olivLaw · European equity research
Castelnau Group Limited CGL.L
United Kingdom · London Stock Exchange · Vertical: Listed companies from United Kingdom
Castelnau Group is a UK investment company holding a concentrated portfolio of unlisted private assets, with its main holding Valderrama (Dignity Plc) making up most of its net assets. In 2025 the group reported a net asset value total return that outperformed its share price but still trailed the FTSE All-Share index, while proceeds from the early redemption of Dignity notes strengthened its balance sheet.
At the close of 05 Nov 2026, Castelnau Group Limited (CGL.L) stock was 0.91 GBP (+0.00% on the day), with market capitalisation 302.4 m GBP, P/E 6.6 on diluted EPS of 0.14 GBP over the last 12 months, beta 0.04, 52-week range 0.78–0.98 GBP.
Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 53.3
- neutral
- Bollinger (20, 2)
- 0.88 – 0.93
- in the upper half of the band · %B 0.59 · band width 4.9%
- SMA 50 / 200
- 0.90 / 0.88
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 0.00 / 0.00
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | EURO STOXX 50 | vs EURO STOXX 50 | Vertical median | |
|---|---|---|---|---|
| 1 month | +2.2% | −0.6% | +2.9 pp | — |
| 3 months | +2.8% | −4.2% | +7.0 pp | — |
| 6 months | unavailable | +4.3% | unavailable | — |
| Year to date | unavailable | +7.5% | unavailable | — |
| 1 year | +17.4% | +9.9% | +7.5 pp | +5.8% |
| 3 years | +23.0% | +49.8% | −26.9 pp | +26.3% |
| 5 years | −16.5% | +42.8% | −59.3 pp | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 50 percentile of its own 2-quarter history (min 3.7, median 5.2, max 6.8; quarters with earnings only).
Fiscal years
| Fiscal year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | 2.0 m | 2.3 m | 3.3 m |
| Revenue YoY | unavailable | +13.1% | +47.2% |
| Net income | -7.8 m | 81.9 m | 45.9 m |
| Net income YoY | unavailable | unavailable | −44.0% |
| Diluted EPS | -0.03 | 0.26 | 0.14 |
| Diluted EPS YoY | unavailable | unavailable | −46.1% |
| net % | -390.3% | 3,637.4% | 1,383.9% |
| Free cash flow | unavailable | -3.8 m | -7.4 m |
Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 491.2 k GBP
- Financial debt
- 81.3 m GBP
- Net debt
- 80.8 m GBP
- Equity
- 373.7 m GBP
- Total assets
- 478.7 m GBP
- Debt / equity
- 0.22x
- Current ratio
- 0.99x
- ROE
- 13.3%
- ROA
- 10.5%
- FCF margin
- -222.7%
Financial statements (source on every figure)
Revenue and net income (GBP)
Margins
Income statement · GBP
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Revenue | 2.0 m | 2.3 m | 3.3 m | esef· 12 May 2026verified |
| Interest expense | 10.7 m | 7.5 m | 7.9 m | esef· 12 May 2026verified |
| Pre-tax income | -7.8 m | 81.9 m | 45.9 m | esef· 12 May 2026verified |
| Income tax | 3.1 k | 0 | 0 | esef· 12 May 2026verified |
| Net income | -7.8 m | 81.9 m | 45.9 m | esef· 12 May 2026verified |
| Diluted EPS | -0.03 | 0.26 | 0.14 | esef· 12 May 2026verified |
Balance sheet · GBP
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Cash | 131.0 k | 150.4 k | 491.2 k | esef· 12 May 2026verified |
| Receivables | 261.2 k | 866.0 k | 2.6 m | esef· 12 May 2026verified |
| Current assets | 7.7 m | 17.5 m | 22.7 m | esef· 12 May 2026verified |
| Total assets | 289.9 m | 398.9 m | 478.7 m | esef· 12 May 2026verified |
| Short-term debt | 47.7 m | 65.6 m | 0 | esef· 12 May 2026verified |
| Long-term debt | — | 0 | 81.3 m | esef· 12 May 2026verified |
| Current liabilities | 58.7 m | 81.6 m | 22.9 m | esef· 12 May 2026verified |
| Total liabilities | 58.7 m | 81.6 m | 105.0 m | esef· 12 May 2026verified |
| Equity | 231.3 m | 317.2 m | 373.7 m | esef· 12 May 2026verified |
| Shares outstanding at year end | 274.7 m | 320.0 m | 332.3 m | esef· 12 May 2026derived |
Cash flow · GBP
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Operating cash flow | -2.4 m | -3.8 m | -7.4 m | esef· 12 May 2026verified |
| Capex | — | 0 | 4.5 k | esef· 12 May 2026verified |
| Free cash flow | — | -3.8 m ≈ | -7.4 m ≈ | esef· 12 May 2026derived |
| Investing cash flow | -151.2 m | -14.0 m | -7.2 m | esef· 12 May 2026verified |
| Financing cash flow | 146.1 m | 17.8 m | 14.9 m | esef· 12 May 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- indicators available: 5 of at least 6
- score weight coverage: 35.4% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 302.4 m GBP
Key indicators
Coverage and freshness
Score by group
35% · Insufficient data
Estimated value range
unavailable — no valuation assumptions for the reporting currency
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
Assumptions (illustrative, editorial)
- Risk-free rate
- 6.5%
- Equity risk premium
- 6.0%
- Beta (default)
- 1.00
- Cost of equity
- 12.5%
- Terminal growth
- 3.0%
Factor scorecard
Insufficient data
Minimum-evidence gate: indicators available: 5 of at least 6; score weight coverage: 35.4% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 1,383.9% | 100 (vs peers) | 18% |
| FCF conversion · Quality | -16.1% | 0 (on a fixed band) | 18% |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 1.0x | 16 (on a fixed band) | 12% |
| P/E (TTM) · Valuation | 6.6x | 89 (vs peers) | 29% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | -2.4% | 0 (on a fixed band) | 24% |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial16/100 · 1/3 factors with a value
- Growth· partialunavailable · 0/2 factors with a value
- Quality50/100 · 2/3 factors with a value
- Returns· partialunavailable · 0/2 factors with a value
- Valuation49/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
CASTELNAU GROUP LIMITED (CGL.L). Latest full fiscal year: 2025; data up to 2025-12-31.
Figures computed from the financial statements: revenue 3.3 m GBP in 2025; YoY growth 47.2%; net margin 1,383.9%; ROE 13.3%.
The estimated value range is 1.56–2.40 GBP per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 1.99 GBP, the price of 0.91 GBP leaves a potential of 118.9% (value / price − 1) and a margin of safety of 54.3% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (indicators available: 5 of at least 6; score weight coverage: 35.4% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Net margin: 1,383.9%
- P/E (TTM): 6.6x
- The price is below the estimated value range
What contradicts it
- FCF conversion: -16.1%
- Current ratio: 1.0x
- FCF yield: -2.4%
Not assessed (insufficient data or a ratio without meaning): ROIC, Revenue CAGR 3Y, EPS CAGR 3Y, Net debt / EBITDA, Interest coverage, EV/EBITDA, Shareholder yield (distributions), Payout ratio (FCF).
Versus the vertical median
Listed companies from United Kingdom · same country · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| BATS.LBritish American Tobacco P.L.C. | 104.3 bn | 13.5 | 16.5% | 30.3% | −1.0% | +7% / +88% |
| ABF.LAssociated British Foods PLC | 14.7 bn | 14.3 | 9.2% | 5.3% | −3.1% | −5% / −15% |
| 0EV1.LCarnival PLC | 5.5 bn | 4.1 | 46.7% | 13.4% | +6.4% | unavailable / unavailable |
| BAB.LBabcock International Group PLC | 5.1 bn | 24.7 | 34.7% | 4.1% | +7.2% | −10% / +158% |
| AUTO.LAutotrader Group PLC | 4.8 bn | 16.4 | 60.2% | 47.1% | +3.9% | −13% / −23% |
| BBY.LBalfour Beatty PLC | 4.2 bn | 16.3 | 23.2% | 2.8% | +15.2% | +20% / +160% |
| ABDN.LAberdeen Group PLC | 4.1 bn | 10.8 | 8.0% | 28.9% | −2.1% | +11% / +41% |
| BKG.LThe Berkeley Group Holdings PLC | 3.6 bn | 11.3 | 8.8% | 13.4% | −4.2% | −0% / −22% |
| BME.LB&M European Value Retail PLC | 2.9 bn | 17.4 | 21.2% | 2.8% | +3.7% | +68% / −51% |
| AJB.LAj Bell PLC | 2.4 bn | 22.8 | 49.9% | 33.1% | +18.0% | +8% / +128% |
| ASHM.LAshmore Group PLC | 1.4 bn | 13.9 | 13.1% | 71.6% | −0.1% | +28% / +18% |
| BCG.LBaltic Classifieds Group PLC | 1.2 bn | 23.2 | 15.8% | 57.6% | +6.9% | −99% / −99% |
| APN.LApplied Nutrition PLC | 763.6 m | 36.2 | 41.2% | 19.7% | +24.2% | +71% / unavailable |
| BAG.LA.G. Barr P.L.C. | 671.9 m | 14.4 | 14.4% | 10.8% | +4.0% | −7% / +26% |
| ASC.LAsos PLC | 494.5 m | — | -81.3% | -12.0% | −14.7% | +71% / +8% |
| ALFA.LAlfa Financial Software Holdings PLC | 486.8 m | 16.3 | 61.5% | 23.8% | +15.3% | −28% / +10% |
| AML.LAston Martin Lagonda Global Holdings PLC | 344.3 m | — | -93.4% | -39.2% | −20.6% | −45% / −85% |
| CGL.LCastelnau Group Limited | 302.4 m | 6.6 | 13.3% | 1,383.9% | +47.2% | −1% / +27% |
| APTD.LAptitude Software Group PLC | 111.3 m | 28.5 | 7.2% | 6.2% | −7.3% | −30% / −23% |
| AMGO.LAmigo Holdings PLC | 9.9 m | — | — | — | −81.9% | +325% / +844% |
| ASBE.LAssociated British Engineering PLC | 605.3 k | — | -19.1% | — | unavailable | unavailable / unavailable |
| AMIF.LAmicorp Fs (uk) PLC | 221.6 k | 0.1 | 27.5% | 9.1% | +8.1% | unavailable / unavailable |
| AAF.LAirtel Africa PLC | — | — | 24.1% | 10.6% | +29.5% | −7% / +164% |
| AAL.LAnglo American PLC | — | — | -19.3% | -20.2% | +4.5% | +30% / +76% |
| ACG.LAcg Metals Limited | — | — | -80.3% | -32.0% | +134.8% | +60% / +63% |
1- and 3-year price returns: for CGL.L from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (GBP)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 0.59 Total return -35% · Per year -35% | 1.05 Total return 15% · Per year 15% | 1.57 Total return 73% · Per year 73% |
| 3 years | 0.71 Total return -22% · Per year -8% | 1.38 Total return 52% · Per year 15% | 2.26 Total return 148% · Per year 35% |
| 5 years | 0.84 Total return -8% · Per year -2% | 1.83 Total return 101% · Per year 15% | 3.26 Total return 258% · Per year 29% |
- Exit P/E± 0.35
- Net margin± 0.24
- Annual revenue growth± 0.18
- Annual dilution± 0.02
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Castelnau Group is a UK investment company holding a concentrated portfolio of unlisted private assets, with its main holding Valderrama (Dignity Plc) making up most of its net assets. In 2025 the group reported a net asset value total return that outperformed its share price but still trailed the FTSE All-Share index, while proceeds from the early redemption of Dignity notes strengthened its balance sheet.
SWOT
Strengths
- Concentration in one holding with cash-generative operations and a substantial reduction in debt gives the group a more stable financial base than in earlier years.
- The decentralised structure and strengthened leadership teams at key holdings support disciplined capital allocation.
- The integration of Farewill and the focus on digital offerings could widen the service range and increase revenue per customer.
Weaknesses
- Heavy reliance on a single holding exposes the whole portfolio to the performance of Dignity.
- Level 3 valuations are subjective and reviewed quarterly, which makes the reported net asset value hard to verify from outside.
- The share price lagged the benchmark index by a wide margin in 2025, and several smaller holdings fell sharply.
Opportunities
- If exits from less suitable holdings are completed, the group could redirect capital into cash-generative investments.
- Recovery of assets linked to failed funeral plans could bring additional sums over time.
- Using AI across the group could reduce costs and improve operational efficiency.
Threats
- The competition authority investigation into crematoria reviews could damage Dignity's reputation.
- Geopolitical tensions could raise logistics costs and disrupt supply chains for holdings that import products.
- Failing to realise estimated value on a sale of an illiquid holding could reduce net asset value.
Risks
- Portfolio concentrationhigh
The Dignity holding makes up most of net assets, so a major problem at this company would have a disproportionate effect on the whole group.
- Difficulty of asset valuationhigh
Unlisted holdings are hard to value, and reported values rest on internal assumptions and external reports, which could lead to later adjustments.
- Investment liquiditymedium
Private assets are highly illiquid, and selling them on favourable terms is not assured, which could limit portfolio flexibility.
- Interest rate exposuremedium
Loans accrue interest at rates linked to SONIA, so rising rates could increase the group's financing costs.
- Regulatory and reputational riskmedium
Regulatory investigations and any loss of investment trust status could damage reputation and access to capital.
Investment thesis
What would need to be true (bull case)
- Reducing Dignity's debt and strengthening its balance sheet could allow cash distributions and support growth in net asset value in coming years.
- Integrating Farewill and launching direct cremation products could open new revenue streams for the main holding.
- If the shift toward cash-generative assets succeeds, the portfolio could become more balanced and less dependent on one company.
What would break the thesis
- The share price return in 2025 was close to flat and trailed the benchmark by a wide margin, which could discourage investors.
- Extreme concentration in one holding and hard-to-verify valuations leave considerable room for unfavourable revisions.
- Regulatory investigations and supply chain risks could hit the results of several holdings at the same time.
What to watch
- Outcome of the Competition and Markets Authority investigation into Dignity2026
- Recovery of the remaining sums under the 15.4 million pound guarantee for funeral plan rescue assets2026
- Completion of the Ocula equity fundraise2026
- Trajectory of Dignity's EBITDA margin after one-off and investment costs in 2025next 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Castelnau Group Ltd is an investment company seeking to grow shareholder capital through a portfolio of private assets managed by an external investment manager, Phoenix Asset Management Partners. The stated strategy has shifted from turning around struggling businesses toward owning cash-generative investments that can benefit from the group's capabilities and network. Net assets at 31 December 2025 stood at 373.7 million pounds sterling 1.
The group runs a decentralised model in which each holding remains responsible for its own operations, while central management focuses on capital allocation, financing and oversight. All investments are classified as Level 3 in fair value terms, meaning valuations depend on internal assumptions and have been reviewed quarterly rather than monthly since June 2025 1.
The capital structure changed in 2025: a 60 million pound loan from Phoenix UK Fund was replaced by a 65 million pound revolving facility from Shawbrook Bank, with the stated aim of reducing interest costs and normalising the balance sheet 1. No dividend was declared for 2025 1.
Segments
Valderrama (Dignity Plc), specialised consumer services
This is the largest holding, representing 85.2% of the portfolio at 31 December 2025 and about 107.9% of net assets. In 2025 Dignity integrated Farewill, launched the Simplicity brand for direct cremation and deployed a new operating system licensed from Firehawk 1.
Market context
The group operates only in the UK market, so its large Dignity stake exposes it directly to the funeral and cremation sector, a segment with relatively steady demand. The FTSE All-Share index returned 24% in 2025, well above the 0.3% share price total return of Castelnau 1.
The market for unlisted investments is increasingly regulated, and demand for funeral plans is shaped by the FCA framework following the failure of some plan providers. That history explains the guarantee Castelnau gave for rescue plan assets and remains an ongoing risk factor 1.
Trends
- Digital and AI adoptiontailwind
Companies in the portfolio have adopted new operating systems and automation, and Ocula has applied AI-enabled workflows. If these investments reduce costs and raise efficiency, holding margins could benefit over the medium term.
- Rising demand for direct cremationtailwind
The direct cremation segment is growing and Dignity launched a dedicated product in Q4 2025. If this trend persists, it could support revenue at a holding that makes up most of the portfolio.
- Geopolitical pressure on logistics costsheadwind
Conflicts in Ukraine and the Middle East have disrupted trade routes, raising logistics costs and delivery times. Hornby, which relies on imported products, could feel this pressure.
- Regulatory scrutiny in the funeral sectormixed
In March 2026 the UK Competition and Markets Authority opened an investigation into Dignity's compliance with consumer protection law. No finding has been made, but the outcome could influence the main holding's business.
Competitive position
The group's holdings are unlisted and compete with larger, more established firms, a risk the report states explicitly. In funeral services Dignity faces national operators and new digital providers of direct cremation, and market share is a stated management objective.
As an investment company, Castelnau also competes with other funds and investment companies for capital and acquisition opportunities. The report does not provide a comparative analysis with these peers, so its relative position remains unconfirmed by the sources.
- UK funeral operators
Direct competitors of Dignity in funeral services and crematoria, not explicitly named in the source.
- Direct cremation providers
Companies competing in the growing direct cremation segment where Dignity launched the Simplicity brand.
- Other private asset investment companies
Funds pursuing the same acquisition opportunities and drawing capital from the same investor pool.
- Legal and will-writing providers
Competitors for probate and will services, which Dignity now provides in-house through Farewill.
News & filings
In the press
No news in our archive over the last 180 days.
Annual reports (ESEF)
- Annual report 202512 May 2026
- Annual report 202429 Apr 2025
Sources
- [1] Annual report, fiscal year ended 2025-12-31 (ESEF) · SEC / Castelnau Group Limited · 31 Dec 2025
Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.