REG - Impax Asset Mgmnt - Half-year Report
29/05/2024 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240529:nRSc1675Qa&default-theme=true
RNS Number : 1675Q Impax Asset Management Group plc 29 May 2024
Impax Asset Management Group plc
Interim results to 31 March 2024
London, 29 May 2024 - Impax Asset Management Group plc ("Impax" or the
"Company"), the specialist investor focused on the transition to a more
sustainable global economy, today announces interim results for the six months
to 31 March 2024 (the "Period").
H1 Business highlights
· AUM growth of 5.9% to £39.6 billion, driven by investment
performance
· Business showed its resilience with an increase in net number of
institutional accounts; £2.7 billion of net outflows came largely from
wholesale channel in Europe
· Expanded capabilities in fixed income by agreeing to acquire
assets of Absalon Corporate Credit from Formuepleje Group
· Launched two new listed equities strategies
· Increased direct distribution capabilities and the focus on
Impax-branded funds
· Focused on operational efficiency and cost control
· Received the prestigious King's Award for Enterprise, in
Sustainable Development category
H1 Financial highlights
· AUM of £39.6 billion as at 31 March 2024 (H1 2023: £40.1
billion; FY 2023: £37.4 billion)
· Revenue of £86.2 million (H1 2023: £88.0 million; H2 2023:
£90.4 million)
· Adjusted operating profit of £25.8 million (H1 2023: £27.3
million; H2 2023: £30.8 million)
· Shareholders' equity at Period end £117.9 million (H1 2023:
£119.7 million; FY 2023: £134.0 million)
· Adjusted diluted earnings per share of 16.0 pence (H1 2023: 17.2
pence; H2 2023: 18.0 pence)
· Interim dividend per share of 4.7 pence (H1 2023: 4.7 pence; FY
2023 Total dividend: 27.6 pence)
Ian Simm, Chief Executive commented:
"The Company showed its resilience during the first half to its financial year
with a commendable rise in assets under management ("AUM") of 5.9%, positive
progress against our strategic priorities and careful management of our cost
base.
"The rise in our AUM was driven by the positive impact of £4.9 billion from
investment performance, market movement, and foreign exchange. This was
partially offset by net outflows of £2.7 billion, following asset allocation
decisions by clients primarily within our wholesale channel in Europe, who
rotated to a more 'risk-off' stance amid a higher interest rate environment.
Meanwhile, our institutional channel continues to be robust, and we saw an
increase in the net number of institutional accounts due to some significant
new client wins.
"Following nearly two years of relative headwinds, asset owner sentiment
around the transition to a more sustainable economy and associated areas of
Impax expertise has improved in recent months. We believe that companies
providing innovative solutions that address environmental and social
challenges remain compelling. Over the long run, we believe these companies
can benefit from rising demand for their products and services and deliver
strong earnings growth.
"Our strategy of increasing our direct distribution, diversifying our product
offering into areas such as fixed income and focusing on compelling investment
returns should translate into the delivery of further value for our
stakeholders.
"After the Period end, we were delighted to receive a coveted King's Award for
Enterprise in the Sustainable Development category, placing Impax among the
most innovative businesses in the UK; this is the third time we have been
recognised with this award." 1
The presentation for shareholders and analysts will be available to view on
the Company's website later this morning:
https://www.impaxam.com/investor-relations/reports-and-presentations
(https://www.impaxam.com/investor-relations/reports-and-presentations) .
1 Previously awarded Queen's Award for Enterprise, Sustainable Development
in 2020 and 2014.
Enquiries:
Impax Asset Management Group plc
Ian Simm, Chief Executive +44 (0)20 3912 3000
Paul French, Head of Corporate Communications
Montfort Communications
Gay Collins +44 (0)77 9862 6282
Jack Roddan +44 (0)78 2567 0695
impax@montfort.london (mailto:impax@montfort.london)
Peel Hunt LLP, Nominated Adviser and Joint Broker
Andrew Buchanan +44 (0)20 7418 8900
Dan Webster
Berenberg, Joint Broker
James Felix +44 (0)20 3207 7800
Dan Gee-Summons
LEI number: 213800AJDNW4S2B7E680
About Impax
Founded in 1998, Impax is a specialist asset manager, with assets under
management of approximately £39.6 billion as of 31 March 2024 in both listed
and private markets strategies, investing in the opportunities arising from
the transition to a more sustainable global economy.
Impax believes that capital markets will be shaped profoundly by global
sustainability challenges, including climate change, pollution and essential
investments in human capital, infrastructure and resource efficiency. These
trends will drive growth for well-positioned companies and create risks for
those unable or unwilling to adapt.
The company seeks to invest in higher quality companies with strong business
models that demonstrate sound management of risk. Impax offers a well-rounded
suite of investment solutions spanning multiple asset classes seeking superior
risk-adjusted returns over the medium to long term.
Impax has approximately 300 employees across its offices in the United
Kingdom, the United States, Ireland, Hong Kong and Japan, making it one of the
investment management sector's largest investment teams dedicated to
sustainable development.
www.impaxam.com (http://www.impaxam.com)
Chief Executive's Report
Impax showed its resilience in the first half of its financial year, which
includes the six months to 31 March 2024 ("the Period"). During the Period,
Impax's assets under management and advice ("AUM") rose by 5.9% to reach
£39.6 billion, driven by the performance of our investment strategies.
The positive impact of £4.9 billion from investment performance, market
movement, and foreign exchange was partially offset by net outflows of £2.7
billion, following asset allocation decisions by clients primarily within our
wholesale channel in Europe, who rotated to a more 'risk-off' stance amid a
higher interest rate environment. Meanwhile, our institutional channel
continues to be more robust and we saw an increase in the net number of
institutional accounts due to some significant new client wins; our new
business pipeline also remains healthy.
Despite ongoing challenges within the wider asset management industry, the
opportunities to invest in the transition to a more sustainable economy
continue to multiply. With experience dating back over 25 years and today's
global footprint, Impax continues to stand out from peers in offering
attractive investment products and solutions to asset owners around the world.
We are seeking to build out our differentiated positioning by increasing our
direct distribution capability, diversifying our product offering and focusing
on delivering strong investment returns, while at the same time carefully
managing our costs.
MARKETS
During the six months of the Period, global equities posted strong returns
amid an improving inflationary backdrop. While investment performance
continued to be heavily influenced by a small number of 'mega-cap' technology
stocks, this group was less dominant, as a broader range of companies
benefitted from resilient economic data from the United States and a
relatively strong earnings season. Notwithstanding this positive backdrop, the
shares of companies solving environmental problems and/or advancing the
transition to a more sustainable economy generally traded at lower ratings and
their expected earnings recovery relative to other stocks appeared to be
delayed.
INVESTMENT PERFORMANCE
Impax offers actively managed listed equities strategies that use our thematic
Environmental Markets taxonomies and the Impax Sustainability Lens, as well as
strategies in fixed income and private markets.
Although, in the main, our strategies have largely performed positively on an
absolute basis over the Period, top-down factors continue to impact
performance relative to generic indices. For example, the market concentration
of the mega cap technology stocks in the MSCI All Country World Index ("ACWI")
acted as a detractor for many of our strategies, particularly in the first
quarter of the financial year.
For the six-month Period, the Leaders and the Water strategies both
outperformed, though the remainder of our Environmental Markets strategies
lagged their benchmarks despite recording positive absolute returns.
Within our Sustainability Lens equities strategies range, the US Large Cap
strategy outperformed its benchmark over the Period, while the Global
Opportunities and US Small Cap strategies underperformed.
Meanwhile, in fixed income, the High Yield and Core Bond strategies both
performed in line with their benchmarks.
Longer term, six out of our 10 largest strategies have outperformed their
benchmarks over five years.
FIXED INCOME and Private Markets
We have identified the development of our fixed income platform as a strategic
priority as we aim to provide a wider range of solutions to our clients who
are seeking to allocate to the transition to a more sustainable economy.
In January 2024, we took an important step in this journey as we entered into
an agreement to acquire from the Formuepleje Group, the assets of Absalon
Corporate Credit ("Absalon"), with closing expected over the summer. Absalon
serves European institutional investors and Danish high net worth individuals.
Its four-person portfolio management team manages two fixed income strategies
in Global High Yield and Emerging Market Corporate Debt and, as of 31 March
2024, had in aggregate approximately £364 million of assets under management.
Meanwhile, within private markets, we announced the successful final close of
our fourth and largest ever fund in this area, raising €459 million. The
fund's portfolio comprises 10 investments that have completed within two years
of the fund's first close. The team is currently focused on developing the
portfolio as well as executing exits in the third fund, including a group of
German wind farms and a French wind and solar platform.
AUM movement for the Period
Listed Fixed Private markets Total
equities
income
£m
firm
£m
£m
£m
Total AUM at 30 September 2023 35,552 1,283 564 37,399
Net flows (2,710) (106) 114 (2,702)
Market movement, FX and performance 4,893 38 (8) 4,922
Total AUM at 31 March 2024 37,735 1,215 670 39,620
CLIENT GROUP
We continue to build out our direct distribution capabilities to support the
growth of our own label fund ranges in Europe and the US and to serve
professional and institutional investors globally. This activity is led by our
Client Group, which includes sales, client service, product development, and
marketing professionals in North America and Europe & Asia-Pacific.
Significant new client wins during the Period included listed equities
mandates for pension funds in the UK, Sweden and Australia. In the United
States we saw additional subscriptions into the US Large Cap strategy from a
leading private bank and the Leaders strategy was chosen for inclusion in two
model portfolios.
Redemptions during the Period were primarily made through our wholesale
channel and largely by retail clients served by our third-party distribution
partners, including BNP Paribas Asset Management in Europe & Asia-Pacific.
By the Period end Environmental Markets strategies represented 57% (H1 2023:
62%) and Sustainability Lens strategies 36% (H1 2023: 32%) of the Company's
total assets under management.
Our Ireland-based UCITS fund range grew by 11% to £2.2 billion, with flat net
flows. In the US, our own label fund range's AUM grew by 10% to £7 billion,
despite net outflows of £245 million.
As part of our new product development in listed equities, in December 2023 we
launched a Global Social Leaders strategy, which invests in businesses with
strong corporate cultures that are responding to long-term, secular social
trends.
In March 2024, we seeded a Global Emerging Markets Opportunities strategy,
which will be managed by our investment team in London and Hong Kong and is
aimed at clients seeking a sustainable core allocation equities product
investing in those growth markets.
We continue to invest in our brand, and our leadership was again recognised as
Impax was named 'Responsible Investor of the Year' in the Reuters Responsible
Business Awards and 'Boutique Manager of the Year' by Financial News. After
the Period end, we were honoured with a coveted King's Award for Enterprise in
the Sustainable Development category, placing Impax among the most innovative
businesses in the UK; this is the third time we have been recognised with this
award.(1)
1. Previously awarded Queen's Award for Enterprise, Sustainable
Development in 2020 and 2014.
IMPAX SUSTAINABILITY CENTRE
We recently formed the Impax Sustainability Centre to bring together our
expertise in areas including sustainability research, company engagement,
policy advocacy, thought leadership and impact reporting. In recent years the
team has interacted consistently with regulators and companies regarding the
approach to reporting on physical climate risk. Our leadership on this issue
was demonstrated in March this year, when the United States Securities &
Exchange Commission cited Impax 24 times in the background notes to its new
climate risk disclosure rule, including the requirement that companies report
on physical risks and asset locations when impacts are material.
Meanwhile the team also provided a detailed response to the European Union's
Sustainable Finance Disclosure Regulation consultation process, acted as
co-chair of the UK's Asset Management Transition Plan working group and signed
on as an early adopter of recommendations from the Task Force on Nature
Related Financial Disclosures.
CORPORATE SERVICES
We have continued to work hard to ensure our support functions are optimally
positioned to operate efficiently, support the wider firm's risk management
and contribute to new business development opportunities, while at the same
time responding to evolving regulatory requirements.
Performance for Environmental Markets strategies(1, 2, 3)
Cumulative returns (%), GBP, gross of fees
AUM 6M 1YR 3YR 5YR
Leaders £7.4bn 18.1 12.9 25.5 77.0
Water £6.6bn 18.8 16.7 38.1 98.9
Specialists £3.3bn 12.3 3.9 9.2 69.0
Climate £2.8bn 12.7 7.0 9.5 69.9
Sustainable Food £0.8bn 7.4 (1.1) 2.2 29.8
MSCI ACWI 16.1 20.6 33.6 73.2
Asian Environmental £0.7.bn 0.5 (7.9) (10.4) 23.2
MSCI Asia Pac Composite 8.3 6.9 (1.2) 25.2
Performance for Sustainability Lens Listed Equities strategies(1,2)
Cumulative returns (%), GBP, gross of fees
AUM 6M 1YR 3YR 5YR
Global Opportunities £10.3bn 13.4 12.4 31.9 83.8
MSCI ACWI 16.1 20.6 33.6 73.2
US Large Cap £2.2bn 20.5 22.7 41.4 119.4
S&P 500 19.3 27.1 51.4 107.9
US Small Cap £0.6bn 13.5 13.1 19.8 61.2
Russell 2000 15.9 17.2 8.9 52.3
Performance for Sustainability Lens Fixed Income strategies(1,3)
Cumulative returns (%), GBP, gross of fees
AUM 6M 1YR 3YR 5YR
High Yield Bond £0.4bn 4.5 7.1 12.8 25.2
ICE BofA US Cash Pay High Yield Constrained (BB-B) 4.8 7.8 16.1 25.3
Core Bond £0.7bn 2.7 0.3 3.3 7.4
Bloomberg US Aggregate 2.4 (0.5) 1.4 5.0
1. AUM (GBP as at 31 March 2024). The strategy returns are
calculated including the dividends re-invested, net of withholding taxes,
gross of management fee, and are represented in sterling.
2. MSCI AC AP Composite is a custom-made benchmark made up of 80%
MSCI AC Asia Pacific ex-Japan and 20% MSCI Japan rebalanced daily. MSCI
indices are total net return (net dividend re-invested).
3. MCSI indices are total net return (net dividend re-invested).
S&P, Russell, ICE BofA, and Bloomberg indices are all total gross return.
We have prioritised the development of our data management capabilities and
the integration of artificial intelligence-based tools across the business,
combined with appropriate governance controls. We also strengthened our
approach to risk and compliance, including developing an enterprise risk
framework and creating a single global team in this area.
Across the firm we have significantly slowed down our rate of hiring and our
headcount remained broadly flat, with 306 employees at the end of March.
FInANCIAL RESULTS FOR THE PERIOD
Revenue for the Period decreased slightly to £86.2 million compared to both
the first and second half of 2023 (H1 2023: £88.0 million, H2 2023: £90.4
million) as a result of a relative decrease in average AUM over the Periods.
At the end of the Period the weighted average run rate revenue margin remained
stable at 45 basis points (30 September 2023: 45 basis points). The
Period-end increase in AUM compared to H2 2023 saw our run-rate revenue rise
to £177.1 million (30 September 2023: £169.0 million).
Adjusted operating costs for the Period increased marginally to £60.3 million
compared to H2 2023 (H1 2023: £60.6 million, H2 2023: £59.7 million) as
costs continued to be carefully managed.
Adjusted operating profit for the Period was £25.8 million (H1 2023: £27.3
million, H2 2023: £30.8million). The decrease from H1 and H2 2023 is due to
the decrease in revenue discussed above. Despite reduced revenues, the
operating profit margin remains robust at 30.0% (H1 2023: 31.0%, H2 2023:
34.1%). Run-rate adjusted operating margin at the end of the Period was 30.6%
(H2 2023: 32.6%). Run-rate adjusted operating profit was £54.2 million at
the end of the Period (H1 2023: £58.0 million, H2 2023: £51.9 million).
Financial Highlights for H1 2024 versus H1 2023 and H2 2023
H1 2024 H1 2023 H2 2023
Revenue £86.2m £88.0m £90.4m
Adjusted operating costs(1) £60.3m £60.6m £59.7m
Adjusted operating profit(1) £25.8m £27.3m £30.8m
Adjusted diluted earnings per share(1) 16.0p 17.2p 18.0p
IFRS operating profit £24.1m £24.8m £29.4m
IFRS profit before tax £24.6m £21.4m £30.7m
IFRS diluted earnings per share 14.0p 12.8p 17.0p
1 This is an Alternative Performance Measure.
Adjusted profit before tax of £27.4 million (H1 2023: £28.2 million, H2
2023: £31.8 million) and adjusted diluted earnings per share of 16.0 pence
(H1 2023: 17.2 pence, H2 2022: 18.0 pence) include net finance income of
£1.5 million (H1 2023: £0.9 million, H2 2023 £1.0 million).
IFRS profit before tax of £24.6 million (H1 2023: £21.4 million, H2 2023:
£30.7 million) and IFRS diluted earnings per share of 14.0 pence (H1 2023:
12.8 pence, H2 2023: 17.0 pence) includes £1.7 million of acquisition related
charges and £1.1 million of foreign exchange losses attributable to the
foreign exchange losses on the retranslation of intercompany loans and other
assets held in foreign currencies.
TAX
The effective tax rate has increased due to an increase in the main
corporation tax rate in the UK from 19% to 25% from 1 April 2023.
FINANCIAL RESOURCES
The Company continues to retain high levels of cash reserves and no debt. Our
cash reserves, which include amounts invested in money market funds, were
£60.8 million at the Period end (H1 2023: £61.8 million). We continue to
hold seed investments and to invest in our private equity funds. These
investments were in total valued at £15.4 million at the Period end
(H1 2023: £10.1 million).
DIVIDENDS
A final dividend for 2023 of 22.9 pence per share was paid in March 2024,
following approval at the Annual General Meeting. This took the total dividend
paid for 2023 to 27.6 pence per share. We are amending our dividend policy
which going forward will be to pay, in normal circumstances, an annual
dividend of at least 55% of adjusted profit after tax, while ensuring that we
retain sufficient capital to invest in our future growth.
As described above, despite the outflows experienced during the Period,
the business continued to demonstrate resilience and we are pleased to
announce an interim dividend of 4.7 pence per share (2023: 4.7 pence per
share). This dividend per share will be paid on 19 July 2024 to ordinary
shareholders on the shareholder register at the close of business on 14 June
2024. The Company operates a dividend reinvestment plan ("DRIP"). The final
date for receipt of elections under the DRIP will be 28 June 2024. For further
information and to register and elect for this facility, please visit
www.signalshares.com and search for information related to the Company.
SHARE MANAGEMENT
The Board will consider purchasing the Company's shares from time to time
after due consideration of alternative uses of the Company's cash resources.
Share purchases are usually made by the Group's Employee Benefit Trust ("EBT")
(subject to the trustees' discretion), using funding provided by the Company.
During the Period, the EBT purchased 1.6 million of ordinary shares at a
weighted average price of £4.53 per share. The EBT holds shares for
Restricted Share awards until they vest or to satisfy share option exercises.
At the Period end the EBT held a total of 4.6 million shares, 3.3 million of
which were held for Restricted Share awards leaving up to 1.3 million
available for option exercises and future share awards.
At the end of the Period, there were 2.6 million options outstanding, of which
50,000 were exercisable.
Board Succession
After the Period end, we announced the appointment of Lyle Logan as
Non-Executive Director, effective 1 May 2024. Lyle, who is based in Chicago,
has considerable experience within the wealth management, asset management and
asset servicing space and is currently Vice Chairman of Northern Trust.
The announcement follows the appointment of Julia Bond as a Non-Executive
Director in November 2023. As previously announced, Sally Bridgeland and
Lindsey Brace Martinez will step down from the Board at the end of July 2024
on the ninth anniversary of joining. On behalf of the Board, I would like to
thank Sally and Lindsey for their excellent contributions and wise counsel
over the years.
On 31 July 2024, current Impax Director, Simon O'Regan will succeed Sally as
independent Non-Executive Chair, subject to regulatory approval. Board member
Annette Wilson will succeed Simon as Senior Independent Director and Julia
will succeed Lindsey as Chair of the Remuneration Committee. Lyle and Julia
are both members of the Audit & Risk and Remuneration Committees.
OUTLOOK
Following nearly two years of relative headwinds, asset owner sentiment around
the transition to a more sustainable economy and associated areas of Impax
expertise has improved in recent months. The recovery in global equities since
last November appears to be resilient and there are indications that stocks
within the 'quality growth' portfolios that Impax is focused on are due for
a re-rating.
Meanwhile, the rise in the severity of issues linked to climate change, for
example weather-related damage, is featuring in both the public and offline
comments of leading major investment institutions globally, raising the
likelihood that allocations to investment areas in which Impax has expertise
will increase.
Our investment team continues to look for mispriced opportunities and is
constructing portfolios that should benefit from an improvement in secular
and/or cyclical market drivers. This includes companies recovering from
destocking, such as natural ingredients suppliers, as well as businesses with
strong pricing power and inflation resilience.
We believe that the drivers of the transition to a more sustainable economy
remain intact and that companies providing innovative solutions that address
environmental and social challenges remain compelling. Over the long run, we
believe these companies can benefit from rising demand for their products and
services and deliver strong earnings growth.
We are encouraged by the strength of our new business pipeline and have
noticed an uptick in the number of institutional mandate tenders in recent
months. While we have been impacted by net outflows in our European wholesale
channel, our client retention overall remains strong.
Impax's positioning as a specialist active manager continues to appeal
strongly to asset owners and their advisers around the world. Our strategy of
increasing our direct distribution, diversifying our product offering into
areas such as fixed income and focusing on compelling investment returns
should translate into the delivery of further value for our stakeholders.
Ian Simm
Chief Executive
28 May 2024
Condensed Consolidated Income Statement
For the six months ended 31 March 2024
Notes Unaudited Unaudited Audited
Six months ended 31 March 2024
Six months ended 31 March 2023
Year ended
£000
£000
30 September 2023
£000
Revenue 86,150 87,960 178,367
Operating costs (62,030) (63,142) (124,120)
Finance income 5 1,893 1,457 3,130
Finance expense 6 (1,453) (4,879) (5,271)
Profit before taxation 24,560 21,396 52,106
Taxation 7 (6,321) (4,601) (12,884)
Profit after taxation 18,239 16,795 39,222
Earnings per share
Basic 8 14.3p 13.0p 30.5p
Diluted 8 14.0p 12.8p 29.8p
Adjusted results are provided in note 3.
Condensed Consolidated Statement of
Comprehensive Income
For the six months ended 31 March 2024
Unaudited Unaudited Audited
Six months ended 31 March 2024
Six months ended 31 March 2023
Year ended
£000
£000
30 September 2023
£000
Profit for the Period 18,239 16,795 39,222
Exchange differences on translation of foreign operations (710) (466) (119)
Total other comprehensive income (710) (466) (119)
Total comprehensive income for the Period attributable 17,529 16,329 39,103
to equity holders of the parent
All amounts in other comprehensive income may be reclassified to income in the
future.
The statement has been prepared on the basis that all operations are
continuing operations.
Condensed Consolidated Statement of Financial Position
For the six months ended 31 March 2024
Note Unaudited Unaudited Audited
As at
As at
As at
31 March
31 March
30 September 2023
2024
2023
£000
£000
£000
Assets
Non-current assets
Goodwill 10 12,501 12,738 12,883
Intangible assets 10 12,378 15,378 14,185
Property, plant and equipment 11 8,198 8,271 8,820
Deferred tax assets 3,887 5,278 3,665
Total non-current assets 36,964 41,665 39,553
Current assets
Trade and other receivables 39,229 44,003 42,543
Investments 12 15,364 10,127 13,270
Current tax asset 1,127 2,416 1,645
Cash invested in money market funds 13 44,103 20,153 53,542
Cash and cash equivalents 13 20,899 46,932 37,963
Total current assets 120,722 123,631 148,963
Total assets 157,686 165,296 188,516
Equity and liabilities
Equity
Ordinary shares 14 1,326 1,326 1,326
Share premium 9,291 9,291 9,291
Merger reserve 1,533 1,533 1,533
Exchange translation reserve 2,230 2,593 2,940
Retained earnings 103,471 104,966 118,868
Total equity 117,851 119,709 133,958
Current liabilities
Trade and other payables 31,012 35,166 44,809
Lease liabilities 11 1,957 1,361 1,524
Current tax liability 655 1,985 1,007
Total current liabilities 33,624 38,512 47,340
Non-current liabilities
Lease liabilities 11 6,211 6,706 7,218
Deferred tax liability - 369 -
Total non-current liabilities 6,211 7,075 7,218
Total liabilities 39,835 45,587 54,558
Condensed Consolidated Statement of Changes in Equity
For the six months ended 31 March 2024
Share capital £000 Share premium £000 Merger reserve £000 Exchange translation reserve £000 Retained earnings Total equity £000
£000
1 October 2022 1,326 9,291 1,533 3,059 122,969 138,178
Transactions with owners of the Company
Dividends paid - - - - (30,216) (30,216)
Cash received on option exercises - - - - 1,261 1,261
Tax credit on long-term incentive schemes - - - - 1,623 1,623
Share based payment charge - - - - 2,649 2,649
Acquisition of own shares - - - - (10,115) (10,115)
Total transactions with owners - - - - (34,798) (34,798)
Profit for the Period - - - - 16,795 16,795
Other comprehensive income
Exchange differences on translation of foreign operations - - - (466) - (466)
Total other comprehensive income - - - (466) - (466)
31 March 2023 1,326 9,291 1,533 2,593 104,966 119,709
Transactions with owners of the Company
Dividends paid - - - - (6,160) (6,160)
Tax charge on long-term incentive schemes - - - - (1,252) (1,252)
Share based payment charge - - - - 3,886 3,886
Acquisition of own shares - - - - (4,999) (4,999)
Total transactions with owners - - - - (8,525) (8,525)
Profit for the Period - - - - 22,427 22,427
Other comprehensive income
Exchange differences on translation of foreign operations - - - 347 - 347
Total other comprehensive income - - - 347 - 347
30 September 2023 1,326 9,291 1,533 2,940 118,868 133,958
Transactions with owners of the Company
Dividends paid - - - - (30,132) (30,132)
Cash received on option exercises - - - - 359 359
Tax charge on long-term incentive schemes - - - - (63) (63)
Share based payment charge - - - - 3,375 3,375
Acquisition of own shares - - - - (7,175) (7,175)
Total transactions with owners - - - - (33,636) (33,636)
Profit for the Period - - - - 18,239 18,239
Other comprehensive income
Exchange differences on translation of foreign operations - - - (710) - (710)
Total other comprehensive income - - - (710) - (710)
31 March 2024 1,326 9,291 1,533 2,230 103,471 117,851
Condensed Consolidated Statement of Cash Flows
For the six months ended 31 March 2024
Note Unaudited Unaudited Audited Year ended 30 September 2023
Six months ended 31 March 2024 £000
Six months ended 31 March 2023 £000
£000
Operating activities:
Cash generated from operations 16 19,493 6,203 53,218
Corporation tax paid (6,440) (5,932) (14,562)
Net cash generated from operating activities 13,053 271 38,656
Investing activities:
Net acquisition of property plant and equipment and intangible assets (643) (376) (824)
Investments into unconsolidated Impax funds (4,903) (2,298) (8,073)
Redemptions from unconsolidated Impax funds 3,883 96 2,792
Settlement of investment related hedges (984) (477) (390)
Investment income received 1,803 1,264 2,865
Decrease in cash held by money market funds 9,439 38,534 5,145
Net cash generated from investment activities 8,595 36,743 1,515
Financing activities:
Interest paid on bank borrowings - (34) (86)
Payment of lease liabilities (654) (1,011) (1,979)
Acquisition of own shares (7,175) (10,115) (15,114)
Cash received on exercise of Impax share options 359 1,261 1,261
Dividends paid (30,132) (30,216) (36,376)
Net cash used by financing activities (37,602) (40,115) (52,294)
Net decrease in cash and cash equivalents (15,954) (3,101) (12,123)
Cash and cash equivalents at the beginning of the Period 37,963 52,232 52,232
Effect of foreign exchange rate changes (1,110) (2,199) (2,146)
Cash and cash equivalents at the end of the Period 13 20,899 46,932 37,963
Notes to the Condensed Consolidated Interim
Financial Statements
For the six months ended 31 March 2024
1 Basis of preparation
This interim report is unaudited and does not constitute statutory accounts
within the meaning of Section 435 of the Companies Act 2006. These condensed
consolidated interim financial statements have been prepared in accordance
with IAS 34 'Interim Financial Reporting' and the AIM rules. They do not
include all of the information required for full annual financial statements,
and should be read in conjunction with the consolidated financial statements
of the Group for the year ended 30 September 2023.
The comparative figures for the financial year ended 30 September 2023 are not
the Company's statutory accounts for that financial year. Those accounts,
prepared in accordance with international accounting standards in conformity
with the requirements of the Companies Act 2006, have been reported on by the
Company's auditors and delivered to Companies House. The report of the
auditors was (i) unqualified, (ii) did not include a reference to matters to
which the auditors drew attention by way of emphasis without qualifying their
report, and (iii) did not contain a statement under Section 498 (2) or (3) of
the Companies Act 2006. Copies of these accounts are available upon request
from the Company's registered office at 7th floor, 30 Panton St, London, SW1Y
4AJ or at the Company's website: www.impaxam.com (http://www.impaxam.com)
.
Going concern
The financial statements have been prepared on a going concern basis which the
Directors consider to be appropriate for the following reasons. Cash flow
forecasts covering a period of 12 months from the date of approval of these
financial statements indicate that, taking account of reasonably possible
downside assumptions in relation to asset flows, market performance and costs,
the Group will have sufficient funds to meet its liabilities as they fall due
and regulatory capital requirements for that period. The Group has sufficient
cash balances and no debt and, based on Period-end AUM, is profitable. A
significant part of the Group's cost basis is variable as bonuses are linked
to profitability. The Group can also preserve cash through dividend reduction
and through issuance of shares to cover share option exercises/restricted
share awards (rather than purchasing shares). Consequently, the Directors are
confident that the Group will have sufficient funds to continue to meet its
liabilities as they fall due for at least 12 months from the date of approval
of the financial statements and therefore have prepared the financial
statements on a going concern basis.
Accounting policies
The accounting policies applied by the Group in these condensed consolidated
interim financial statements are the same as those applied by the Group in its
consolidated financial statements for the year ended 30 September 2023.
New and forthcoming accounting standards applicable to the Group
No new accounting standards or interpretations issued or not yet effective are
expected to have an impact on the Group's condensed consolidated financial
statements.
2 Estimates
The preparation of interim financial statements requires management to make
judgements, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets and liabilities, income
and expense. Actual results may differ from these estimates.
The Group has not identified any significant judgements and estimates at the
end of the reporting Period. However the key areas that include judgement
and/or estimates are set out in note 10.
3 Adjusted profits and earnings
The reported operating earnings, profit before tax and earnings per share are
substantially affected by business combination effects and other items. The
Directors have therefore decided to report an adjusted operating profit,
adjusted profit before tax and adjusted earnings per share which exclude these
items in order to enable comparison with peers and provide consistent measures
of performance over time. A reconciliation of the adjusted amounts to the
IFRS reported amounts is shown below.
Six months ended 31 March 2024
Reported IFRS Adjustments Adjusted
£000
£000
Historic business combination effects Other
£000
£000
Income statement
Revenue 86,150 86,150
Operating costs (62,030) (60,320)
Amortisation of intangibles arising on acquisition 1,286
Acquisition equity incentive scheme charges 396
Mark to market charge on equity awards 28
Operating profit 24,120 1,682 28 25,830
Finance income 1,893 1,893
Finance expense (1,453) 1,091 (362)
Profit before taxation 24,560 1,682 1,119 27,361
Taxation (6,321)
Tax on adjustments (280) (6,601)
Profit after taxation 18,239 1,682 839 20,760
Diluted earnings per share 14.0p 1.3p 0.6p 16.0p
Six months ended 31 March 2023
Reported IFRS Adjustments Adjusted
£000
(restated)**
£000
Historic business combination effects Other
£000
£000
Income statement
Revenue 87,960 87,960
Operating costs (63,142) (60,645)
Amortisation of intangibles arising on acquisition 1,344
Acquisition equity incentive scheme charges 661
Mark to market charge on equity awards 492
Operating profit 24,818 2,005 492 27,315
Finance income 1,457 1,457
Finance expense (4,879) 4,328 (551)
Profit before taxation 21,396 2,005 4,820 28,221
Taxation (4,601)
Tax on adjustments (1,085) (5,686)
Profit after taxation 16,795 2,005 3,735 22,535
Diluted earnings per share 12.8p 1.5p 2.8p 17.2p
The adjusted diluted earnings per share is calculated using the adjusted
profit after taxation shown above. The diluted number of shares is the same as
used for the IFRS calculation of earnings per share (see note 8).
Similar adjustments have been made, where relevant, for the year ended 30
September 2023 to give adjusted operating profit of £58,103,000, adjusted
profit before tax of £59,956,000 and adjusted diluted earnings per share of
35.2 pence.
Amortisation of intangibles
Management contracts, which are classified as intangible assets, were acquired
as part of the acquisition of Pax World Management LLC (the "Acquisition"),
subsequently referred to as 'Impax NH'. These management contracts are
amortised over their 11 year life. This charge is not linked to the operating
performance of the Impax NH business so is excluded from adjusted profit.
Acquisition equity incentive scheme charges
Impax NH staff have been awarded share-based payments in respect of the
acquisition of Impax NH. Charges in respect of these relate to the acquisition
rather than the operating performance of the Group and are therefore excluded
from adjusted profit.
Mark to market charge on equity incentive awards
The Group has in prior years and the current period awarded employees options
over the Group's shares, some of which are either unvested or unexercised at
the balance sheet date. The Group has also made awards of restricted shares
("RSS awards") which have not vested at the balance sheet date. Employers'
national insurance contributions ("NIC") are payable on the options when they
are exercised and on the RSS awards when they vest, based on the valuation of
the underlying shares at that point. A charge is accrued for the NIC within
IFRS operating profit based on the share price at the balance sheet date. The
Group also receive a corporation tax credit equal to the value of the awards
at the date they are exercised (options) or vest (RSS awards). The tax credit
in excess of the cumulative share-based payment expense is recognised directly
in equity.
These two charges/credits vary based on the Group's share price (together
referred to as mark to market charge on equity incentive schemes) and are not
linked to the operating performance of the Group. They are therefore
eliminated when reporting adjusted profit.
Finance income and expense
Finance expense for the Period has been adjusted for foreign exchange gains
and losses on monetary assets that are not linked to the operating
performance of the Group. £450,000 of the current Period foreign exchange
loss relates to the retranslation of a US dollar denominated loan between the
Parent Company and a US subsidiary with the remaining amount mainly relating
to retranslation of cash and cash equivalents. A corresponding gain is
recognised in equity in the exchange translation reserve.
4 Segment Information
The Group is managed on an integrated basis and there is one reportable
segment. Segment information is presented on the same basis as that provided
for internal reporting purposes to the Group's chief operating decision maker,
the Chief Executive.
5 Finance income
31 March 31 March 30 September
2024
2023
2023
£000
£000
£000
Fair value gains 90 193 265
Interest income 1,803 1,264 2,865
1,893 1,457 3,130
6 Finance expense
31 March 31 March 30 September
2024
2023
2023
£000
£000
£000
Interest on lease liabilities 217 209 411
Finance costs on bank loans - 34 86
Foreign exchange losses 1,236 4,636 4,774
1,453 4,879 5,271
Foreign exchange losses in the Period mainly arose on the retranslation of
monetary assets held in US dollars. £450,000 of this loss relates to the
retranslation of a US dollar denominated loan between the Parent Company and a
US subsidiary. The remaining amount relates to the retranslation of cash and
cash equivalents. A corresponding gain is recognised in equity in the exchange
translation reserve.
7 Taxation
The tax rate for the Period is higher than the standard rate of corporation
tax in the UK for the Period (25%). The differences are explained below:
Six months ended 31 March Six months ended 31 March Year ended
2024
2023
30 September 2023
£000
£000
£000
Profit before tax 24,560 21,396 52,106
Tax charge at 25% (FY23: 22% and HY23: 19%) 6,140 4,707 11,463
Effects of:
Non-taxable income (13) (47) (231)
Non-deductible expenses and charges 62 4 778
Tax differences on share awards 656 (449) 478
Adjustment in respect of historical tax charges (393) 289 559
Effect of lower tax rates in foreign jurisdictions (131) (1) (29)
Tax losses not recognised - 98 9
Recognition of prior year tax losses - - (143)
Total income tax expense 6,321 4,601 12,884
8 Earnings per share
Basic earnings per share ("EPS") is calculated by dividing the profit for the
year attributable to ordinary equity holders of the Parent Company (the
"Earnings") by the weighted average number of ordinary shares outstanding
during the year, less the weighted average number of own shares held. Own
shares are held in Employee Benefit Trusts ("EBTs"). Diluted EPS includes an
adjustment to reflect the dilutive impact of share awards.
Six months ended 31 March 2024 Earnings for the Period Shares Earnings per share
£000
'000
Basic 18,239 127,838 14.3p
Diluted 18,239 130,113 14.0p
Six months ended 31 March 2023
Basic 16,795 129,076 13.0p
Diluted 16,795 131,114 12.8p
Year ended 30 September 2023
Basic 39,222 128,769 30.5p
Diluted 39,222 131,572 29.8p
The weighted average number of shares is calculated as shown in the table
below.
Six months ended 31 March 2024 Six months ended 31 March 2023 Year ended
'000
'000
30 September 2023
'000
Weighted average issued share capital 132,597 132,597 132,597
Less own shares held (4,759) (3,521) (3,828)
Weighted average number of ordinary shares used in the calculation of basic 127,838 129,076 128,769
EPS
Additional dilutive shares re share awards 5,339 3,767 4,080
Adjustment to reflect option exercise proceeds and future service from (3,064) (1,729) (1,277)
employees receiving awards/shares
Weighted average number of ordinary shares used in the calculation of diluted 130,113 131,114 131,572
EPS
9 Dividends
On 12 March 2024, at the Company's Annual General Meeting, payment of a 22.9
pence per share final dividend for the year ended 30 September 2023 (2022:
22.9 pence per share) was approved. Combined with an interim payment of 4.7
pence this gave total dividends for the year ended 30 September 2023 of 27.6
pence. The Trustee of the Impax Employee Benefit Trusts waived the Trusts'
rights to part of the final dividend, leading to a total dividend payment of
£30,132,057 which was paid on 22 March 2024.
The Board has declared an interim dividend for the Period of 4.7 pence per
ordinary share (2023: 4.7 pence). This dividend will be paid on 19 July 2024
to ordinary shareholders on the register at close of business on 14 June 2024.
10 Goodwill and Intangible assets
The goodwill balance within the Group at 31 March 2024 arose from the
acquisition of Impax Capital Limited on 18 June 2001 and the acquisition of
Impax NH in January 2018.
Goodwill
£000
Cost
At 1 October 2022 13,932
Foreign exchange movement (1,194)
At 31 March 2023 12,738
Foreign exchange movement 145
At 30 September 2023 12,883
Foreign exchange movement (382)
At 31 March 2024 12,501
There were no brought forward impairment losses at 1 October 2023 or
impairment charges during the Period.
Intangible assets
Management contracts Software Total
£000
£000
£000
Cost
At 1 October 2022 31,910 301 32,211
Additions - 132 132
Foreign exchange movement (3,490) - (3,490)
At 31 March 2023 28,420 433 28,853
Additions - 167 167
Foreign exchange movement 780 - 780
At 30 September 2023 29,200 600 29,800
Additions - - -
Foreign exchange movement (1,387) - (1,387)
At 31 March 2024 27,813 600 28,413
Accumulated amortisation
At 1 October 2022 13,646 225 13,871
Charge for the period 1,344 15 1,359
Foreign exchange movement (1,755) - (1,755)
At 31 March 2023 13,235 240 13,475
Charge for the period 1,469 47 1,516
Foreign exchange movement 624 - 624
At 30 September 2023 15,328 287 15,615
Charge for the period 1,286 58 1,344
Foreign exchange movement (924) - (924)
At 31 March 2024 15,690 345 16,035
Net book value
At 31 March 2024 12,123 255 12,378
At 30 September 2023 13,872 313 14,185
At 31 March 2023 15,185 193 15,378
The management contracts were acquired with the acquisition of Impax NH in
January 2018 and are amortised over an 11-year life.
Assets under management, forecast asset inflows and operation margin are all
the same or in excess of the assumptions when the management contracts were
first valued. The discounted cost of capital is the same as when the
management contracts were first valued. As such, there are no indicators of
impairment.
11 Property, plant & equipment
Property plant and equipment
31 March 31 March 30 September
2024
2023
2023
£000
£000
£000
Right-of-use assets 6,593 6,689 7,254
Property, plant and equipment owned by the Group 1,605 1,582 1,566
8,198 8,271 8,820
The carrying value of the Group's right of use assets, associated lease
liabilities and the movements during the Period are set out below.
Lease arrangements
Right of use asset Lease
£000
liabilities
£000
At 1 October 2023 7,254 8,742
Additions 314 314
Lease payments - (968)
Interest expense - 217
Depreciation charge (859) -
Foreign exchange movement (116) (137)
At 31 March 2024 6,593 8,168
12 Current asset investments
The Group makes seed investments into its own Listed Equities funds and also
invests in its Private Equity funds. Where the funds are consolidated the
underlying investments are shown in the table below. Investments made in
unconsolidated funds are also included.
£000
At 1 October 2022 7,255
Additions 2,298
Fair value movements 670
Repayments/disposals (96)
At 31 March 2023 10,127
Additions 5,775
Fair value movements 64
Repayments/disposals (2,696)
At 30 September 2023 13,270
Additions 4,903
Fair value movements 1,074
Repayments/disposals (3,883)
At 31 March 2024 15,364
An analysis of the investment by valuation technique hierarchy is disclosed
below:
31 March 2024 31 March 2023 30 September 2023
£000
£000
£000
Level 1 10,546 6,363 8,623
Level 2 - - -
Level 3 4,818 3,764 4,647
15,364 10,127 13,270
Level 1 means that valuation is made by reference to quoted prices in active
markets for the relevant securities.
Level 2 assets do not have regular market pricing but can be given a fair
value based on quoted prices in active markets.
Level 3 assets are those where there is no readily available market
information to value them and the asset value are based on models. They
represent investments in our private equity funds.
13 Cash reserves
Cash and cash equivalents under IFRS does not include cash invested in money
market funds which is exposed to market variability. However the Group
considers its total cash reserves to include these amounts. Cash held by
consolidated funds is not considered to be available to the Group so it is not
included in cash reserves. Cash held in Research Payment Accounts ("RPAs") is
collected from funds managed by the Group and can only be used towards the
cost of researching stocks. A liability of an equal amount is included in
trade and other payables. This cash is excluded from cash reserves. A
reconciliation is shown below:
31 March 31 March 30 September
2024
2023
2023
£000
£000
£000
Cash and cash equivalents 20,899 46,932 37,963
Cash held in money market funds 44,103 20,153 53,542
Less: cash held in RPAs (4,190) (5,276) (3,813)
Total cash reserves 60,812 61,809 87,692
14 Share capital and own shares
31 March 31 March 30 September
2024
2023
2023
Issued and fully paid ordinary shares of 1 pence each
Number 132,596,554 132,596,554 132,596,554
£000s 1,326 1,326 1,326
31 March 31 March 30 September
2024
2023
2023
Own shares
Number 4,633,424 3,613,276 4,274,276
£000s 20,168 8,995 18,605
Own shares represents those held by the Impax Asset Management Group plc
Employee Benefit Trust 2012 (the "EBT") which are typically used to fund
exercise of options or awards of restricted shares. 1.6 million shares were
purchased by the EBT in the six months ended 31 March 2024. The EBT
transferred 1.2 million shares to option/restricted share holders on exercise
of options or to holders of restricted shares when the restrictions lapsed.
As at 31 March 2024, there were a total of 2.6 million options outstanding
over the Group's shares, of which 50,000 were exercisable. As at 31 March
2024, employees also held 3.3 million Restricted Shares over which the
restrictions lapse from June 2024 through to January 2029. These Restricted
Shares are held in the EBT and included in the own shares numbers shown above.
15 Related party transactions
Private equity funds managed by the Group, entities controlled by these funds
and the Global Resource Optimization Fund LP and Impax Global Opportunities
Fund LP are related parties of the Group by virtue of subsidiaries being the
General Partners to these funds. The Group earns management fees from
these entities.
BNP Paribas Asset Management Holdings is a related party of the Group by
virtue of owning a 13.8% equity holding as well as having a representative on
the Board of Directors. The Group sub-manages certain funds for BNP for which
it earns fees.
Other funds managed by subsidiaries of the Group are also related parties by
virtue of their management contracts.
Fees earned from the above related parties and amounts receivable are
disclosed within this note below. During the Period, there were two existing
loan facilities that were provided to an Executive Director for the sole
purpose of investment in funds managed by the Group. The loans are provided at
interest rates of 2.25% and 3.0% per annum on amounts drawn, calculated on a
daily basis. Total interest of €2,111 was accrued during the Period and the
total balance of the two loans at the Period end was €237,951 (2023:
€292,194).
Revenue earned from and operating costs for related parties of the Group are
as shown in the table below:
Six months ended 31 March 2024 Six months ended 31 March 2023 Year ended
£000
£000
30 September 2023
£000
Revenue 84,405 84,425 172,373
Operating costs 542 537 1,237
Investments in related parties of the Group and trade and other receivables
due from related parties are as shown in the table below:
31 March 31 March 30 September
2024
2023
2023
£000
£000
£000
Current asset investments 14,578 10,127 13,270
Trade and other receivables 31,290 35,593 33,660
16 Reconciliation of net cashflow from operating activities
This note should be read in conjunction with the Condensed Consolidated
Statement of Cash Flows. It provides a reconciliation of how profit before
tax, which is based on accounting rules, translates to cashflows.
31 March 31 March 30 September
2024
2023
2023
£000
£000
£000
Profit before taxation 24,560 21,396 52,106
Adjustments for:
Depreciation of property plant and equipment and amortisation 2,447 2,428 5,073
of intangible assets
Finance income (1,893) (1,457) (3,130)
Finance expense 1,453 4,879 5,271
Share-based payment charges 3,375 2,649 6,535
Loss on disposals of property, plant and equipment 34 - 31
Adjustment for statement of financial position movements:
Decrease/(increase) in trade and other receivables 3,314 (5,234) (3,774)
Decrease in trade and other payables (13,797) (18,458) (8,894)
Cash generated from operations 19,493 6,203 53,218
17 Group risks
The Group's principal risks remain as detailed within the Directors' Report of
the Group's 2023 Strategic Report.
Independent Review Report to Impax Asset Management Group plc
CONCLUSION
We have been engaged by Impax Asset Management Group plc ("the Company") to
review the condensed set of financial statements in the half-yearly report for
the six months ended 31 March 2024 which comprises the Condensed Consolidated
Income Statement and Condensed Consolidated Statement of Comprehensive Income,
the Condensed Consolidated Statement of Financial Position, the Condensed
Consolidated Statement of Changes in Equity, the Condensed Consolidated
Statement of Cash Flows and the related explanatory notes.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
report for the six months ended 31 March 2024 is not prepared, in all material
respects, in accordance with IAS 34 Interim Financial Reporting as adopted for
use in the UK and the AIM Rules.
BASIS FOR CONCLUSION
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410 Review of Interim Financial Information Performed by the
Independent Auditor of the Entity ("ISRE (UK) 2410") issued for use in the UK.
A review of interim financial information consists of making enquiries,
primarily of persons responsible for financial and accounting matters, and
applying analytical and other review procedures. We read the other information
contained in the half-yearly report and consider whether it contains any
apparent misstatements or material inconsistencies with the information in the
condensed set of financial statements.
A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and consequently does not enable
us to obtain assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not express an audit
opinion.
CONCLUSIONS RELATING TO GOING CONCERN
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention that causes us to believe that the Directors
have inappropriately adopted the going concern basis of accounting, or that
the Directors have identified material uncertainties relating to going concern
that have not been appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with
ISRE (UK) 2410. However, future events or conditions may cause the Group to
cease to continue as a going concern, and the above conclusions are not a
guarantee that the Group will continue in operation.
DIRECTORS' RESPONSIBILITIES
The half-yearly report is the responsibility of, and has been approved by, the
Directors. The Directors are responsible for preparing the half-yearly report
in accordance with the AIM Rules.
As disclosed in note 1 the latest annual financial statements of the Group
were prepared in accordance with international accounting standards in
conformity with the requirements of the Companies Act 2006 and the next annual
financial statements will be prepared in accordance with UK-adopted
international accounting standards. The Directors are responsible for
preparing the condensed set of financial statements included in the
half-yearly report in accordance with IAS 34 as adopted for use in the UK.
In preparing the condensed set of financial statements, the Directors are
responsible for assessing the Group's ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the Directors either intend to
liquidate the Group or to cease operations, or have no realistic alternative
but to do so.
OUR RESPONSIBILITY
Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the half-yearly report based on our review. Our
conclusion, including our conclusions relating to going concern, are based on
procedures that are less extensive than audit procedures, as described in the
Basis
for conclusion section of this report.
THE PURPOSE OF OUR REVIEW WORK AND TO WHOM WE OWE OUR RESPONSIBILITIES
This report is made solely to the Company in accordance with the terms of our
engagement. Our review has been undertaken so that we might state to the
Company those matters we are required to state to it in this report and for no
other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the Company for our review work,
for this report, or for the conclusions we have reached.
Alison Allen
for and on behalf of KPMG LLP
Chartered Accountants
15 Canada Square
London
28 May 2024
Alternative Performance Measures
The Group uses the following Alternative Performance Measures ("APMs").
ADJUSTED OPERATING PROFIT, ADJUSTED PROFIT BEFORE TAX AND ADJUSTED PROFIT AFTER TAX
These APMs exclude the impact of the following items:
· amortisation of intangible assets which arose on the
acquisition of Impax NH
· charges in respect of equity incentive scheme related to the
acquisition of Impax NH
· mark-to-market credits and charges in respect of national
insurance payable on share awards
· foreign exchange gains and losses on the retranslation of
monetary assets that are not linked to the operating performance of the Group
These performance measures are reported as they facilitate comparison with
prior periods and provide an appropriate comparison with our peers. Excluding
amortisation of intangible assets arising from acquisitions is consistent with
peers and therefore aids comparability. It also aids comparison to businesses
which have grown organically, and do not have such charges. Mark-to-market
credits and charges in respect of national insurance are excluded as they
arise due only to changes in the share price and therefore do not reflect the
operating performance of the Group. Foreign exchange gains and losses on the
retranslation of monetary assets are excluded as they are not linked to the
operating performance of the Group.
A reconciliation to the relevant IFRS terms is provided in note 3 of the
financial statements.
ADJUSTED OPERATING MARGIN
This is calculated as the ratio of adjusted operating profit to revenue. This
number is reported as it gives a good indication of the underlying
profitability of the Company and how this has changed year-on-year.
ADJUSTED DILUTED EARNINGS PER SHARE
This is calculated as the adjusted profit after tax divided by the diluted
number of shares used in the calculation of IFRS diluted earnings per share.
This is used to present a measure of profitability per share in line with
adjusted profits.
A reconciliation to IFRS diluted earnings per share is shown in note 3 of the
financial statements.
RUN RATE REVENUE AND RUN RATE ADJUSTED OPERATING PROFIT
Run rate revenue is the revenue that the Group would report if the AUM for the
year remained static at that shown at 31 March and fee rates were those at 31
March. Run rate revenue margin is the ratio of run rate revenue to AUM.
Run rate adjusted operating profit is the run rate revenue less adjusted
operating costs for the month of March extrapolated for 12 months. Adjustments
are made to exclude any one-off items.
Run rate numbers are reported as they give a good indication of the current
profitability of the Group.
CASH RESERVES
Cash reserves is the sum of cash and cash equivalents and cash held in money
market accounts or fixed term deposit accounts less cash held in research
payment accounts and cash held by consolidated funds.
The calculation of cash reserves is shown in note 13 to the financial
statements.
Cash reserves are reported as they give a good indication of the total cash
resources available to the Group.
***
Issued in the UK by Impax Asset Management Group plc, whose shares are quoted
on the Alternative Investment Market of the London Stock Exchange. Impax Asset
Management Group plc is registered in England & Wales, number 03262305.
AUM relates to Impax Asset Management Limited, Impax Asset Management (AIFM)
Limited, Impax Asset Management Ireland Limited and Impax Asset Management
LLC. Impax Asset Management Limited and Impax Asset Management (AIFM)
Limited are authorised and regulated by the Financial Conduct Authority and
are wholly owned subsidiaries of Impax Asset Management Group plc. Please note
that the information provided on www.impaxam.com and links from it should not
be relied upon for investment purposes.
Impax is trademark of Impax Asset Management Group Plc. Impax is a registered
trademark in the EU, US, Hong Kong and Australia. © Impax Asset Management
LLC, Impax Asset Management Limited and/or Impax Asset Management (Ireland)
Limited. All rights reserved.
(#_ftnref1)
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR SEUFWAELSEDIRecent news on Impax Asset Management
See all newsREG - Impax Asset Mgmnt - Holding(s) in Company
AnnouncementREG - Impax Asset Mgmnt - Half-year Report
AnnouncementRCS - Impax Asset Mgmnt - Investor Presentation of Interim Results
AnnouncementREG - Impax Asset Mgmnt - Notice of Results
AnnouncementREG - Impax Asset Mgmnt - Directorate Change
Announcement