Close Brothers Group (GB:CBG)
LSE:CBG
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Close Brothers Group
(LSE:CBG)
Select Model
Select Model
Rating:46Neutral
Price Target:
387.00 p
▼(-1.98% Downside)
Action:ReiteratedDate:03/17/26
The score is held back primarily by deteriorating profitability (revenue drop and net loss) and higher leverage, alongside bearish technicals with broad downtrend signals. A rebound in cash flow and a low P/E provide some offset, but not enough to outweigh the fundamental and momentum risks.
Positive Factors
Specialist lending model
Close Brothers’ focus on specialist lending and adjacent wealth and securities businesses creates durable revenue diversification and deep sector expertise. Niche lending and distribution partnerships support persistently higher lending spreads and client stickiness versus commoditised mass-market lenders, helping sustain margins and origination pipelines over the medium term.
Negative Factors
Revenue collapse & net loss
A ~42% revenue decline and a FY2025 net loss represent a significant deterioration in top-line and bottom-line performance. Such structural setbacks reduce internal capital generation, constrain dividend and reinvestment capacity, and can force tighter underwriting or asset sales to restore profitability, posing a durable headwind while recovery occurs.
Read all positive and negative factors
Positive Factors
Negative Factors
Specialist lending model
Close Brothers’ focus on specialist lending and adjacent wealth and securities businesses creates durable revenue diversification and deep sector expertise. Niche lending and distribution partnerships support persistently higher lending spreads and client stickiness versus commoditised mass-market lenders, helping sustain margins and origination pipelines over the medium term.
Read all positive factors
Close Brothers Group (CBG) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£557.29M
Dividend YieldN/A
Average Volume (3M)433.51K
Price to Earnings (P/E)―
Beta (1Y)2.34
Revenue Growth-15.79%
EPS Growth-211.91%
CountryUK
Employees3,000
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)0.27
Shares Outstanding150,546,630
10 Day Avg. Volume391,302
30 Day Avg. Volume433,515
Financial Highlights & Ratios
PEG Ratio0.04
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
£583.33Price Target Upside47.75% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.43
Revenue Forecast (FY)£643.75M
Close Brothers Group Business Overview & Revenue Model
Company Description
Close Brothers Group plc, a merchant banking company, provides financial services to small businesses and individuals in the United Kingdom. It operates through five segments: Commercial, Retail, Property, Asset Management, and Securities. The com...
How the Company Makes Money
CBG makes money primarily by earning net interest income from its Specialist Lending activities. It funds itself through a mix of customer and brokered deposits and other wholesale funding, and then lends to customers across targeted specialist ma...
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 | 0.00 | 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 | -1.17B | -155.20M | 513.40M | 736.80M | 391.50M | 681.80M |
Close Brothers Group Technical Analysis
Negative
394.80
Price Trends
465.93
Negative
465.17
Negative
456.71
Negative
Market Momentum
-30.22
Negative
43.21
Neutral
58.40
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 394.8 is below the 20-day moving average (MA) of 406.34, below the 50-day MA of 465.93, and below the 200-day MA of 456.71, indicating a bearish trend. The MACD of -30.22 indicates Negative momentum. The RSI at 43.21 is Neutral, neither overbought nor oversold. The STOCH value of 58.40 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 | £2.84B | 12.16 | 47.78% | 4.70% | 1.09% | 4.88% | |
80 Outperform | £937.81M | 4.51 | 14.91% | 4.65% | -10.92% | -24.05% | |
78 Outperform | £4.76B | 10.55 | 20.39% | 3.62% | 9.46% | 32.24% | |
73 Outperform | £1.88B | 10.28 | 9.39% | 6.35% | 5.77% | 81.14% | |
68 Neutral | £10.46B | 3.32 | 12.75% | 6.78% | -2.34% | 2.55% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
46 Neutral | £557.29M | -2.93 | -9.28% | ― | -15.79% | -211.91% |
* Financial Sector Average
GB:CBG
Close Brothers Group
373.40
73.60
24.55%
GB:CMCX
CMC Markets
336.00
133.10
65.60%
GB:IGG
IG Group Holdings
1,414.00
487.28
52.58%
GB:INVP
Investec
570.50
116.89
25.77%
GB:PLUS
Plus500
4,056.00
1,425.02
54.16%
GB:TCAP
TP ICap
266.00
15.52
6.20%
Close Brothers Group Corporate Events
Business Operations and Strategy
Close Brothers Transfers Treasury Shares for Employee Plans
Neutral
Mar 17, 2026
Close Brothers Group has transferred 1,951 ordinary shares from treasury to participants in its employee share plans, at prices ranging between 243 pence and 371 pence. Following this transaction, the company holds 1,513,659 ordinary shares in tre...
Business Operations and StrategyFinancial Disclosures
Close Brothers narrows loss, tightens costs as loan book shrinks
Negative
Mar 17, 2026
Close Brothers Group reported a resilient but weaker first-half performance for the six months to 31 January 2026, as adjusted operating profit from continuing operations fell 19% to £65.2 million and return on average tangible equity decline...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Close Brothers Rejects Viceroy Report Ahead of Half-Year Results
Neutral
Mar 16, 2026
Close Brothers Group has rejected criticism from short-seller Viceroy Research over its accounting for potential liabilities tied to motor finance commissions and the impact on its capital position. The lender said its provisioning approach compli...
Regulatory Filings and Compliance
Close Brothers executives add to holdings via share incentive plan
Positive
Mar 6, 2026
Close Brothers Group has disclosed routine share purchases by several senior executives under its Share Incentive Plan, as required under the Market Abuse Regulation. Group Head of Human Resources Rebekah Etherington, Group Chief Finance Officer F...
Regulatory Filings and Compliance
Close Brothers Updates Market on Share Capital and Voting Rights
Neutral
Mar 2, 2026
Close Brothers Group has updated the market on its share capital and voting rights position as at 28 February 2026, confirming it has 152,060,290 issued ordinary shares of 25p each, of which 1,515,610 are held in treasury. This leaves 150,544,680 ...
Business Operations and Strategy
Close Brothers Uses Treasury Shares for Employee Plans
Neutral
Feb 23, 2026
Close Brothers Group plc has transferred 2,563 ordinary shares from treasury to participants in its employee share plans, at transfer prices ranging between 243 pence and 371 pence per share. Following this transaction, the company holds 1,515,610...
Business Operations and Strategy
Close Brothers Transfers Treasury Shares for Employee Plans
Neutral
Feb 16, 2026
Close Brothers Group has transferred 4,682 ordinary shares from treasury to participants in its employee share plans, at prices ranging from 243 pence to 371 pence. Following this transaction, the company now holds 1,518,173 ordinary shares in tre...
Regulatory Filings and Compliance
Close Brothers Executives Add Shares via Incentive Plan
Neutral
Feb 9, 2026
Close Brothers Group has disclosed a series of small share purchases by senior executives under its Share Incentive Plan. On 5 February 2026, Group Head of Human Resources Rebekah Etherington, Group Chief Finance Officer Fiona McCarthy, Group Chie...
Business Operations and Strategy
Close Brothers Transfers Treasury Shares for Employee Incentive Plans
Neutral
Feb 9, 2026
Close Brothers Group has transferred 172 ordinary shares from treasury to participants in its employee share plans at a price of 243 pence per share. After this transaction, the company holds 1,522,855 ordinary shares in treasury and has 150,537,4...
Business Operations and StrategyPrivate Placements and Financing
Close Brothers retires bulk of £200m Tier 2 notes via cash tender
Positive
Feb 3, 2026
Close Brothers Group has completed a cash tender offer for its £200 million 2.00% Subordinated Tier 2 Notes, originally announced on 26 January 2026. By the 2 February deadline, noteholders had tendered £191.38 million in aggregate nomin...
Business Operations and Strategy
Close Brothers Transfers Treasury Shares for Employee Incentive Plans
Neutral
Feb 2, 2026
Close Brothers Group has transferred 172 ordinary shares from treasury to participants in its employee share plans at a price of 243 pence per share. Following this small transaction, the group holds 1,523,027 ordinary shares in treasury and has 1...
Regulatory Filings and Compliance
Close Brothers Updates Share Capital and Voting Rights Figures
Neutral
Feb 2, 2026
Close Brothers Group has reported that as of 30 January 2026 its total issued listed share capital stands at 152,060,290 ordinary shares, of which 1,523,199 are held in Treasury, leaving 150,537,091 ordinary shares in issue with voting rights. The...
Business Operations and StrategyPrivate Placements and Financing
Close Brothers Issues £250m Tier 2 Notes to Bolster Capital Base
Positive
Jan 30, 2026
Close Brothers Group plc has published admission particulars for the issuance of £250 million 6.125% Subordinated Tier 2 Notes, marking a new capital markets transaction for the London-listed merchant bank. The subordinated notes, which quali...
Business Operations and Strategy
Close Brothers Allocates Treasury Shares to Employee Incentive Plans
Neutral
Jan 26, 2026
Close Brothers Group has transferred 999 ordinary shares from treasury to participants in its employee share plans at a price of 371 pence per share. Following this allocation, the group now holds 1,523,199 ordinary shares in treasury and has 150,...
Business Operations and StrategyPrivate Placements and Financing
Close Brothers Launches Tender Offer for £200m Tier 2 Notes as Part of Capital Management Drive
Positive
Jan 26, 2026
Close Brothers Group plc has launched a cash tender offer for any and all of its £200 million 2.00% Subordinated Tier 2 Notes due to reset in September 2026, offering a purchase price of 99.150% of nominal value plus accrued interest. The mov...
Business Operations and Strategy
Close Brothers Transfers Treasury Shares Under Employee Plans
Neutral
Jan 19, 2026
Close Brothers Group has transferred 1,440 ordinary shares from treasury to participants in its employee share plans at a transfer price of 371 pence per share. Following this transaction, the company now holds 1,524,198 ordinary shares in treasur...
Regulatory Filings and Compliance
Close Brothers CEO Michael Morgan Executes Bed and ISA Share Transaction
Neutral
Jan 12, 2026
Close Brothers Group has disclosed that its Group Chief Executive, Michael Morgan, has carried out a “Bed and ISA” transaction involving 2,841 ordinary shares in the company. Morgan sold and immediately repurchased the same number of s...
Business Operations and Strategy
Close Brothers Transfers Treasury Shares to Employee Plans
Neutral
Jan 12, 2026
Close Brothers Group has transferred 4,180 ordinary shares from treasury to participants in its employee share plans, at transfer prices ranging between 243 pence and 371 pence per share. Following this transaction, the group now holds 1,525,638 o...
Business Operations and Strategy
Close Brothers Issues Treasury Shares to Employee Plan Participants
Neutral
Jan 7, 2026
Close Brothers Group transferred 973 ordinary shares from treasury to participants in its employee share plans on 7 January 2026, at prices ranging between 243 pence and 371 pence per share. Following this transaction, the company now holds 1,529,...
Other
Close Brothers Executives Acquire Shares Under Group Incentive Plan
Neutral
Jan 6, 2026
Close Brothers Group plc has disclosed that three senior executives – Group Head of Human Resources Rebekah Etherington, Group Chief Finance Officer Fiona McCarthy and Group Chief Risk Officer Robert Sack – have acquired small holdings...
Regulatory Filings and Compliance
Close Brothers Confirms Updated Share Capital and Voting Rights
Neutral
Jan 5, 2026
Close Brothers Group has confirmed that, as of 31 December 2025, its total issued listed share capital comprised 152,060,290 ordinary shares, of which 1,530,791 are held in treasury, leaving 150,529,499 ordinary shares carrying voting rights. The ...
Regulatory Filings and Compliance
Close Brothers CEO Exercises Share Options and Sells Portion of Holdings
Neutral
Dec 29, 2025
Close Brothers Group plc has disclosed a transaction by its Group Chief Executive, Michael Morgan, involving the exercise of 5,379 nil-cost options over ordinary shares granted under the company’s 2022 DAB scheme. Following the option exerci...
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.