Impax revenue, earnings fall as AuM remains steady

(Sharecast News) - Impax Asset Management posted a modest decline in revenue and profits for the year ended 30 September on Thursday, while maintaining steady assets under management. The AIM-traded firm said revenue fell 4.7% to £170.1m, while adjusted operating profit decreased 9.3% to £52.7m.

Its adjusted operating margin narrowed slightly to 31% from 32.6% in the prior year.

IFRS profit before tax was down 6% at £49m, with adjusted diluted earnings per share falling 8.5% to 32.2p.

Despite the challenges, the company's AuM remained stable at £37.2bn, marginally lower than the £37.4bn recorded in 2023.

However, net outflows totalled £5.8bn for the year, compared to £92m in the prior year.

Impax attributed that to broader market pressures, but highlighted ongoing resilience in its financial and operational performance.

The company continued to expand its product range in listed equities and further developed its fixed-income capabilities through two acquisitions and enhancements to its investment processes.

Impax said its cash reserves increased to £90.8m, up from £87.7m a year earlier.

The board proposed a final dividend of 22.9p per share, maintaining a total dividend of 27.6p for the year, in line with 2023.

"The broadly flat trajectory of our AUM reflects a positive absolute contribution of £5.3bn from the investment performance of the funds and accounts that we manage, together with £312m of acquired fixed income AUM following our acquisition of Absalon Corporate Credit," said chief executive officer Ian Simm.

"In a challenging environment for active asset managers, this was offset by net outflows of £5.8bn, which was primarily from our European wholesale channel and particularly concentrated over the first three financial quarters.

"We are encouraged by Impax's prospects and believe that the macroeconomic backdrop is supportive for our strategies."

At 0956 GMT, shares in Impax Asset Management were up 7% at 344p.

Reporting by Josh White for Sharecast.com.