Business
Final Results
Close Brothers Group PLC reported preliminary results for the year ended July 31, 2025, with an adjusted operating profit of £144 million. The company's CET1 capital ratio reached 13.8%, increasing to approximately 14.3% pro-forma after the Winterflood sale. A £165 million provision for motor finance commissions remained unchanged. The company delivered £25 million in annualised cost savings and plans to achieve at least £20 million more annually for the next three years. The group reported a statutory operating loss before tax of £122.4 million, while profit from discontinued operations, net of tax, was £49.2 million. The loan book reduced by 4% to £9.5 billion. No final dividend will be paid for the 2025 financial year. Disclaimer*
About this update from Close Brothers Group Plc
[{"type":"text","content":"\n\n\nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION\n\n\nPreliminary Results for the year ended 31 July 2025\n\n\n30 September 2025\n\n\nMike Morgan, Chief Executive, said:\n\n\n\"Our performance in the 2025 financial year reflects the actions we have taken to strengthen our capital position and simplify the business. We delivered adjusted operating profit of £144 million, highlighting the resilience of our underlying businesses. We achieved a CET1 capital ratio of 13.8% or c.14.3% on a pro-forma basis reflecting the sale of Winterflood, despite the impact of the £165 million provision relating to motor finance commissions, which remains unchanged. We welcomed the positive outcome of the Supreme Court judgment in August 2025, which provided much-needed clarity to the industry, and now await the outcome of the FCA consultation on the design and scope of an industry-wide redress scheme.\n\n\nOver the last year, we have taken decisive action to address legacy issues and reposition the business for growth. We have sold Close Brothers Asset Management, Winterflood and the Brewery Rentals business, and we have repositioned our Premium Finance business to focus on commercial lines. In addition, we have now successfully settled the long-standing litigation issued by Novitas. Today, we are announcing the next steps on this path by exiting the Vehicle Hire business. Whilst some of these actions have an upfront financial impact on the group, they provide the foundation for the next stage of our journey: driving efficiency and capturing growth.\n\n\nIn terms of efficiency, we have delivered £25 million of annualised cost savings and will deliver at least c.£20 million of additional annualised savings per annum in each of the next three years. As we emerge as a simpler, more focused bank, we see significant growth opportunities across our chosen markets. We will use our strong market positions, reputation and specialist expertise to win in the segments where we can truly differentiate and become the specialist lender of choice for SMEs in the UK and Ireland.\n\n\nThe task now is to accelerate from here. I am confident we are on the right path and that we will return this business to double-digit returns. I look forward to sharing a full update on our pathway once there is clarity on the outcome of the FCA's consultation and its impact on the...