Close Brothers Group (GB:CBG)
LSE:CBG
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Close Brothers Group
(LSE:CBG)
Select Model
Select Model
Rating:51Neutral
Price Target:
440.00 p
▼(-11.43% 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
Specialist lending and niche focus
Close Brothers’ origination model targets specialist, under-banked niches (motor, premium, asset, property finance). These focused segments reduce direct competition with large retail banks, support differentiated underwriting and pricing, and create durable client relationships that sustain net interest income across cycles.
Negative Factors
Large revenue decline and net loss
A ~42% revenue decline and the swing to a substantial net loss erode retained earnings and reduce internal capital generation. This undermines profitability persistence, constrains reinvestment capacity, and lengthens the timeline to restore return on equity and buffer against future credit stress.
Read all positive and negative factors
Positive Factors
Negative Factors
Specialist lending and niche focus
Close Brothers’ origination model targets specialist, under-banked niches (motor, premium, asset, property finance). These focused segments reduce direct competition with large retail banks, support differentiated underwriting and pricing, and create durable client relationships that sustain net interest income across cycles.
Read all positive factors
Close Brothers Group (CBG) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£674.11M
Dividend YieldN/A
Average Volume (3M)433.51K
Price to Earnings (P/E)―
Beta (1Y)2.41
Revenue Growth-18.61%
EPS Growth48.41%
CountryUK
Employees3,000
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)-0.35
Shares Outstanding150,703,220
10 Day Avg. Volume391,302
30 Day Avg. Volume433,515
Financial Highlights & Ratios
PEG Ratio0.04
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
£551.67Price Target Upside11.04% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.43
Revenue Forecast (FY)£642.19M
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 mainly through (1) net interest income from its specialist lending activities and (2) fees and commissions from wealth management and other financial services.
1) Net interest income (specialist lending): The group originates loan...
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
496.80
Price Trends
436.53
Positive
458.02
Negative
461.81
Negative
Market Momentum
2.27
Positive
49.36
Neutral
43.54
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 453.70, above the 50-day MA of 436.53, and above the 200-day MA of 461.81, indicating a neutral trend. The MACD of 2.27 indicates Positive momentum. The RSI at 49.36 is Neutral, neither overbought nor oversold. The STOCH value of 43.54 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 | £3.17B | 15.22 | 47.78% | 4.70% | 0.05% | 6.54% | |
82 Outperform | £1.04B | 15.85 | 14.91% | 4.65% | -10.92% | -24.05% | |
76 Outperform | £6.04B | 12.51 | 26.63% | 3.62% | ― | ― | |
73 Outperform | £2.20B | 12.28 | 9.39% | 6.35% | 4.73% | 15.14% | |
68 Neutral | £11.84B | 7.46 | 13.48% | 6.78% | -3.55% | 4.97% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
51 Neutral | £674.11M | -22.00 | -9.28% | ― | -18.61% | 48.41% |
* Financial Sector Average
GB:CBG
Close Brothers Group
457.20
138.60
43.50%
GB:CMCX
CMC Markets
430.00
207.19
92.99%
GB:IGG
IG Group Holdings
1,843.00
814.30
79.16%
GB:INVP
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638.00
150.00
30.74%
GB:PLUS
Plus500
4,600.00
1,300.78
39.43%
GB:TCAP
TP ICap
314.40
68.08
27.64%
Close Brothers Group Corporate Events
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...
Regulatory Filings and Compliance
Close Brothers Directors and Associates Boost Holdings with Share Purchases
Positive
Apr 14, 2026
Close Brothers Group has disclosed share purchases by board-linked parties, underscoring continued insider investment in the merchant banking group. Non-executive director Kari Hale acquired 5,017 ordinary shares at £4.06 each on 13 April 202...
Other
Close Brothers Directors Boost Holdings With Fresh Share Purchases
Positive
Apr 9, 2026
Close Brothers Group has disclosed share purchases by several non-executive directors and a connected person, indicating fresh insider investment in the company. Non-executive director Sally Williams acquired 6,914 ordinary shares on 8 April 2026 ...
Regulatory Filings and Compliance
Close Brothers Executives Acquire Shares Under Incentive Plan
Positive
Apr 8, 2026
Close Brothers Group has disclosed a series of routine share purchases by senior executives under its Share Incentive Plan, in line with market abuse regulations. Group Head of Human Resources Rebekah Etherington, Group Chief Finance Officer Fiona...
Business Operations and StrategyFinancial DisclosuresLegal ProceedingsRegulatory Filings and Compliance
Close Brothers says FCA motor finance redress hit manageable at £320m
Negative
Apr 8, 2026
Close Brothers Group has estimated that the Financial Conduct Authority’s new motor finance consumer redress scheme would result in a provision of about £320 million, broadly in line with its existing £294 million IAS 37 provision....
Regulatory Filings and Compliance
Close Brothers Updates Share Capital and Voting Rights Count
Neutral
Apr 1, 2026
Close Brothers Group has reported that, as of 31 March 2026, its total issued listed share capital stands at 152,060,290 ordinary shares, of which 1,513,427 are held in treasury. This leaves 150,546,863 ordinary shares currently carrying voting ri...
Business Operations and StrategyRegulatory Filings and Compliance
Close Brothers reviews impact of FCA motor finance redress scheme
Negative
Mar 30, 2026
Close Brothers Group and its finance arm have begun assessing the potential impact of the Financial Conduct Authority’s newly published Motor Finance Consumer Redress Scheme on their business. The group said it will update the market when ap...
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 ...
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.