This transaction, conducted on the London Stock Exchange, reflects the company’s ongoing efforts to manage executive compensation and align managerial interests with shareholder value.

The most recent analyst rating on (GB:CBG) stock is a Buy with a £385.00 price target. To see the full list of analyst forecasts on Close Brothers Group stock, see the GB:CBG Stock Forecast page.

Business Operations and Strategy
Close Brothers Group Executives Acquire Shares Under Incentive Plan
Positive
Jun 6, 2025

Close Brothers Group plc announced that several managerial personnel acquired shares under the company’s Share Incentive Plan. This transaction, involving key figures such as the Group Head of Human Resources, Group Chief Finance Officer, and Group Chief Risk Officer, reflects ongoing participation in the company’s equity plans, potentially aligning management interests with shareholder value and reinforcing confidence in the company’s future performance.

The most recent analyst rating on (GB:CBG) stock is a Buy with a £385.00 price target. To see the full list of analyst forecasts on Close Brothers Group stock, see the GB:CBG Stock Forecast page.

Regulatory Filings and Compliance
Close Brothers Group Announces Share Capital and Voting Rights Update
Neutral
Jun 2, 2025

Close Brothers Group PLC announced its total issued listed share capital as of May 30, 2025, which includes 152,060,290 ordinary shares. Of these, 1,572,747 shares are held in Treasury, leaving 150,487,543 shares with voting rights available for shareholder calculations under the Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:CBG) stock is a Buy with a £4.63 price target. To see the full list of analyst forecasts on Close Brothers Group stock, see the GB:CBG Stock Forecast page.

Business Operations and Strategy
Close Brothers Group Announces Sharesave Scheme 2025 Options Grant
Positive
May 30, 2025

Close Brothers Group plc has announced the grant of options to employees under its Sharesave Scheme 2025, which includes nine persons discharging managerial responsibilities. This move is part of the company’s ongoing efforts to align employee interests with those of shareholders, potentially enhancing employee retention and motivation. The options, granted on 29 May 2025, cover ordinary shares priced at £2.43 each, and are set for a three-year term, reflecting the company’s commitment to long-term growth and stability.

The most recent analyst rating on (GB:CBG) stock is a Buy with a £5.60 price target. To see the full list of analyst forecasts on Close Brothers Group stock, see the GB:CBG Stock Forecast page.

Business Operations and Strategy
Close Brothers Group Management Acquires Shares Under Incentive Plan
Positive
May 7, 2025

Close Brothers Group plc has announced transactions involving the acquisition of shares under its Share Incentive Plan by key managerial personnel. Rebekah Etherington, Fiona McCarthy, and Robert Sack, holding significant positions within the company, each acquired shares at a price of 330p per share. These transactions, conducted on the London Stock Exchange, reflect the company’s ongoing commitment to align management interests with shareholder value, potentially impacting stakeholder confidence positively.

Regulatory Filings and Compliance
Close Brothers Group Announces Share Capital and Voting Rights Update
Neutral
May 1, 2025

Close Brothers Group PLC announced its total issued listed share capital as of April 30, 2025, which includes 152,060,290 ordinary shares, with 1,572,747 held in Treasury. This leaves 150,487,543 ordinary shares with voting rights, a figure shareholders can use to assess their major interest under regulatory rules.

Business Operations and Strategy
Kopernik Global Investors Acquires Significant Stake in Close Brothers Group
Neutral
Apr 17, 2025

Kopernik Global Investors, LLC, based in Tampa, United States, has acquired a significant voting rights position in Close Brothers Group PLC, crossing the 3% threshold as of April 9, 2025. This acquisition indicates a notable interest from an international investor, which could influence the company’s shareholder dynamics and potentially impact its strategic decisions.

Business Operations and Strategy
Close Brothers Executives Acquire Shares Under Incentive Plan
Positive
Apr 8, 2025

Close Brothers Group plc announced that several key managerial figures, including the Group Head of Human Resources, Group Chief Finance Officer, and Group Chief Risk Officer, have acquired shares under the company’s Share Incentive Plan. This move, involving the purchase of ordinary shares at 262p each, reflects a strategic alignment of interests between the company’s management and its shareholders, potentially boosting stakeholder confidence and reinforcing the company’s market position.

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.Date of analysis: Jul 04, 2025