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Close Brothers Group
(LSE:CBG)
Select Model
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Rating:47Neutral
Price Target:
429.00 p
▲(1.95% Upside)
Action:Reiterated
Date:08/06/26
The score is primarily held back by weakened financial performance (sharp revenue decline and a swing to a net loss) alongside higher leverage and reduced equity, which raises balance-sheet risk. Technicals are moderately supportive with positive MACD and a neutral-to-positive RSI, but the price remains below the 200-day moving average, limiting the longer-term trend signal. Valuation is also a headwind because the negative P/E indicates negative earnings and dividend yield data is unavailable.
Positive Factors
Cash Flow Recovery
The strong FY2025 cash-flow rebound demonstrates that the lending business can generate substantial cash when funding and portfolio conditions improve, supporting liquidity and ongoing operations despite recent earnings pressure.
Negative Factors
Revenue and Earnings Deterioration
The sharp revenue contraction and move into a sizable loss weaken internal capital generation and demonstrate that earnings remain sensitive to portfolio conditions, funding pressures, and below-the-line costs.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Flow Recovery
The strong FY2025 cash-flow rebound demonstrates that the lending business can generate substantial cash when funding and portfolio conditions improve, supporting liquidity and ongoing operations despite recent earnings pressure.
Read all positive factors
Close Brothers Group (CBG) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£644.87M
Dividend YieldN/A
Average Volume (3M)433.51K
Price to Earnings (P/E)―
Beta (1Y)2.29
Revenue Growth-18.61%
EPS Growth48.41%
CountryUK
Employees2,600
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)-0.35
Shares Outstanding150,713,490
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
£470.00Price Target Upside11.69% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.57
Revenue Forecast (FY)£659.67M
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 Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | £2.63B | 12.83 | 48.99% | 4.31% | 3.14% | 4.67% | |
72 Outperform | £2.33B | 12.69 | 9.51% | 4.80% | 3.88% | 11.86% | |
69 Neutral | £2.05B | 27.15 | 16.86% | 1.91% | 16.10% | 21.35% | |
69 Neutral | £4.56B | 12.84 | 19.99% | 3.60% | ― | ― | |
68 Neutral | £12.39B | 8.62 | 13.48% | 5.91% | -3.55% | 5.64% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
47 Neutral | £644.87M | -12.33 | -2.03% | ― | -18.61% | 48.41% |
* Financial Sector Average
GB:CBG
Close Brothers Group
424.60
-60.80
-12.53%
GB:CMCX
CMC Markets
707.00
484.38
217.59%
GB:IGG
IG Group Holdings
1,385.00
313.57
29.27%
GB:INVP
Investec
666.00
152.97
29.82%
GB:PLUS
Plus500
3,804.00
846.54
28.62%
GB:TCAP
TP ICap
330.00
64.37
24.23%
Close Brothers Group Corporate Events
Regulatory Filings and Compliance
Close Brothers Executives Acquire Shares Under Incentive Plan
Neutral
Aug 6, 2026
Close Brothers Group plc has disclosed a series of share acquisitions by senior executives under its Share Incentive Plan. On 5 August 2026, ordinary shares of 25p each were purchased on the London Stock Exchange at 434p per share for several pers...
Regulatory Filings and Compliance
Close Brothers updates shareholders on total voting rights
Neutral
Aug 3, 2026
Close Brothers Group plc has reported that as at 31 July 2026 its total issued listed share capital comprised 152,060,290 ordinary shares of 25 pence each. Of this total, 1,345,294 ordinary shares are held in treasury, leaving 150,714,996 ordinary...
Regulatory Filings and Compliance
Close Brothers CFO Exercises Share Options and Sells Stock to Cover Tax
Neutral
Aug 3, 2026
Close Brothers Group has disclosed a transaction involving its Group Chief Finance Officer, Fiona McCarthy, who exercised options over 3,441 ordinary shares under the 2023 Deferred Annual Bonus plan. As part of the transaction on 31 July 2026, she...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Close Brothers Sets New Chair and Senior Independent Director in Board Succession Plan
Positive
Jul 31, 2026
Close Brothers Group has announced a planned leadership transition, with long-serving chairman Mike Biggs stepping down after nine years at the conclusion of the November AGM. Senior Independent Director Mark Pain, who brings more than three decad...
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....
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.