15th May 2014 13:34
LONDON (Alliance News) - Impax Asset Management Group PLC reported an decrease in first-half pretax profit but said its assets under management rose by 16% over the course of the six-month period, driven by flows into its listed equity funds and accounts.
The AIM-listed investment manager, which targets opportunities created by the scarcity of natural resources and growing demands for cleaner and more efficient products and services, said it made a GBP1.4 million pretax profit in the six months ended March 31, compared with GBP1.5 million for the corresponding period a year earlier. Revenue increased by GBP1.2 million to GBP9.9 million, while operating costs widened by GBP406,000 to GBP7.2 million. However, Impax took a GBP707,000 hit due to charges associated with its share-based incentive schemes. Overall, charges due to employment inventive arrangement schemes increased from GBP363,000. Fair value losses on investments and hedges amounted to GBP624,000, a swing from the comparative period's GBP42,000 gain.
"The increase in operating earnings is offset by tax benefits in 2013 not being repeated during the period, an increased employer's National Insurance provision due to the rise in the company's share price and a reduction to the fair value of the company's interest in Impax New Energy Investors," Chief Executive Ian Simm said in a statement.
Assets under management increased to GBP2.55 billion, from GBP2.20 billion over the course of the six-month period. As of April 30, assets under management amounted to GBP2.54 billion. The increase over the first-half was due to inflows into Impax's listed equity funds and accounts of GBP322.0 million and outflows of GBP133.0 million. Impax said it has continued to benefit from strong inflows from continental Europe, particularly into the funds and accounts run for BNP Paribas, while interest from North American clients continues to build.
"Our target markets made good progress in the period, with the renewable energy, water and pollution control sub-sectors all making a significant contribution. More than half the increase in our assets under management is attributable to net inflows. These were particularly strong from clients in Europe and the US, where we also have a promising mandate pipeline," Simm said.
"We are announcing the initiation of an interim dividend of 0.3 pence per share for the period. The board also intends to maintain the final dividend in line with last year," Simm added.
Shares in Impax Asset Management Group were trading 0.90% lower at 55.00 pence per share Thursday.
By Samuel Agini; [email protected]; @samuelagini
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