Close Brothers reports £122M loss due to motor finance scandal, rental losses, and exiting vehicle hire business.

Close Brothers posted a £122.4 million pre-tax operating loss for the year ended July 31, 2025, reversing a prior year profit, due to £165 million in provisions for a motor finance scandal, £47.5 million in rental business losses, and a £30 million write-down on its vehicle hire division, which lost £43.4 million. The company set aside £33 million for customer compensation and is exiting the vehicle hire business over three to five years, cutting costs to save £45 million annually. A Supreme Court ruling reduced potential compensation liability, while the FCA considers a broader redress scheme. CEO Mike Morgan said the firm is resetting for future growth, though profitability and dividend returns remain uncertain.