Revenue and assets rise but profits slide for Impax

(Sharecast News) - Impax Asset Management reported a 4.8% increase in assets under management in its final results on Wednesday, to £37.4bn. The AIM-traded firm said revenue was ahead 1.7% year-on-year in the 12 months ended 30 September, to £178.4m.

However, adjusted operating profit decreased 13.8% to £58.1m, and profit before tax fell 28.2% to £52.1m.

The company's cash reserves stood at £87.7m at year-end, down from £107m at the end of the 2022 financial year.

Adjusted diluted earnings per share decreased 16.4% to 35.2p.

Impax proposed a final dividend of 22.9p per share, resulting in a total dividend per share of 27.6p, remaining unchanged from the prior year.

On the business front, Impax said it advanced its mission of transitioning to a more sustainable economy.

The company reported significant growth in renewable power generation, electric vehicle fleets, and investments to adapt to more extreme weather conditions.

Despite challenging market conditions, Impax said it maintained high client retention.

The firm also made targeted investments to support its growth and expanded its distribution capabilities, establishing a new office in Tokyo to strengthen its presence in North America, Latin America, and Japan.

Impax said it enhanced its product pipeline by launching an equities strategy targeting sustainable infrastructure and made additional investments to expand its fixed-income offering.

The company said it was also focused on increasing operational resilience and efficiency through investments in systems and infrastructure.

Impax introduced the Impax Sustainability Centre to support its sustainability initiatives further and facilitate the scaling of resources in the area.

"We made good progress in developing and launching new products, including a new sustainable infrastructure strategy and will soon launch a new social thematic strategy," said chief executive officer Ian Simm.

"We have also identified a particular opportunity within fixed income and have made strategic hires into that team.

"We are reviewing opportunities to source additional fixed income capabilities and will provide an update in due course."

Simm said that in a year when the firm celebrated its 25th anniversary, its conviction in its investment thesis focused on the transition to a more sustainable economy was stronger than ever.

"With valuations increasingly attractive, our investment teams have identified several compelling themes that we believe will play out over the medium to long term.

"For example, the adoption of renewable energy, the provision of climate resilient water supply and infrastructure and the deployment of new technology to improve access to healthy food and financial services worldwide."

At 1131 GMT, Impax Asset Management Group shares were up 3.12% at 439.83p.

Reporting by Josh White for Sharecast.com.