REG - Impax Asset Mngmnt - Final Results <Origin Href="QuoteRef">IPX.L</Origin> - Part 3
01/12/2016 07:30
- Part 3: For the preceding part double click ID:nRSA6287Qb
calculation for diluted EPS is higher than the basic EPS
the basic number is used.
The weighted average number of shares is calculated as shown in the table below:
2016 2015
'000 '000
Issued share capital 127,749 127,749
Less own shares held not allocated to vested LTIP options (15,955) (12,616)
Weighted average number of ordinary shares used in the calculation of basic EPS 111,794 115,133
Additional dilutive shares re share schemes 10,690 10,090
Adjustment to reflect option exercise proceeds and future service from employees receiving awards (8,085) (9,314)
Weighted average number of Ordinary Shares used in the calculation of diluted EPS 114,399 115,909
The basic and diluted earnings per shares includes vested LTIP option shares on the basis that these have an inconsequential exercise price (1 pence or 0 pence).
8. DIVIDENDS
Dividends are recognised as a reduction in equity in the period in which they are paid or in the case of final dividends when they are approved by shareholders. The reduction in equity in the year therefore comprises the prior year final dividend and the current year interim dividend.
Dividends declared/proposed in respect of the year
2016 2015
pence pence
Interim dividend declared per share 0.5 0.4
Final dividend proposed per share 1.6 1.2
Special dividend proposed per share - 0.5
Total 2.1 2.1
The proposed final dividend of 1.6 pence will be submitted for formal approval at the Annual General Meeting to be held on March 8 2017. No special dividend is proposed for payment in respect of the current year. Based on the number of shares in issue at the year end and excluding own shares held the total amount payable for the final dividend would be £1,780,000.
Dividends paid in the year
2016 2015
£000 £000
Prior year final dividend - 1.2p, 1.1p 1,344 1,231
Prior year special dividend 561 -
Interim dividend - 0.5p, 0.4p 557 445
2,462 1,676
9. CURRENT ASSET INVESTMENTS
The Group makes seed investments into its own Listed Equity funds and also invests in its private equity funds. Where the funds are consolidated the underlying investments are shown in the table below as part of listed investments. Investments made in unconsolidated funds are shown as part of unlisted investments. Further details of when funds are consolidated are described in note 28 (A).
Unlisted investments Listed investments Total
£000 £000 £000
At 1 October 2014 5,192 6,448 11,640
Additions 124 5,092 5,216
Fair value movements 606 210 816
Repayments/disposals (2,593) (7,841) (10,434)
Foreign Exchange - 181 181
At 30 September 2015 3,329 4,090 7,419
Additions 116 7,216 7,332
Fair value movements 566 2,604 3,170
Repayments/disposals (2,443) (2,667) (5,110)
At 30 September 2016 1,568 11,243 12,811
Listed investments
Impax Environmental Leaders Fund
(consolidated)
On 23 January 2015 the Group launched
the Impax Environmental Leaders Fund
("IEL") and invested £3,000,000 from
its own resources in the fund. IEL
invests in listed equities using the
Group's leaders strategy. The Group's
investment represented more than 50 per
cent of IEL's Net Asset Value NAV form
the date of launch to 30 September 2016
and has been consolidated throughout
this period with its underlying
investments included in listed
investment in the table above.
Impax Global Equity Opportunities Fund
(consolidated)
On 23 December 2014 the Group launched
the Impax Global Equity Opportunities
fund ("IGEO") and invested £2,000,000
from its own resources in the fund.
IGEO invests in listed equities using
the Group's Global Equity Strategy.
The Group's investment represented more
than 50 per cent of IGEO's NAV from the
date of launch to 30 September 2015 and
the fund has been consolidated
throughout this period with its
underlying investments included in
listed investment in the table above.
Impax Food and Agriculture Fund
(consolidated)
On 1 December 2012 the Group launched
the Impax Food and Agriculture Fund
("IFAF") and invested £2,000,000 from
its own resources into the fund. The
IFAF invests in listed equities using
the Group's Food and Agriculture
Strategy. The Group's investment
represented more than 50 per cent of
the IFAF's NAV from the date of launch
to 30 September 2015 and has been
consolidated throughout this period
with its underlying investments
included in listed investments in the
table above.
Unlisted investments
Private equity funds (not consolidated)
The Group has invested in its private
equity funds, Impax New Energy
Investors LP and Impax New Energy
Investors II LP ("INEI" and "INEI II").
The investments represent 3.76 per
cent and 1.14 per cent respectively of
these funds. Further details of the
Group's commitments to these
partnerships are disclosed in note 25.
The fair value of the investments in
INEI II, which is recorded at a fair
value of £546,000 are calculated using
either the discounted cash flow method,
the cost of investment or agreed sale
prices. The key assumptions for the
discounted cash flow valuations of the
investments, which consists mainly of
investments in wind farms, is the
discount rate. The discount rate was
determined by reference to market
transactions for equivalent assets. A
rise of 1 per cent in the discount rate
applied to cash flows would result in a
decrease in profit before taxation and
net assets of £38,000. A 1 per cent
reduction in the discount rate would
result in a corresponding increase of
£44,000
in profit before taxation and net
assets.
The INEI I investment, which is
recorded at a fair value of £568,000,
consists at the year-end of investments
in Spanish solar farms which are
reliant on tariff subsidies. The fair
value of these investments were
determined using a discounted cash flow
approach. A rise of 1 per cent in the
discount rate applied to cash flows
would result in a decrease in profit
before taxation and net assets of
£64,000. A 1 per cent reduction in the
discount rate would result in a
corresponding increase of £71,000 in
profit before taxation and net assets.
These investments have been adversely
impacted by the significant retroactive
reforms of the Spanish energy markets
and covenants for loans held by the
investment have been breached. The
partnership is still in negotiations
with the relevant banks to restructure
the loans and is also in the process of
pursuing a claim for compensation from
the Spanish government. In the event
that the banks take possession of the
assets and the claims for compensation
are unsuccessful the investment would
be impaired in full.
10. CASH AND CASH EQUIVALENTS AND CASH
INVESTED IN MONEY MARKET FUNDS AND LONG
-TERM DEPOSITS
Cash and cash equivalents under IFRS
does not include deposits in money
market funds and cash held in deposits
with more than an original maturity of
three months. The Group however
considers its total cash reserves to
include these amounts. Cash held by
consolidated funds is not available to
the Group so is not included in cash
reserves. A reconciliation is shown
below:
2016 2015
£000 £000
Cash and cash equivalents 2,804 2,364
Cash invested in money market funds and 12,891 17,153
long-term deposit accounts
Less cash and cash equivalents held by (292) (193)
consolidated funds
Cash reserves 15,403 19,324
11. ORDINARY SHARES
2016 2015
Issued and fully paid £000 £000
127,749,098 ordinary shares of 1p each 1,277 1,277
12. OWN SHARES
Own shares Own shares
Number £000
At 1 October 2014 16,192,620 5,144
Satisfaction of option exercises (145,455) (511)
EBT 2012 purchases 2,245,455 1,158
At 30 September 2015 18,292,620 5,791
Satisfaction of option exercises (503,000) (207)
EBT 2012 purchases 3,598,219 1,547
At 30 September 2016 21,387,839 7,131
13. ACCOUNTING POLICIES
BASIS OF PREPARATION
These financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRSs") adopted for use by the European Union ("EU").
The Directors have, at the time of approving the financial statements, a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future and have concluded that it is appropriate to adopt the going concern basis in preparing the financial statements of the Group.
The financial statements have been prepared under the historical cost convention, with the exception of the revaluation of certain investments and derivatives being measured at fair value.
The financial statements are presented in sterling. All amounts have been rounded to the nearest thousand unless otherwise indicated.
This information is provided by RNS
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