REG - Impax Asset Mgmnt - Final Results
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RNS Number : 5345J Impax Asset Management Group plc 01 December 2025
Impax Asset Management Group plc
Results for the year ended 30 September 2025
London, 1 December 2025 - Impax Asset Management Group plc ("Impax" or the
"Company"), the specialist investor focused on the transition to a more
sustainable global economy, today announces final audited results for the year
ending 30 September 2025 (the "Period").
Business highlights
· Assets under management ("AUM") £26.1 billion (2024: £37.2 billion)
· Net flows of (£13.0 billion) (2024: (£5.8 billion))
· Challenging market for active investment managers
· Net outflows stabilising: improving trend in second half of the
financial year
· Impax's equity strategies offer compelling fundamentals and
valuations
· Positive momentum towards strategic priorities: closed SKY Harbor
acquisition
· Reduced cost base and headcount without impacting capabilities or
growth plans
· Financial strength maintained, updated dividend policy and ongoing
£10 million share buyback (89% completed to date)
Financial highlights: Key Performance Indicators
· Revenue decreased by 16.6% to £141.9 million (2024: £170.1 million)
· Adjusted operating profit decreased by 36.2% to £33.6 million (2024:
£52.7 million)
· Adjusted operating margin of 23.7% (2024: 31.0%)
· IFRS Profit before tax decreased by 43.1% to £27.8 million (2024:
£49.0 million)
· Adjusted diluted earnings per share decreased by 33.9% to 21.3p
(2024: 32.2p)
· IFRS diluted earnings per share decreased by 44% to 15.8p (2024:
28.2p)
· Proposed final dividend of 8.0p per share bringing total dividend per
share to 12.0p (2024: 27.6p) representing 55.7% of adjusted profit after tax,
in line with stated policy
· Strong balance sheet, with cash reserves of £64.7 million (2024:
£90.8 million)
Simon O'Regan, Chair, commented:
"Followers of Impax will be aware of the challenging first two quarters that
the business experienced during the Period. The acquisition of an additional
fixed income business unit, a stabilisation of net outflows and positive
market performance in the second half of the year contributed to AUM ending
the Period at £26.1 billion (30 September 2024: £37.2 billion).
"The Board's approach to capital management remains firmly aligned to the
Company's strategic priorities. In May we announced an update to our capital
allocation policy, which included a confirmation of our dividend policy and
launching a £10 million share buy-back programme, which is due to conclude at
the end of December 2025.
"We believe that despite the challenges of the first half of the year, Impax's
long-term investment theme, strategic progress and its financial strength
position the business for future growth."
Ian Simm, Chief Executive, added:
"After a challenging first half, the second half of Impax's financial year has
been much more positive. Assets under management and advice expanded
moderately from £25.3 billion on 31 March 2025 to close the financial year
ending 30 September 2025 at £26.1 billion, having initially fallen from
£37.2 billion on 1 October 2024.
"The reduction in AUM led to lower annual revenues of £141.9 million (2024:
£170.1 million) and a decrease in adjusted operating profit to £33.6 million
(2024: £52.7 million). In response, we took steps to resize our cost base:
adjusted annual operating costs fell to £108.2 million, down from £117.4
million in the prior year.
"During the Period we made significant progress towards our key strategic
priorities. In particular, the completion of the acquisition of a business
unit specialising in short-duration high-yield strategies enhances our ability
to serve clients across a broader range of investment solutions which
currently cover listed equities, fixed income and private markets.
"For around three years, equity markets have been driven largely by AI-related
and other 'momentum' stocks, while investors are contending with greater
uncertainty. Against this backdrop, we continue to invest in companies
harnessing long-term, durable growth trends such as demographic shifts,
technological advancement, and rising consumption. Stocks of these companies
have often lagged generic indices, but many currently trade at compelling
valuations with strong fundamentals.
"We remain highly confident in the outlook for Impax, underpinned by our
compelling investment thesis and differentiated competitive positioning. The
economic case for the transition to a more sustainable economy continues to
build, as consumers increasingly prefer more efficient, less polluting goods
and services.
"Despite the challenging backdrop, the Company remains profitable, debt-free,
and well capitalised, with net assets of £115.2 million and a strong balance
sheet."
Ends
Media Enquiries:
Impax Asset Management Group plc
Ian Simm, Chief Executive +44 (0)20 3912 3000
Paul French, Head of Corporate Communications +44 (0)20 3912 3032
p.french@impaxam.com (mailto:p.french@impaxam.com)
Lansons, Communications Adviser
Tom Baldock +44 (0)20 7418 8900
Ronan Friel
impax@lansons.com (mailto:impax@lansons.com)
Peel Hunt LLP, Nominated Adviser and Joint Broker
Andrew Buchanan +44 (0)20 7418 8900
Dan Webster
Thomas Philpott
Berenberg, Joint Broker
James Felix +44 (0)203 207 7800
John Welch
Dan Gee-Summons
LEI number: 213800AJDNW4S2B7E680
About Impax Asset Management
Founded in 1998, Impax is a specialist asset manager, with
approximately £26.1 billion of assets under management as at 30 September
2025 in both listed and private markets strategies, focused on 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.
www.impaxam.com (http://www.impaxam.com)
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
(http://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 UK, EU, US, Hong Kong, Canada, Japan and Australia. © Impax
Asset Management LLC, Impax Asset Management Limited and/or Impax Asset
Management (Ireland) Limited. All rights reserved.
Chief Executive's Report
After a challenging first half ("H1"), the second half ("H2") of Impax's
financial year has been much more positive. Assets under management and advice
(AUM) expanded moderately from £25.3 billion on 31 March 2025 to close the
financial year ("the Period") ending 30 September 2025 at £26.1 billion,
having initially fallen from £37.2 billion on 1 October 2024.
Impax continues to pursue a strategy of providing institutional asset owners
and market intermediaries such as wealth managers with a specialist investment
service focused on the opportunities and risks arising from the transition to
a more sustainable economy.
As set out below, despite the uncertainty of policy support in some areas, the
range of such opportunities has continued to expand, with many excellent
prospects; meanwhile, multiple asset managers have retreated from this space,
providing us with an improved competitive position.
For much of the Period many of our strategies outperformed their generic
benchmarks. Between January and June 2025, our listed equities strategies
benefited from a broadening of market performance beyond the US-listed
mega-cap stocks that have dominated in recent years. In the final quarter,
however, investor sentiment shifted back towards stocks with higher earnings
volatility; this environment was less favourable for our investment approach,
which emphasises high-quality companies with sustainable earnings, making
relative outperformance more challenging.
AUM Movement for the period
Listed equities Fixed income Private markets Total firm
£m £m £m £m
Total AUM at 30 September 2024 35,021 1,478 689 37,187
Net flows (10,022) (100) (83) (10,204)
Performance, market movement, and FX (1,697) 44 3 (1,651)
Total AUM at 31 March 2025 23,302 1,422 609 25,332
Acquired assets - 1,079 - 1,079
Net flows (2,625) (130) (1) (2,755)
Performance, market movement, and FX 2,315 58 26 2,399
Total AUM at 30 September 2025 22,993 2,429 634 26,055
During the Period we made significant progress towards our key strategic
priorities: in particular strengthening our listed equities proposition and
expanding our fixed income and private markets capabilities to diversify our
product offering. In April, we completed the acquisition of the European
assets of SKY Harbor Capital Management, a fixed income business unit
specialising in short-duration high-yield strategies. This acquisition
enhances our ability to serve clients across a broader range of investment
solutions.
Despite these positive developments, we experienced net outflows in both
halves of the financial year: £10.2 billion in H1 and £2.8 billion in H2.
These outflows led to lower revenues of £141.9 million (2024: £170.1
million) and a decrease in adjusted operating profit to £33.6 million (2024:
£52.7 million).
In response to the drop in AUM since the start of the Period, we took steps to
resize our cost base: adjusted operating costs fell to £108.3 million, down
from £117.4 million in the prior year.
Despite the challenging backdrop, the Company remains profitable, debt-free,
and well capitalised, with net assets of £115.2 million. We continue to
maintain a strong balance sheet, positioning us positively for future
expansion.
As Simon O'Regan has noted in his Chair's Introduction, we updated our capital
allocation approach in May. This reaffirmed our dividend policy of paying out
at least 55 per cent. of adjusted profit after tax, alongside a rebalanced
split between interim and final dividends.
We also announced a £10 million share buyback programme, further
demonstrating our commitment to returning surplus capital to shareholders.
MARKET DEVELOPMENTS
Overall, market sentiment during the Period was characterised by rapid shifts
in tone - from optimism to uncertainty, then to caution and eventual calm. Key
drivers included the ever-dominant AI theme and the strong performance of
'momentum' stocks, further evolving trade dynamics, and central bank policy
uncertainty.
At the start of the Period, global markets initially rose sharply at the
prospect of a pro-business US administration, but they soon turned volatile as
investors struggled to interpret the administration's policy signals.
Further moments of volatility included the disruptive threat to the AI
industry from Chinese company DeepSeek and the so-called 'Liberation Day' in
April, which triggered a sudden collapse in investor sentiment, reflecting
fears of a US tariff-induced recession.
More recently, markets staged a swift recovery as those concerns began to
ease, and investors reassessed the likelihood of severe economic fallout.
Risk assets, including equities and high yield credit, performed strongly in
the second half of the Period, supported by easing US monetary policy.
Meanwhile, despite adverse political pressure in a small number of areas, the
economic case for the transition to a more sustainable economy continues to
build, as consumers increasingly prefer more efficient, less polluting goods
and services.
Further exceptional weather events this year have included record-breaking
summer temperatures in Europe and devastating wildfires, particularly in North
America, raising demand for resilient infrastructure, specialised insurance
and weather forecasting technology. Meanwhile, louder climate change denialism
appears irrational and counter-productive.
Deliveries of electric vehicles rose again, hitting 26% of global car sales
this year, while renewable energy became the majority source of electricity
worldwide for the first time, not least in response to the rapidly expanding
demand from the energy-intensive data centres on which AI depends.
With this backdrop, we continue to be optimistic about the investing landscape
for our strategies.
INVESTMENT PERFORMANCE & TEAM
Impax offers investment strategies covering thematic equities, core equities,
fixed income and private markets.
In listed equities, we typically invest in 'quality' companies and, relative
to generic benchmarks, have a tilt towards mid-cap stocks. After a
particularly difficult first quarter characterised by extreme market
concentration in US mega-cap technology stocks, in the second and third
quarters of the Period (i.e. between January and June 2025), our listed
equities strategies benefitted from broader markets. However, in the latter
stages of the fourth quarter, markets unexpectedly narrowed again, impacting
our relative performance.
In fixed income, the relative and absolute performance has been positive, with
five out of seven of our principal strategies outperforming their benchmarks
over the Period and 62% of our fixed income strategies' AUM have outperformed
their benchmarks over three years.
In private markets, we continue to make good progress in exiting our third
fund, with 51% of the portfolio sold. The fourth fund, which had raised €459
million by early 2024, has 13 investments, spread across seven countries,
notably France, Germany and Poland and seven technologies, for example solar
power and electric vehicle charging.
The team continues to seek additional capital to make the most of our pipeline
of investment opportunities in this area.
On 1 October 2025, i.e. after the Period end, Charles French became Chief
Investment Officer (CIO), Listed Investments. Charlie, who joined Impax in
2022, was previously Co-CIO alongside Bruce Jenkyn-Jones, who will retire from
the Company in June 2026. Charles has made a significant contribution to
developing our investment platform, including the launch of new listed
equities products, building out our research capability and overseeing the
expansion of our fixed income investment platform as we diversify our product
offering.
FIXED INCOME PLATFORM
In April, we closed the acquisition of the European assets of SKY Harbor
Capital Management, giving us additional investment management capability in
short-duration high-yield fixed income, as well as an additional £1.1 billion
of AUM.
This acquisition adds to our established base in fixed income and complements
the Copenhagen-based team who joined us in 2024 through our acquisition of
Absalon Corporate Credit. Our fixed income team now comprises 23 investment
professionals in the US, Europe and Asia managing strategies with an AUM of
ca. £2.4 billion.
CLIENTS & DISTRIBUTION
Our Client Group comprises sales, client service, product development, and
marketing professionals. The team continues to focus on supporting the growth
of our own-label fund ranges in Europe and the US, while serving intermediary
and institutional investors globally. At the same time, we maintain strong
relationships with our network of trusted distribution partners, who play a
vital role in extending our geographic reach.
During the Period, we recorded several notable inflows. These included a
significant new institutional 'core equities' mandate in Europe, additional
flows via a Scandinavian institutional client, and allocations into the Global
Social Leaders strategy through our UK wealth channel.
In North America, we continued to gain traction through our Canadian
distribution partners, including inflows into the Global Opportunities
strategy. In the US, we are encouraged by the progress in our intermediary
channel, notably with the major wealth managers who typically have a national
client base.
Redemptions during the Period were dominated by the loss of our two accounts
with St James's Place, reflecting their decision to switch to portfolios with
a lower tracking error versus the generic index. The outflow of £6.2 billion,
represented approximately 15% of our total AUM and around 8% of our annualised
revenue as at the end of January 2025.
BNP Paribas Asset Management (BNPP AM) now stands as our largest distribution
partner. It represents 25% of revenue and also continues to be our largest
shareholder, holding approximately 14% of our issued share capital as at the
end of the Period.
We have continued to observe a relative slowdown in net outflows from BNPP AM
over the last 18 months. Net outflows in the second half of the Period were
£905 million, compared to £1.2 billion in the first half and £1.0 billion
in H2 last year.
By the end of the Period, thematic strategies accounted for 64% of the
Company's total AUM (2024: 61%) and core equities strategies represented 24%
(2024: 34%).
In December 2024, we expanded our UCITS range with the launch of the Global
Emerging Markets Opportunities Fund. After the Period end, we announced the
establishment in early 2026 of our first exchange-traded fund (ETF) in the US
- the Global Sustainable Infrastructure Fund. We expect to introduce
additional ETFs in the US, given the tax advantages and increasing popularity
of this product type among investors in that market.
BRAND DIFFERENTIATION
We continue to build on our brand leadership position on the topic of the
transition to a more sustainable economy. During the Period this included
active participation by members of the Impax Sustainability Centre at Climate
Weeks in New York and London, where our activity levels surpassed previous
campaigns. Our leadership was also recognised by awards won during the Period.
In January Impax was named 'Best ESG & Sustainability Boutique/Specialist'
by MainStreet Partners. In March, the Impax Small Cap Fund in the United
States was presented with the 'Sustainability 2025 Asset Manager Award' by
Envestnet.
OPERATIONS: MANAGING COSTS AND EFFICIENCY
We continue to pay close attention to the efficiency of the business and the
management of costs in the context of providing an excellent service to
clients. Having expanded our business rapidly between 2019 and 2023, we have
been able to identify cost savings through the optimisation of team structures
and business processes. As a result of this review, during the Period we
removed ca. 45 roles (ca. 15% of our headcount), without materially reducing
our capabilities or growth prospects. With the addition of seven new
colleagues through the SKY Harbor acquisition, at the end of the Period our
headcount was 275, down from 315 on 30 September 2024.
ATTRACTING AND DEVELOPING OUR TALENT
Impax's mission and values play an important role in attracting and retaining
the best talent. We are careful never to take our culture for granted and work
hard to engage our colleagues, particularly during moments when the business
faces external operating challenges. I am proud of the resilience that our
teams have shown over the last year.
OUTLOOK
Impax's long-term success is founded on a simple but powerful insight: the
global economy is undergoing a profound transition towards greater
sustainability, as consumers demand cleaner, more efficient goods and
services, while businesses and governments are for example increasingly
focused on building resilience against the physical risks of climate change.
The investment philosophy based on these trends is both rational and enduring.
Although short-term political cycles and waves of technological innovation can
affect markets significantly, our 27 years' experience have reinforced our
conviction that the transition to a more sustainable economy represents a
long-term, structural shift and a continuing source of investment
opportunity.
For around three years equity markets have been driven largely by AI-related
and other 'momentum' stocks, while investors are contending with greater
uncertainty and weaker confidence among consumers and corporations, influenced
by US-led tariffs and ongoing geopolitical tensions.
Against this backdrop, our portfolios maintain exposure to a range of
companies that are harnessing long-term, durable growth trends such as
demographic shifts, technological advancement, and rising consumption.
With parallels to the markets of 1999 and 2007, stocks of many of these
companies have lagged generic indices, delivering disappointing financial
returns in the near-term but offering a compelling opportunity to patient
investors.
There are plentiful signs that the market is broadening, a situation in which
our investment style should deliver strong relative returns. We remain
confident in the outlook for the Company, underpinned by our compelling
investment thesis and differentiated competitive positioning. Encouragingly,
at a time when many investment managers are retreating from our area of
expertise, we are seeing growing interest from asset owners who want to
partner with a specialist firm such as Impax.
While I am proud of our financial resilience, cost discipline, and the
progress we've made towards our strategic goals, it is ultimately our
specialist expertise and focused approach that position us for continued
growth into the future.
Ian Simm
Chief Executive
28 November 2025
Financial Review
Despite a year marked by market volatility and client outflows, the Group has
demonstrated resilience and agility in navigating a challenging environment.
I am pleased to present our financial results for the year ended 30 September
2025. These results reflect the headwinds faced during the Period, yet also
highlight the Group's underlying financial strength and ability to respond
decisively and maintain operational strength. Our continued focus on
operational efficiency and rigorous cost management have helped mitigate the
impact of reduced revenues and positioned us very well for future recovery and
growth.
Through a disciplined capital allocation strategy, we initiated a share
buyback programme, underscoring our commitment to enhancing shareholder value
and confidence in the long-term prospects of the business.
To provide a clearer view of our underlying performance and to facilitate
meaningful comparisons with prior periods and industry peers, we have
presented adjusted financial measures alongside International Financial
Reporting Standards ("IFRS") metrics.
Financial highlights for financial year 2025 versus financial year 2024
2025 2024
AUM £26.1bn £37.2bn
Revenue £141.9m £170.1m
Adjusted operating costs £108.2m £117.4m
Adjusted operating profit £33.6m £52.7m
Adjusted profit before tax £34.3m £55.7m
Adjusted profit after tax £27.3m £41.6m
Adjusted diluted earnings per share 21.3p 32.2p
Cash reserves £64.7m £90.8m
Dividend per share 4.0p interim + 8.0 p final 4.7p interim + 22.9 p final
2025 2024
IFRS operating costs £114.5m £121.1m
IFRS operating profit £27.4m £49.0m
IFRS profit before tax £27.8m £49.0m
IFRS profit after tax £20.3m £36.5m
IFRS diluted earnings per share 15.8p 28.2p
Revenue
Revenue declined by £28.2 million to £141.9 million (2024: £170.1 million)
primarily due to a reduction in average AUM driven by net outflows of £13.0
billion, partially offset by positive market movements and the acquisition in
April of SKY Harbor Capital Management.
No adjustments have been made to revenue to arrive at adjusted
operating profit.
Operating costs
Adjusted operating costs fell to £108.2 million (2024: £117.4 million),
reflecting our proactive cost control measures. At the same time we continue
to invest strategically in areas that support our long-term growth,
particularly fixed income and operational resilience.
IFRS operating costs of £114.5 million (2024: £121.1 million) include
additional charges and credits, principally acquisition-related costs, costs
associated with the redundancy programmes, the amortisation of intangible
assets and equity incentive scheme charges arising on acquisitions and
national insurance charges and credits on share options and restricted shares
which is payable based on the share price when an option is exercised or
restricted shares vest.
Profits and operating margin
Adjusted operating profit decreased to £33.6 million (2024: £52.7 million),
with the adjusted operating margin at 23.7% (2024: 31.0%). This reflects the
revenue decline, partially offset by cost savings.
IFRS operating profit for the Period decreased to £27.4 million (2024: £49.0
million) reflecting the reduction in revenue discussed above. IFRS profit
before tax of £27.8 million (2024: £49.0 million) includes unrealised
foreign exchange losses of £0.2 million (2024: £3.0 million) on the
retranslation of monetary assets held in foreign currencies that are not
linked to the operating performance of the Group. The reduction in foreign
exchange losses is attributed to the capitalisation of a US Dollar
denomination loan between the Company and one of the US Subsidiaries in the
prior Period.
profit after Tax
Adjusted profit after tax fell to £27.3 million (2024: £41.6 million) whilst
the IFRS profit after tax fell to £20.3 million (2024: £36.5 million). The
IFRS effective tax rate has increased to 27.1% (2024: 25.5%). The increase in
effective tax rate is a result of the fall in share price over the year which
has reduced the deferred tax asset associated with unvested share awards.
Earnings per share
Adjusted diluted earnings per share decreased to 21.3 pence (2024: 32.2
pence). IFRS diluted earnings per share decreased to 15.8 pence (2024: 28.2
pence). The adjusted and IFRS earnings per share has reduced as a result of
the lower profits in the Period which has been slightly offset by a lower
number of ordinary shares in issue arising from the share buyback programme.
For further detail on earnings per share, refer to note 14 in Financial
Statements.
Cash management
Group operations remain cash generative, with cash balances of £64.7 million
(2024: £90.8 million) and with no debt. Cash balances have reduced in the
Period due to a reduction in cash generated from operations net of the prior
year dividend, £6.9m spent on own share acquisition (encompassing both the
share buyback and the EBT share purchases) and £4.4m spent on the acquisition
of SKY Harbor Capital Management.
EBT Share management
The Group's Employee Benefit Trust purchases shares (subject to trustee's
discretion), using funding provided by the Company. The EBT hold shares for
Restricted Share awards until they vest or to satisfy share option exercises.
During the Period, the EBT purchased 1.7 million ordinary shares. At the
Period end the EBT held a total of 5.9 million shares, 3.1 million of which
were held for Restricted Share awards ("RSS") and exercised options leaving up
to 2.8 million available for option exercises, current restricted share plan
("RSP") awards granted and future share awards. There were 3.2 million options
outstanding at the Period end, of which 240,000 were exercisable.
Share buyback
Reflecting a healthy capital surplus and consistent with our capital
allocation priorities in May 2025, the Group initiated its first ever share
buyback programme of up to £10m. At 30 September, the Group had re-purchased
and cancelled 1.9 million shares for a total consideration of £3.5m. At the
date of signing the report, a further 2.9 million shares were purchased and
cancelled for consideration of £5.3 million. It is anticipated the share
buyback programme is completed in full before it concludes on 31 December
2025.
Dividends
The Company paid an interim dividend of 4.0 pence per share in July 2025
(2024: 4.7p). Despite the challenges faced, the Company remains in robust
financial health and The Board has therefore decided to recommend a final
dividend of 8.0 pence (2024: 22.9 pence) taking the total dividend for 2025 to
12.0 pence (2024: 27.6 pence). The total dividend for the year represents
55.7% of our adjusted profit which is in line with our policy. This reflects
our balanced approach to capital management, rewarding shareholders while
retaining flexibility to invest in future growth.
This dividend proposal will be submitted for formal approval by shareholders
at the Annual General Meeting on 5 March 2026. If approved, the dividend will
be paid on or around 20 March 2026. The record date for the payment of the
proposed dividend will be 20 February 2026 and the ex-dividend date will be 19
February 2026.
The Company operates a dividend reinvestment plan ("DRIP"). The final date for
receipt of elections under the DRIP will be 27 February 2026. For further
information and to register and elect for this facility, please visit
www.signalshares.com and search for information related to the Company.
Going concern
The Financial Reporting Council requires all companies to perform a rigorous
assessment of all the factors affecting the business when deciding to adopt a
'going concern' basis for the preparation of the accounts.
The Board has made an assessment covering a period of at least 12 months from
the date of approval of this report which indicates that, taking account of a
reasonably possible downside in relation to asset outflows, market performance
and costs, the Group will have sufficient funds to meet its liabilities as
they fall due for that period.
The Group has high cash balances and no debt and, at the Period end market
levels, 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 the issuance of shares to cover
share option exercises/restricted share awards (rather than purchasing
shares). The Directors therefore have a reasonable expectation that the Group
has adequate resources to remain in operational existence for the foreseeable
future and have continued to adopt the 'going concern' basis in preparing the
financial statements.
Karen Cockburn
Chief Financial Officer
28 November 2025
Consolidated Income Statement
For the year ended 30 September 2025
Notes 2025 2024
£000 £000
Revenue 7 141,873 170,113
Operating costs 8 (114,457) (121,086)
Finance income 11 2,876 3,946
Finance expense 12 (2,455) (4,008)
Profit before taxation 27,837 48,965
Taxation 13 (7,543) (12,488)
Profit after taxation 20,294 36,477
Earnings per share
Basic 14 15.9p 28.5p
Diluted 14 15.8p 28.2p
Dividends per share
Interim dividend paid and final dividend declared for the year 15 12.0p 27.6p
Adjusted results are provided in Note 5.
Consolidated Statement of Comprehensive Income
For the year ended 30 September 2025
Notes 2025 2024
£000 £000
Profit for the year 20,294 36,477
Exchange differences on translation of foreign operations 391 (1,644)
Total other comprehensive income 391 (1,644)
Total comprehensive income for the year attributable to equity holders of the 20,685 34,833
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.
Consolidated Statement of Financial Position
As at 30 September 2025
Company No: 03262305
2025 2024 (restated)(1)
Notes £000 £000 £000 £000
Assets
Goodwill 16 12,747 11,869
Intangible assets 17 12,229 11,244
Property, plant and equipment 18 5,922 7,879
Investments 20 4,570 4,381
Deferred tax assets 13 3,249 4,222
Total non-current assets 38,717 39,595
Trade and other receivables 19 32,789 36,870
Investments 20 12,245 11,612
Current tax asset 2,923 1,208
Cash invested in money market funds 22 45,151 67,797
Cash and cash equivalents 22 22,879 25,300
Total current assets 115,987 142,787
Total assets 154,704 182,382
Equity and liabilities
Ordinary shares 24 1,307 1,326
Share premium 9,291 9,291
Capital redemption reserve 19 -
Merger reserve 2,975 1,533
Exchange translation reserve 1,687 1,296
Retained earnings 99,940 117,677
Total equity 115,219 131,123
Trade and other payables 23 33,114 42,687
Lease liabilities 18 1,967 2,084
Current tax liability 49 787
Total current liabilities 35,130 45,558
Trade and other payables 23 578 -
Lease liabilities 18 3,777 5,701
Deferred tax liability 13 - -
Total non-current liabilities 4,355 5,701
Total equity and liabilities 154,704 182,382
Consolidated Statement of Changes in Equity
For the year ended 30 September 2025
For the year ended Notes Share capital Share premium Capital redemption reserve Merger reserve Exchange translation reserve Retained earnings Total Equity
30 September 2024
£000 £000 £000 £000 £000 £000 £000
1 October 2024 1,326 9,291 - 1,533 1,296 117,677 131,123
Transactions with owners of the Company:
Dividends paid 15 - - - - - (35,289) (35,289)
Cash received on option exercises - - - - - 350 350
Merger of US subsidiaries 20 - - - 1,442 - (1,442) -
Tax charge on long-term incentive schemes - - - - - (68) (68)
Share-based payment charges 10 - - - - - 5,327 5,327
Acquisition of own shares and share buybacks - - - - - (6,909) (6,909)
Cancellation of share buybacks (19) - 19 - - - -
Total transactions with owners of the Company (19) - 19 1,442 - (38,031) (36,589)
Profit for the year - - - - 20,294 20,294
Other comprehensive income:
Exchange differences on translation of foreign operations - - - - 391 - 391
Total other comprehensive Income - - - - 391 - 391
30 September 2025 1,307 9,291 19 2,975 1,687 99,940 115,219
For the year ended Notes Share capital Share premium Capital redemption reserve Merger reserve Exchange translation reserve Retained earnings Total Equity
30 September 2024
£000 £000 £000 £000 £000 £000 £000
1 October 2023 1,326 9,291 - 1,533 2,940 118,868 133,958
Transactions with owners of the Company:
Dividends paid 15 - - - - - (36,301) (36,301)
Cash received on option exercises - - - - - 359 359
Tax credit on long-term incentive schemes - - - - - 19 19
Share-based payment charges 10 - - - - - 6,696 6,696
Acquisition of own shares - - - - - (8,441) (8,441)
Total transactions with owners of the Company - - - - - (37,668) (37,668)
Profit for the year - - - - - 36,477 36,477
Other comprehensive income:
Exchange differences on translation of foreign operations - - - - (1,644) - (1,644)
Total other comprehensive Income - - - - (1,644) - (1,644)
30 September 2024 1,326 9,291 - 1,533 1,296 117,677 131,123
Consolidated Cash Flow Statement
For the year ended 30 September 2025
Notes 2025 2024
£000 £000
Operating activities
Cash generated from operations 27 32,914 63,624
Corporation tax paid (9,094) (12,988)
Net cash generated from operating activities 23,820 50,636
Investing activities
Asset and equity purchase of SKY Harbor net of cash acquired (4,449) -
Acquisition of property, plant & equipment and intangible assets (481) (1,074)
Redemptions from unconsolidated Impax funds 1,591 4,824
Investments into unconsolidated Impax funds (2,018) (5,998)
Settlement of investment related hedges (1,309) (1,167)
Earn-out payment (49) -
Investment income received 2,876 3,305
Decrease/(increase) in cash held in money market funds 22,646 (14,255)
Net cash generated from/(used by) investing activities 18,807 (14,365)
Financing activities
Payment of lease liabilities (2,612) (1,605)
Acquisition of own shares and share buybacks (6,909) (8,441)
Cash received on exercise of Impax staff share options 350 359
Dividends paid (35,289) (36,301)
Net cash used by financing activities (44,460) (45,988)
Net decrease in cash and cash equivalents (1,833) (9,717)
Cash and cash equivalents at beginning of year 25,300 37,963
Effect of foreign exchange rate changes (588) (2,946)
Cash and cash equivalents at end of year 22 22,879 25,300
Cash and cash equivalents under IFRS does not include cash invested in money
market funds. The Group, however, considers its total cash reserves to include
these amounts. Cash held in Research Payment Accounts ("RPAs") are not
included in cash reserves (see Note 22). There are no significant changes to
liabilities arising from financing activities.
Movements on cash reserves are shown in the table below:
At the beginning of the year Cash flow Foreign exchange At the end of the year
£000 £000 £000 £000
Cash and cash equivalents 25,300 (1,833) (588) 22,879
Cash invested in money market funds and long-term deposit accounts 67,797 (22,646) - 45,151
Cash in RPAs (2,297) (1,062) - (3,359)
Total Group cash reserves 90,800 (25,541) (588) 64,671
Notes to the Financial Statements
1 REPORTING ENTITY
Impax Asset Management Group plc (the "Company") is incorporated and domiciled
in the UK and is listed on the Alternative Investment Market ("AIM"). These
consolidated financial statements comprise the Company and its subsidiaries
(together referred to as the "Group").
2 BASIS OF PREPARATION
These financial statements have been prepared in accordance with international
accounting standards in conformity with the requirements of the Companies Act
2006 ("IFRS") and applicable law. 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.
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 inflows, 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, at the Period-end market levels, 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.
3 USE OF JUDGEMENTS AND ESTIMATES
In preparing these financial statements management has made estimates that
affect the reported amounts of assets, liabilities, income and expenses.
Actual results may differ from estimates. Revisions to estimates are
recognised prospectively.
The Group has recognised that the recoverability of goodwill and intangible
assets (Note 16 and 17), accounting treatment of business combinations (Note
4) and recoverability of Parent Company's investment in subsidiaries as areas
of significant judgement and/or estimates.
Other key areas that include judgement and/or estimates are set out in Notes
9, 10 and 13.
4 Acquisition of SKY Harbor Capital Management
On 1 April 2025, the Group's Parent Company, Impax Asset Management Group plc,
and the Group's US subsidiary, Impax Asset Management LLC, completed
acquisition of 100% of the issued and outstanding share capital in SKY Harbor
Capital Management GmbH ("SKY"). Along with the rights to SKY's existing fixed
income management contracts, certain key staff within SKY including existing
portfolio managers have joined the Impax Group.
The Group has determined that the acquisition meets the definition of a
business combination in accordance with IFRS 3 Business Combinations and has
accounted for the transaction using the acquisition method. Impax Asset
Management LLC is deemed the acquiror for accounting purposes.
This acquisition furthers Impax's strategy to build scale and capabilities
within the Group's fixed income business. The key staff joining the Group
bring extensive expertise and a proven track record in short-duration high
yield investing. Their capabilities enhance the Group's existing offerings and
support the delivery of a broad range of credit market solutions.
An analysis of the consideration paid, the recognised amounts of assets
acquired and the resulting goodwill is set out below. The acquisition was
funded through the Group's existing cash reserves.
Purchase consideration
Under the terms of the asset and equity purchase agreement, the purchase
consideration for SKY was made up of an upfront payment of $6.3m (£4.9m) net
of balance sheet adjustments for working capital and contingent consideration
payment that is dependent on the annualised Run-Rate Management Fee Revenue
(RMR) being in excess of 75% in 1 year following the acquisition date. An
assessment of the RMR was performed on the acquisition date as well as a
preliminary assessment of the RMR at Period-end and it was determined that no
contingent consideration is payable as such the fair value of contingent
consideration at acquisition date is zero. In order to achieve an RMR of 75%,
the AUM of the acquired funds would have to rise to $1.5bn by 31 March 2026
which is deemed highly unlikely as net outflows have been forecasted in line
with the timeframe planned to integrate the SKY business.
The fair value of the purchase consideration is as follows:
£000
Cash consideration 4,878
Contingent consideration -
Total consideration 4,878
Identified assets and liabilities
The Group has a 12-month measurement period from the date of acquisition to
estimate the fair value of acquired assets and liabilities. The fair value
exercise was complete as at the acquisition date, the fair values are set out
below:
£000
Cash and cash equivalents 429
Trade and other receivables 11
Trade and other payables (74)
Intangible assets - management agreements 3,560
Investments 21
Total identified assets and liabilities recognised 3,947
As at acquisition date, the fair value is the same as the tax base and
therefore there is no deferred tax impact.
The Investment Management Agreements were valued using a multi-period excess
earnings method which takes into account the future expected revenue and costs
attributable to the contracts acquired. The following inputs into the
valuation method were made:
· Useful economic life of the funds being 10 years;
· Net outflows of $200m assumed in year 1 and $50m of inflows per
year thereafter;
· Discount rate of 13.3% utilised;
· Market growth of the funds being 5%;
· Non-staff cost inflation and staff cost inflation of 3.0%.
The net assets of the acquired entity, SKY Harbor Capital Management GmbH,
were valued based on the entity's balance sheet as at 1 April 2025.
Goodwill was identified upon acquisition of SKY which has been recognised in
the balance sheet, which has been calculated as follows:
£000
Purchase consideration 4,878
Contingent consideration -
Less: fair value of identified assets (3,947)
Goodwill 931
The goodwill of £931,000 relating to the acquisition, allocated to the fixed
income business CGU, is attributable to the new business relating to the
investment management contracts and the expected synergies from combining the
SKY fixed income business acquired with the existing fixed income business of
the Group as well as the specialised workforce joining the Impax Group.
From the date of acquisition, SKY has contributed £1.7 million of revenue and
an operating profit of £0.4 million to the Group's profit and loss. If the
acquisition had happened at the start of the financial year, on 1 October
2024, the estimated revenue SKY would have contributed is £3.5 million and
operating profit of £0.9 million.
Any acquisition-related costs incurred have been expensed in full to the
Profit and Loss statement. As these costs are related to the business
combination effects, these have been removed from the reported IFRS operating
costs in Note 5.
5 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 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.
Year ended 30 September 2025
Reported - Adjustments Adjusted
IFRS
£000
£000
Business combination effects Other
£000 £000
Revenue 141,873 141,873
Operating costs (114,457) (108,231)
Amortisation of intangibles arising on acquisitions 2,621
Acquisition equity incentive scheme charges 178
Costs relating to business acquisitions 822
Other exceptional costs 72
Redundancy costs 3,295
Mark to market credit on equity awards (762)
Operating Profit 27,416 3,621 2,605 33,642
Finance income 2,876 2,876
Finance costs (2,455) 208 (2,247)
Profit before taxation 27,837 3,621 2,813 34,271
Taxation (7,543) (6,924)
Mark to market tax charge on equity schemes 1,794
Tax on business combination effects (472)
Tax on adjustments (703)
Profit after taxation 20,294 3,149 3,904 27,347
Diluted earnings per share 15.8 2.5 3.0 21.3
Year ended 30 September 2024
Reported - IFRS Adjustments Adjusted
£000 £000
Business combination effects Other
£000 £000
Revenue 170,113 170,113
Operating costs (121,086) (117,376)
Amortisation of intangibles arising on acquisition 2,571
Acquisition equity incentive scheme charges 428
Costs relating to business acquisitions 1,041
Mark to market charge on equity awards (330)
Operating Profit 49,027 4,040 (330) 52,737
Finance income 3,946 3,946
Finance costs (4,008) 3,047 (961)
Profit before taxation 48,965 4,040 2,717 55,722
Taxation (12,488) (14,103)
Tax on business combinations (936)
Tax on adjustments (679)
Profit after taxation 36,477 3,104 2,038 41,619
Diluted earnings per share 28.2 2.4 1.6 32.2
The diluted number of shares is the same as used for the IFRS calculation of
earnings per share (see note 14).
Amortisation of intangibles
Intangible assets include management contracts acquired as part of the
acquisitions of Impax NH, Impax Denmark and SKY (together the "Acquisitions")
and are amortised over their 11-year for Impax NH (determined to be such by
considering the average life of mutual funds in the US at the time of
acquisition) and 10-year lives for Impax Denmark and SKY (determined to be
such by considering Impax funds track record) . This charge is not linked to
the operating performance of these businesses and so is excluded from adjusted
profit.
Acquisition equity incentive scheme charges
Certain employees joining Impax as a result of the Acquisitions have been
awarded share-based payments. Charges in respect of these relate to the
Acquisitions rather than the operating performance of the Group and are
therefore excluded from adjusted profit.
Other exceptional costs
This includes one-off audit costs relating to the work performed on
implementation of a new general ledger system and the business combination.
Redundancy costs
The Group has incurred redundancy costs during the Period resulting from its
efficiency programme. These costs have been excluded from adjusted operating
profit measures on the basis that they are one-off in nature and not linked to
the operating performance of the Group.
Acquisition costs
Acquisition costs relate to costs incurred on completed and planned business
acquisitions. These charges do not relate to the operating performance of the
Group and are therefore excluded from the adjusted profit.
Mark to market charge on equity incentive awards
The Group has in prior Periods and the current Period awarded employees
options some of which are either unvested or unexercised at the balance sheet
date. The Group has also made awards of restricted shares ("RSS and RSP
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 and RSP awards when they vest, based on the valuation
of the underlying shares at that point. A charge is accrued for the NIC within
the IFRS operating profit based on the share price at the balance sheet date.
The Group also receives a corporation tax deduction equal to the value of the
awards at the date they are exercised (for options) or vest (for RSS and RSP
awards). The tax deduction 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
credit/charge on equity incentive schemes") and are not linked to the
operating performance of the Group. A mark-to-market tax adjustment is
recognised in the current Period arising from a sharp fall in share price in
FY25 (a 49% decrease). The share price is positively regarded by analysts with
a buy rating and therefore this adjustment is considered to be necessary due
to it being one-off in nature. Both effects 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. The comparative Period also included an adjustment to eliminate
the loss on translation of a US Dollar loan between the Parent Company and a
US subsidiary which had been capitalised.
6 SEGMENTAL REPORTING
(a) Operating segments
Segment information is presented on the same basis as that provided for
internal reporting purposes to the Group's chief operating decision maker
("CODM"), the Chief Executive. The CODM reviews segment performance based on
AUM and revenue for the 3 operating segments. Measures of segment profit or
loss, are not provided and therefore are not disclosed in these financial
statements. PPE, Goodwill and Intangibles are provided based on geographical
location and included below. Following a strategic acquisition during the
year, the Group now operates through three distinct business units:
- Listed Equities - focusing on actively traded thematic and core
equities strategies operating across the US, UK, Europe and Asia.
- Fixed Income - focusing on core bond and short duration high-yield
strategies operating across the US, Europe and Asia.
- Private Markets - focusing on targeting development and construction
assets to deliver value-add returns to new energy infrastructure, operating
across UK and Europe.
Revenue by reportable segment is shown in the table below:
2025 2024
£000 £000
Listed Equities 124,420 152,468
Private Markets 9,458 11,793
Fixed Income 7,995 5,852
Total 141,873 170,113
AUM by reportable segment is shown in the table below:
2025 2024
£m £m
Listed Equities 22,993 35,021
Private Markets 634 689
Fixed Income 2,429 1,478
Total 26,055 37,187
(b) Geographical analysis
An analysis of revenue by the location of client is presented below
Revenue
2025 2024
£000 £000
North America 48,905 53,774
Luxembourg 32,898 42,439
UK 19,683 30,754
France 12,341 11,420
Ireland 11,429 13,423
Canada 6,521 6,596
Australia 3,617 4,129
Netherlands 3,256 3,467
Other 3,223 4,111
Total 141,873 170,113
The following non-current assets: property plant and equipment, goodwill and
intangible assets are located in the countries listed below
Non-current assets
2025 2024
£000 £000
UK 3,820 4,746
United States 25,497 24,447
Hong Kong 286 457
Japan 286 211
Denmark 9 12
Ireland 1,000 1,119
Total 30,898 30,992
7 REVENUE
The Group's main source of revenue is investment management and advisory fees.
The Group may also earn carried interest from its private equity funds.
Management and advisory fees are generally based on an agreed percentage of
the valuation of AUM for listed equity and fixed income funds. For private
equity funds they are generally based on an agreed percentage of commitments
made to the fund by investors during the fund's investment period and
thereafter on the cost price of investments made and not exited. Carried
interest is earned from private equity funds if the cash returned to investors
exceeds an agreed return. There was no carried interest received in the Period
(2024: £221,000).
The Group determines the investment management and advisory fees to be a
single revenue stream as they are all determined through a consistent
performance obligation. Management fees include variable consideration but
there is no significant estimation or level of judgement involved.
Should AUM reduce as a result of equity market downturns, foreign exchange or
allocation of capital away from equity markets then the AUM-linked revenue
would reduce. Management fees and carried interest are only recognised once
it is highly probable that a significant reversal will not occur in future
periods.
None of the funds managed by the Group individually represented more than 10%
of Group revenue in the current or prior Period.
Revenue includes £139,098,387 (2024: £167,962,459) from related parties.
8 OPERATING COSTS
The Group's largest operating cost is staff costs. Other significant costs
include IT and communication costs, direct fund expenses, professional fees,
premises costs (depreciation on office building leases, rates and service
charges) and placement fees.
2025 2024
£000 £000
Staff costs (note 9) 71,500 82,176
IT and communications 9,526 8,650
Direct fund expenses 6,893 7,431
Professional fees 4,986 4,907
Depreciation and amortisation 3,370 3,262
Redundancy costs (excluding IFRS 2 related costs) 3,198 -
Premises costs 3,260 3,075
Placement fees 2,614 2,673
Research costs 1,413 1,578
Acquisition costs 822 1,041
Mark to market credit on share awards (762) (330)
Other costs 7,637 6,623
Total 114,457 121,086
Operating costs include £363,000 (2024: £911,000) in respect of placing
agent fees paid to related parties. Other costs include £486,000 (2024:
£309,000) paid to the Group's auditor which is analysed below. Audit-related
assurance services in the Period relate to the auditor's review of the Group's
half-yearly report.
2025 2024
£000 £000
Audit of the Group's Parent Company and consolidated financial statements 267 134
Audit of subsidiary undertakings 178 137
Audit-related assurance services 41 38
486 309
9 STAFF COSTS AND EMPLOYEES
Staff costs include salaries, variable bonuses, social security costs
(principally employers' NIC on salary, bonus and share awards), the cost of
contributions made to employees' pension schemes and share-based payment
charges. Further details of the Group's remuneration policies are provided in
the Remuneration Committee Report. Share-based payment charges are offset
against the total cash bonus pool paid to employees. NIC charges on
share-based payments are accrued based on the share price at the balance sheet
date and the proportion vested.
2025 2024
£000 £000
Salaries and variable bonuses 54,120 62,128
Social security costs 5,412 6,183
Pensions 2,238 2,220
Share-based payment charge (see note 10) 5,327 6,696
Other staff costs 4,403 4,949
71,500 82,176
The Group contributes to defined contribution private pension schemes. The
assets of the schemes are held separately from those of the Group in
independently administered funds. The pension cost represents contributions
payable by the Group to these funds. Contributions totalling £533,000 (2024:
£525,000) were payable to the funds at the Period-end and are included in
trade and other payables.
Other staff costs include the cost of providing health and other insurances
for staff, Non-Executive Directors' fees, contractor fees, recruitment fees
and termination costs.
Directors and key management personnel
Key management personnel are related parties and are defined as members of the
Board and our executive committees. The remuneration of key management
personnel, including pension contributions, during the Period was £6,727,105
plus £1,751,502 of share-based payments (2024: £10,751,821 plus £2,316,645
of share-based payments). No Board members received pension contributions
during the Period (2024: nil).
Employees
The average number of persons (excluding Non-Executive Directors and including
temporary staff), employed during the Period was 298 (2024: 311).
2025 2024
No. No.
Portfolio Management 120 117
Private Equity 14 16
Client Service and Business Development 95 103
Group 69 75
Total 298 311
Deferred remuneration
The Group operates a deferred remuneration plan under which certain employees,
whose bonus entitlement exceeds a threshold determined by the Remuneration
Committee, are required to participate. Under this plan, a portion of the
bonus is mandatorily deferred over a specified vesting period and invested
into share units of designated Group funds.
Upon deferral, a liability is recognised representing the expected settlement
amount, which is remeasured at each balance sheet date based on the current
market value of the fund units. This liability is disclosed within non-current
liabilities which also includes the NIC payable on vesting for these awards
(see Note 23).
An investment asset is also recognised once the deferred bonus is allocated to
fund units. Changes in the value of both the liability and the investment are
reflected in the Consolidated Income Statement, with movements in the
liability recorded within Staff Costs and movements in the investment
recognised within Finance Income or Finance Expense (see Notes 11 and 12).
The deferral of the bonus is over a vesting period of 5 years with payments
being paid in three equal tranches in years three, four and five from the
award and the cost of the award is spread over this vesting period. The
performance obligations are that the employees must still be employed within
the Group at each vesting date. Included within staff costs in the
Consolidated Income Statement is a charge of £71k (2024: nil) relating to
bonuses deferred into fund units.
At Period-end, the liability was valued as £525k. The liability has been
discounted to present value based on a discount rate of 4.11% which has been
derived from UK Gilt yields. The movement in liability during the year is
shown below.
£ '000
Opening liability as at 30 September 2024 -
Service cost 454
Unwinding of the present value of deferred remuneration 71
Closing liability as at 30 September 2025 525
10 SHARE-BASED PAYMENT CHARGES
The total expense recognised for the Period arising from share-based payment
transactions was £5,327,000 (2024: £6,696,000). The charges arose in respect
of the Group's Restricted Share Scheme ("RSS") and Restricted Share Plan
("RSP") awards as well as the Group's Long Term Option Plan ("LTOP") which are
described below. Details of all outstanding options are provided at the end of
this Note. The charges for each scheme are:
2025 2024
£000 £000
RSP and RSS 4,401 5,642
LTOP 926 1,054
5,327 6,696
Restricted Share Scheme
Restricted shares under the Restricted Share Scheme ("RSS") were awarded to
some employees as part of their year-end remuneration. These awards are equity
settled. These awards were made post-year end but part of the charge is
recorded in the Period based on an estimated value at the Period end date.
During the Period, RSS awards were replaced with Restricted Share Plan ("RSP")
awards (see section below). The last issue of RSS awards occurred on 8 August
2024
and forms part of the disclosure below for the 2024 RSS A awards.
Full details of the awards granted during the Period along with their
valuation and the inputs used in the valuation are described in the tables
below. The valuation was determined using the Black-Scholes-Merton model with
an adjustment to reflect that dividends are received during the vesting
period.
2024
2024 RSS 2023 RSS (Final)
A
Awards originally granted 357,084 1,533,584
Weighted average award value £4.12 £5.13
Weighted average share price on grant £4.32 £5.20
Weighted average expected volatility 36.5% 36.4%
Weighted average award life on grant 3.7 years 5.3 years
Weighted average expected dividend yield 6.6% 5.3%
Weighted average risk free interest rate 3.7% 4.0%
The expected volatility was determined by reviewing the historical volatility
of the Company and that of comparator companies. The expected dividend rate is
determined using analyst expectation of dividend yield at the time of grant.
Restricted Share Plan
Restricted shares are awarded to some employees as part of their year-end
remuneration under the Restricted Share Plan ("RSP"). These awards are equity
settled. These awards are made post-year end but part of the charge is
recorded in the Period based on an estimated value at the Period end date.
900,231 RSP awards were granted during the Period under the 2024 RSP. Awards
can also be issued to new employees or existing employees outside of post-year
end remuneration and during the Period, 69,828 RSP awards were granted to
employees ("2025 RSP A"). Post-year end, the Board approved the grant of
2,343,500 RSP awards under the 2025 RSP which are also equity settled. After a
period of three years' continuous employment, the employees will receive
unfettered access to one third of the shares, after four years a further third
and after five years the final third. The employees are not required to make
any payment for the shares on grant or when the restrictions lapse other than
personal taxes. The fair value of the RSP awards has initially been estimated
(based on the Black-Scholes-Merton model) using the average share price over
the period of five days preceding the Remuneration Committee and other inputs
as at this date. This will be adjusted for using the share price and other
inputs at the grant date.
Full details of the awards granted during the Period along with their
valuation and the inputs used in the valuation are described in the tables
below. The valuation was determined using the Black-Scholes-Merton model.
2025 2024
2025 RSP (estimated) 2025 RSP 2024 RSP (Final)
A
Awards originally granted 2,343,500 69,828 900,231
Weighted average award value £1.44 £0.77 £1.13
Weighted average share price on grant £1.87 £1.44 £1.74
Weighted average expected volatility 37.5% 37.0% 36.9%
Weighted average award life on grant 5.3 years 4.0 years 5.3 years
Weighted average expected dividend yield 6.4% 16.4% 11.2%
Weighted average risk free interest rate 4.0% 4.1% 4.2%
Total Restricted shares outstanding (RSP and RSS) No. of awards
Outstanding at 1 October 2024 3,297,038
Granted during the year 970,059
Vested during the year (349,547)
Forfeited during the year (139,681)
Outstanding at 30 September 2025 3,777,869
The weighted average share price on RSS awards vested during the Period was
£2.06. The weighted average remaining contractual life of Restricted Share
awards is 5.2 years.
Employee share option plan
Long Term Option Plan
Awards have been granted to employees under the Group's LTOP between 2018 and
2025. The strike prices of these options are £1 (2018 and 2019), £3 (2020),
£9 (2021), £7.50 (2022), £4.40 (2023) and £3.34 (LTOP 2024). These options
do not have performance conditions but do have a time vesting condition such
that the options vest subject to continued employment on five years following
grant. Vested shares are restricted from being sold until after a further
five-year period (other than to settle any resulting tax liability).
Awards have also been granted to employees joining the Impax Group as part of
the SKY acquisition (SKY LTOP 2025) which have a strike price of £1.70. These
options do not have performance conditions but do have a time vesting
condition such that the options vest subject to continued employment on three
years following grant. Vested shares are restricted from being sold until
after a further five-year period (other than to settle any resulting tax
liability).
Post-year end the Board approved the grant of 1,345,000 options under the 2025
LTOP plan with a £1.87 strike price and with the other conditions the same as
the 2018-2024 plans.
The valuation was determined using the binomial model. Full details of the
awards granted during the Period along with their valuation and the inputs
used in the valuation are described in the following table.
Share options are equity settled.
2025 2024
2025 LTOP (estimated) SKY LTOP 2025 2024 LTOP 2023 LTOP
Awards originally granted 1,345,000 457,813 469,500 996,273
Weighted average exercise price £1.87 £1.70 £3.34 £4.40
Weighted average award value £0.34 £0.44 £0.09 £1.22
Weighted average share price on grant £1.87 £2.06 £1.93 £5.23
Weighted average expected volatility 37.5% 37.2% 36.9% 36.5%
Weighted average award life on grant 6 years 3 years 6 years 6 years
Weighted average expected dividend yield 6.4% 6.4% 11.2% 5.3%
Weighted average risk free interest rate 4.0% 4.1% 4.2% 4.0%
The expected volatility was determined by reviewing the historical volatility
of the Company and that of comparator companies. The expected dividend rate is
determined using analyst expectation of dividend yield at the time of grant.
The fair value of the 2025 LTOP awards has initially been estimated using the
average share price over the period of five days preceding the Remuneration
Committee and other inputs as at this date. This will be adjusted for using
the share price and other inputs at the grant date.
Options outstanding
An analysis of the outstanding options arising from the Group's LTOP is
provided below:
Number Weighted average exercise price p
Options outstanding at 1 October 2024 2,574,848 432.5
Options granted 927,313 253.0
Options forfeited (100,000) 502.0
Options exercised (350,000) 100.0
Options outstanding at 30 September 2025 3,052,161 413.8
Options exercisable at 30 September 2025 240,000 100.0
The weighted average remaining contractual life was 7.3 years.
During the Period, 50,000 options, with a £0.01 exercise price, were also
granted to employees (2024: 39,000). These options vest in one tranche in
February 2031. Post-year end, the Board approved the grant of a further
102,000 of these options with the same conditions which vest in 2031.
11 FINANCE INCOME
2025 2024
£000 £000
Fair value gains - 624
Interest income 2,876 3,305
Gain on acquisition - 17
2,876 3,946
In the prior Period, fair value gains represent those arising on the
revaluation of listed and unlisted investments held by the Group (see note 20)
and any gains or losses arising on related hedge instruments held by the
Group.
12 FINANCE EXPENSE
2025 2024
£000 £000
Interest on lease liabilities 379 416
Interest on Earn-out 41 12
Fair value losses 942 -
Foreign exchange losses 1,093 3,580
2,455 4,008
Foreign exchange losses in the current Period mainly arose on the
retranslation of monetary assets held in US Dollars and Euros. Foreign
exchange losses in the prior Periods included the retranslation of a US Dollar
denominated loan between the Parent Company and a US subsidiary which has now
been capitalised. A corresponding gain was recognised in equity in the
exchange translation reserve.
In the current Period, fair value losses represent those arising on the
revaluation of listed and unlisted investments held by the Group (see note 20)
and any gains or losses arising on related hedge instruments held by the
Group.
Fair value losses comprise unrealised gains of £373,000 offset by realised
losses of £1,315,000 (2024: £1,653,000 of unrealised gains offset by net
realised losses of £1,029,000 which was shown as net fair value gains in note
11).
13 TAXATION
The Group is subject to taxation in the countries in which it operates (the
UK, the US, Hong Kong, Ireland, Germany, Denmark and Japan) at the rates
applicable in those countries. The total tax charge includes taxes payable for
the reporting period ("current tax") and also charges relating to taxes that
will be payable in future years due to income or expenses being recognised in
different periods for tax and accounting periods ("deferred tax").
(a) Analysis of charge for the Period
2025 2024
£000 £000
Current tax expense:
UK corporation tax 7,318 11,836
Foreign taxes 463 1,516
Stamp duty - 65
Adjustment in respect of prior years (1,140) 163
Total current tax 6,641 13,580
Deferred tax expense/(credit):
Credit for the Period 932 (1,062)
Adjustment in respect of prior Periods (30) (30)
Total deferred tax 902 (1,092)
Total income tax expense 7,543 12,488
A tax charge of £68,000 (deferred tax charges of £68,000 with no offsetting
current tax impacts in the current Period) is also recorded in equity in
respect of changes in estimates of the tax deductions on share awards arising
from changes in the share price (2024: credits of £19,000 (deferred tax
charges of £356,000 net of current tax credits of £375,000)).
(b) Factors affecting the tax charge for the Period
The UK tax rate for the Period is 25%. The tax assessment for the Period is
higher than this rate (2024: higher). The differences are explained below:
2025 2024
£000 £000
Profit before tax 27,837 48,965
Tax charge at 25% (2024: 25%) 6,959 12,241
Effects of:
Non-taxable income (1) (30)
Non-deductible expenses and charges 1,890 780
Adjustment in respect of historical tax charges (1,140) 163
Effect of lower tax rates in foreign jurisdictions (449) (270)
Stamp duty expenses - 65
Utilisation/(recognition) of prior year tax losses 284 (461)
Total income tax expense 7,543 12,488
(c) Deferred tax
The deferred tax asset included in the consolidated statement of financial
position is as follows:
Share-based payment scheme Tax losses carried forward Other assets Expenses not yet deductible Other liabilities Total
£000 £000 £000 £000 £000 £000
As at 1 October 2023 3,123 611 (194) - 125 3,665
Charge to equity (356) - - - - (356)
Exchange differences on consolidation (105) (55) (19) - - (179)
Credit/(charge) to the income statement (456) 1,506 21 - 21 1,092
As at 30 September 2024 2,206 2,062 (192) - 146 4,222
Charge to equity (68) - - - - (68)
Exchange differences on consolidation - (3) - - - (3)
(Charge)/credit to the income statement (762) (284) 124 - 20 (902)
As at 30 September 2025 1,376 1,775 (68) - 166 3,249
In the prior Period, a previously unrecognised deferred tax asset of £952,000
relating to £3.8 million of losses in one of the Group's subsidiaries has
been recognised in the prior Period. Following the reorganisation of certain
Group subsidiaries, there is now sufficient evidence that there will be
taxable profits in the future against which these deferred tax assets could be
utilised.
14 EARNINGS PER SHARE
Basic earnings per share ("EPS") is calculated by dividing the profit for the
Period attributable to ordinary equity holders of the Parent Company (the
"Earnings") by the weighted average number of ordinary shares outstanding
during the Period, less the weighted average number of own shares held. Own
shares are held in the Group's Employee Benefit Trust ("EBT").
Diluted EPS includes an adjustment to reflect the dilutive impact of share
awards.
Earnings for the year Shares Earnings per share
£000 000's
2025
Basic 20,294 127,316 15.9p
Diluted 20,294 128,447 15.8p
2024
Basic 36,477 127,829 28.5p
Diluted 36,477 129,180 28.2p
The weighted average number of shares is calculated as shown in the table
below:
2025 2024
'000 '000
Weighted average issued share capital 132,348 132,597
Less own shares held not allocated to vested LTOP options (5,032) (4,768)
Weighted average number of ordinary shares used in the calculation of basic 127,316 127,829
EPS
Additional dilutive shares regarding share schemes(1) 4,494 5,354
Adjustment to reflect option exercise proceeds and future (3,363) (4,003)
service from employees receiving awards/shares(2)
Weighted average number of ordinary shares used in the calculation of diluted 128,447 129,180
EPS
1 This is the impact of dilutive RSP. RSS and LTOP share awards vesting in the
future, including only LTOP awards which are in the money.
2 This adjustment includes the anti-dilutive effects of future charges of
existing dilutive share awards at the weighted average share price of FY25 as
well as the options proceeds received from dilutive LTOP awards.
There are some share options which are anti-dilutive and as such have been
excluded from the table above.
15 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 Period therefore comprises the
prior Period final dividend and the current Period interim dividend.
Dividends declared/proposed in respect of the Period
2025 2024
pence pence
Interim dividend declared per share 4.0 4.7
Final dividend proposed per share 8.0 22.9
Total 12.0 27.6
The proposed final dividend of 8.0p will be submitted for formal approval at
the Annual General Meeting to be held on 5 March 2026. Based on the number of
shares in issue at the date of this report and excluding own shares held the
total amount payable for the final dividend would be £10,001,000.
Dividends paid in the Period
2025 2024
£000 £000
Prior year final dividend - 22.9p, 22.9p 30,064 30,132
Interim dividend - 4.0p, 4.7p 5,225 6,169
35,289 36,301
16 GOODWILL
The goodwill balance within the Group at 30 September 2025 arose from the
acquisition of Impax Capital Limited on 18 June 2001, the acquisition of Impax
NH in January 2018 and the acquisition of SKY on 1 April 2025.
Goodwill
£000
Cost
At 1 October 2023 12,883
Foreign exchange (1,014)
At 1 October 2024 11,869
Acquisition of SKY 931
Foreign exchange (53)
At 30 September 2025 12,747
Following the acquisition of SKY on 1 April 2025, the Group reassessed its
cash-generating units ("CGUs") and concluded that the Fixed Income business
should be treated as a separate CGU. Consequently, cash flows attributable to
the fixed income component of Impax NH have been allocated to the new Fixed
Income CGU. A proportionate allocation of goodwill relating to the fixed
income activities within the former Impax NH CGU has also been made.
As at 30 September 2025 goodwill was allocated as follows - £7,641,000 to
Impax NH (not including fixed income), £1,629,000 to the listed equity CGU
(not including fixed income) both of which are in the Listed Equity segment
and £3,477,000 to the Group's Fixed Income business as a whole.
Impairment Testing Methodology
The recoverable amount of each CGU was determined using value-in-use
calculations based on discounted cash flow models over a five-year forecast
period, including a terminal value (2024: ten-year period without a terminal
value). Cash flow projections reflect the Board-approved budget for the year
ending 30 September 2026 and management's long-term growth assumptions,
adjusted for historical performance to ensure neutrality. The discount rate
applied was derived from the Group's weighted average cost of capital,
adjusted for market-specific risks.
The impairment test for the Impax NH CGU showed no impairment (2024: no
impairment) and the following key assumptions were used - Revenue growth 5%
(2024: average fund inflows of US$1.60 billion & fund performance 5%),
cost growth of 3% (2024: average operating margin of 31%) and a discount rate
of 12.5% (2024: 12.5%).
The impairment test for the Fixed Income business CGU showed no impairment
(2024: N/A) and the following key assumptions were used - average fund inflows
of US$1.4bn, fund performance of 5%, an average bp rate of 0.35%, an average
cost growth of 3% and a discount rate of 12.5%.
Sensitivity analyses were performed across all CGUs to assess the impact of
plausible downside scenarios on discount rates, cost growth, terminal value
assumptions, and revenue growth which would result in breakeven for the CGUs.
Management considers none of these scenarios to be plausible, except for a
potential reduction in Impax NH CGU revenue growth of 4.45%, which would
reduce headroom by $63.8m but would not result in impairment. Management views
this scenario as highly improbable given strategic initiatives expected to
increase headroom in future years.
The goodwill on the listed equity CGU arose over 20 years ago and the business
has grown organically and significantly in size and profitability since that
date. There is accordingly substantial headroom before an impairment is
required. The main assumptions used to calculate the cash flows in the
impairment test for these CGU were that assets under management and margins
would continue at current levels, that fund performance for the listed equity
business would be 5% per year (2024: 5%) and a discount rate of 12.5% (2024:
12.5%). There has been no impairment of goodwill related to this CGU to date,
and significant sustained asset outflows would be required before any
impairment becomes necessary
17 INTANGIBLE ASSETS
Intangible assets mainly represents the value of the management contracts
acquired as part of the acquisitions of Impax NH, Impax Denmark and SKY.
Acquired management contracts Software Total
£000 £000 £000
Cost
As at 1 October 2023 29,200 600 29,800
Additions 854 16 870
Foreign exchange (3,012) - (3,012)
As at 30 September 2024 27,042 616 27,658
Additions 3,560 288 3,848
Foreign exchange 245 - 245
As at 30 September 2025 30,847 904 31,751
Accumulated amortisation
As at 1 October 2023 15,328 287 15,615
Charge for the year 2,571 122 2,693
Foreign exchange (1,894) - (1,894)
As at 30 September 2024 16,005 409 16,414
Charge for the year 2,621 163 2,784
Foreign exchange 324 - 324
As at 30 September 2025 18,950 572 19,522
Net book value
As at 30 September 2025 11,897 332 12,229
As at 30 September 2024 11,037 207 11,244
As at 30 September 2023 13,872 313 14,185
With regards to Impax NH, the management contracts were acquired with the
acquisition in January 2018 and are amortised over an 11-year life. The
investment management agreements acquired as part of the Absalon and SKY
acquisitions are amortised over a 10-year life.
Impairment Testing Methodology
The recoverable amount of each group of intangibles has been determined based
on value-in-use calculations using discounted cash flow models over the
remaining useful life of the management contracts (2024: remaining useful
life). Cash flow projections are based on the Board-approved budget for the
year ending 30 September 2026 and management's long-term growth assumptions
while also considering historical performance to ensure neutral, unbiased
cashflows. The discount rate was derived from the Group's weighted average
cost of capital, adjusted for market specific risks associated with the
estimated cash flows.
The impairment test for the Impax NH Intangible assets showed no impairment
(2024: no impairment) and the following key assumptions were used - Revenue
growth 5% (2024: average fund inflows of US$1.60 billion & fund
performance 5%), cost growth of 3% (2024: average operating margin of 31%) and
a discount rate of 12.5% (2024: 12.5%).
The impairment test for the Sky Harbor Intangible assets showed no impairment
(2024: N/A) and the following key assumptions were used - average fund inflows
of US$30m, fund performance of 5%, an average bp rate of 0.35%, an average
cost growth of 3% and a discount rate of 13.3%.
The impairment test for the Absalon Intangible assets showed no impairment
(2024: no impairment) and the following key assumptions were used - average
fund inflows of £243m, fund performance of 3%, an average bp rate of 0.41%,
an average cost growth of 3% and a discount rate of 12.5%.
Sensitivity analyses were performed across the intangible assets to assess the
impact of plausible downside scenarios on discount rates, cost growth,
terminal value assumptions, and revenue growth which would result in breakeven
for the management contracts. Management considers none of these scenarios to
be plausible, except for a potential reduction in Impax NH CGU revenue growth
of 4.45%, which would reduce headroom by $10.9m but would not result in
impairment. Management views this scenario as highly improbable given
strategic initiatives expected to increase headroom in future years.
18 PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment mainly represents the costs of fitting out the
Group's leased London office ("leasehold improvements"), office furniture and
computers ("fixtures, fitting and equipment") and the capitalised value of the
Group's leases of its office buildings ("right-of-use assets").
Right-of-use assets Leasehold improvements Fixtures, fittings and equipment Total
£000 £000 £000 £000
Cost
As at 1 October 2023 12,756 2,424 2,967 18,147
Additions 1,229 137 421 1,787
Disposals 945 - - (945)
Foreign exchange (476) (4) (88) (568)
As at 30 September 2024 12,564 2,557 3,300 18,421
Additions 285 - 193 478
Disposals - - - -
Foreign exchange (88) (3) (5) (96)
As at 30 September 2025 12,761 2,554 3,488 18,803
Accumulated depreciation
As at 1 October 2023 5,502 1,642 2,183 9,327
Charge for the year 1,317 212 356 1,885
Disposals (446) - - (446)
Foreign exchange (171) (1) (52) (224)
As at 30 September 2024 6,202 1,853 2,487 10,542
Charge for the year 1,776 221 365 2,362
Disposals - - - -
Foreign exchange (17) - (6) (23)
As at 30 September 2025 7,961 2,074 2,846 12,881
Net book value
As at 30 September 2025 4,800 480 642 5,922
As at 30 September 2024 6,362 704 813 7,879
As at 30 September 2023 7,254 782 784 8,820
Lease arrangements
Property, plant and equipment includes right-of-use assets in relation to
leases for the Group's office buildings.
The carrying value of the Group's right-of-use assets, associated lease
liabilities and the movements during the Period are set out below.
Right-of-use assets Lease liabilities
£000 £000
At 1 October 2024 6,362 7,785
New leases 285 285
Disposals - -
Lease payments - (2,612)
Interest expense - 379
Depreciation charge (1,776) -
Foreign exchange movement (71) (93)
At 30 September 2025 4,800 5,744
Current 1,967
Non-current 3,777
5,744
The contractual maturities on the undiscounted minimum lease payments under
lease liabilities are provided below:
2025 2024
£000 £000
Within one year 2,278 2,418
Between 1 and 5 years 3,809 5,355
Later than 5 years 315 940
Total undiscounted lease liabilities 6,402 8,713
The Group's London office lease has an extension option of a further five
years from June 2027, subject to a rent review, which is not included in the
above numbers on the basis that it is not yet reasonably certain that it will
be exercised.
19 TRADE AND OTHER RECEIVABLES
2025 2024
£000 £000
Trade receivables 8,294 7,721
Other receivables 3,023 2,500
Prepayments and accrued income 21,472 26,649
32,789 36,870
Accrued income relates to accrued management fees and arises where invoices
are raised in arrears.
Included within prepayments and accrued income are deferred placement fees
amounting to £559,000 (2024: £986,000). These costs are amortised to the
income statement over the fund's investment period (see Note 8).
An analysis of the aging of trade receivables is provided below:
2025 2024
£000 £000
0-30 days 6,192 5,729
Past due but not impaired:
31-60 days 351 787
61-90 days 865 -
Over 90 days 886 1,205
8,294 7,721
At the date of this report, the majority of the trade receivables above have
been received including the over 90 days balance. As at 30 September 2025, the
assessed provision under the IFRS 9 expected loss model for trade receivables
and prepayments and accrued income was immaterial (2024: immaterial).
£26,793,000 of trade and other receivables and accrued income were due from
related parties (2024: £29,485,000).
20 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 current asset investments are shown in the table below. Investments
made in unconsolidated funds are also included.
2025 2024 (Restated)
£000
£000
At 1 October 2024 and at 1 October 2025 15,993 13,270
Additions 2,039 5,998
Fair value movements 374 1,549
Repayments/disposals (1,591) (4,824)
At 30 September 2025 and at 30 September 2024 16,815 15,993
Current 12,245 11,612
Non-current 4,570 4,381
Total 16,815 15,993
The investments include £16,793,000 in related parties of the Group (2024:
£15,993,000).
£4.6m of investments (2024: £4.3m) relate to Level 3 investments, which
represent the Group's investments in private equity funds. Following a review,
the directors have determined that it is more appropriate to classify these
investments as non-current, given their nature and the intention to realise
them over the longer term. Although the directors do not consider the impact
of this reclassification to be material, the comparative information has
nevertheless been restated to enhance comparability. As a result, current
asset investments have decreased by the same amount correspondingly. This
restatement is reflected in this Note of the financial statements.
Hierarchical classification of investments
The hierarchical classification of the investments as considered by IFRS 13
Financial Instruments: Disclosures is shown below:
Level 1 Level 2 Level 3 Total
£000 £000 £000 £000
At 1 October 2024 11,610 - 4,383 15,993
Additions 1,601 - 438 2,039
Repayments/disposals (1,564) - (27) (1,591)
Fair value movements 595 - (221) 374
At 30 September 2025 12,242 - 4,573 16,815
There were no movements between any of the levels in the Period.
The Level 3 investments are in the Group's private equity funds. The net asset
value of these funds as reported in the NAV statements represents the fair
value at the end of the reporting period and as such a range of unobservable
inputs is not reported. The underlying investment in the fund is based on
valuation methodologies depending on the nature of the investment. If the NAV
of those funds changed by +/- 10% then the valuation of those investments
would change by +/- £457,000.
Market risk and investment hedges
Investments made are subject to market risk. Where appropriate the
Group has attempted to hedge against the risk of market falls by the use
of derivative contracts. The derivative contracts consist of short positions
against a global equity index and are arranged through BNP Paribas, a related
party. Any outstanding amounts on the short positions are settled daily.
Merger of Group's investments in US subsidiaries
On 1 October 2024, there was a statutory merger of Impax Asset Management US
LLC with Impax Asset Management LLC. This resulted in an addition to the
merger reserve of £1.4 million (see Consolidated Statement of Changes in
Equity).
21 INTERESTS IN UNCONSOLIDATED STRUCTURED ENTITIES
The Group's interest in structured entities is reflected in the Group's AUM.
The Group is exposed to movements in AUM of structured entities through
potential loss of fee income as a result of client withdrawals or market
falls. Outflows from funds are dependent on market sentiment, asset
performance and investor considerations. Further information on these risks
can be found in the Strategic Review. Considering the potential for changes in
AUM of structured entities, management has determined that the Group's
unconsolidated structured entities include segregated mandates and pooled
funds vehicles. Disclosure of the Group's exposure to unconsolidated
structured entities has been made on this basis.
At 30 September 2025, AUM managed within unconsolidated structured entities
was £26.06 billion (2024: £37.19 billion) and within consolidated structured
entities was nil (2024: £nil).
£141,873,000 (2024: £170,113,000) in revenue was earned from unconsolidated
structured entities.
The total exposure to unconsolidated structured entities in the statement of
financial position is shown in the table below:
2025 2024
£000 £000
Management fees receivable (including accrued income) 26,478 30,556
Investments 16,815 15,993
43,293 46,549
The main risk the Group faces from its interest in unconsolidated structured
entities are decreases in the value of seed capital investments.
22 CASH AND CASH EQUIVALENTS, CASH INVESTED IN MONEY MARKET FUNDS
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 in 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:
2025 2024
£000 £000
Cash and cash equivalents 22,879 25,300
Cash invested in money market funds 45,151 67,797
Less: cash held in RPAs (3,359) (2,297)
Cash reserves 64,671 90,800
The Group is exposed to interest rate risk on the above balances as interest
income fluctuates according to the prevailing interest rates. The average
interest rate on the cash balances during the Period was 3.6% (2024: 4.2%).
Given current interest rate levels a sensitivity rate of 1% is considered
appropriate.
A 1% increase in interest rates would have increased Group profit after tax by
£512,000. An equal change in the opposite direction would have decreased
profit after tax by £480,000.
The credit risk relating to cash reserves held by the Group is spread over
several counterparties. The Group holds cash balances with RBS International
(Standard & Poor's credit rating of A-1), Bank of Ireland (Standard &
Poor's credit rating of A-2) and the Bank of New Hampshire (unrated), Danske
Bank (Standard & Poor's credit rating of A-1), SMBC (unrated), Commerzbank
(Standard & Poor's credit rating of A-1), Capital One (Standard &
Poor's credit rating of BBB), Eastern Bank (unrated), Santander (Standard
& Poor's credit rating of A-1) and Hang Seng (Standard & Poor's credit
rating of A-1+). The remainder of the Group's cash reserves is invested in
money market funds managed by BlackRock, with a Standard & Poor's credit
rating of AAAm, and Goldman Sachs, with a Standard & Poor's credit rating
of AAAm. Expected credit loss (ECL) on cash and cash equivalents as well as
cash invested in money market funds is not material.
23 TRADE AND OTHER PAYABLES
2025 2024
£000 £000
Current:
Trade payables 947 792
Taxation and other social security 565 874
Other payables 6,256 5,290
Accruals and deferred income 25,346 35,731
Non-current:
Accruals 578 -
Total 33,692 42,687
The most significant accrual at the Period end relates to variable staff
remuneration. Other payables includes estimated amounts payable for the
Earn-out from the Impax Denmark acquisition in 2024. This is measured at fair
value and is classified as Level 3 for the hierarchical classification
purposes of IFRS 13. Other payables include an amount relating to earn-out
payable as part of the acquisition of Absalon Corporate Credit in 2024. This
amounts to £315k (2024: £348k) of which a total of £49k was paid in the
current Period.
24 ORDINARY SHARES
Issued and fully paid 2025 2024 2025 2024
No of shares/000s No of shares/000s £000 £000
At 1 October and 30 September 130,677 132,597 1,307 1,326
No of Shares £000
At 1 October 2023 132,596,554 1,326
At 30 September 2024 132,596,554 1,326
Shares cancelled in share buyback programme (1,919,423) (19)
At 30 September 2025 130,677,131 1,307
Ordinary shares have a par value of £0.01 per share. Each ordinary share
carries the right to attend and vote at general meetings of the Company.
Holders of these shares are entitled to dividends as declared from time to
time. Following the commencement of the share buyback programme on 22 May
2025, a total of 1,919,423 shares were purchased at a value of £3,535,028
(including transaction costs of £8,917) and subsequently cancelled.
25 OWN SHARES
No of Shares £000
At 1 October 2023 4,274,276 18,605
Issuance of shares to EBT 2012 1,866,128 8,441
Satisfaction of option exercises and RSS vesting (1,318,124) (5,806)
At 30 September 2024 4,822,280 21,240
Purchases of shares by EBT 2012 1,728,246 3,376
Satisfaction of option exercises and RSS vesting (621,524) (2,336)
At 30 September 2025 5,929,002 22,280
The EBT holds shares for RSS awards until they vest or to satisfy share option
exercises. Own Shares includes 2,852,060 shares held in a nominee account in
respect of the RSS vesting on future dates as described in Note 10, and
289,915 shares held in a nominee account for exercised options which are
subject to a five-year holding period.
26 FINANCIAL COMMITMENTS
At 30 September 2025 the Group has outstanding commitments to invest up to the
following amounts into private equity funds that it manages:
· €830,965 into Impax New Energy Investors III LP (2024:
€865,366); this amount could be called on in the period to 31 December 2026;
and
· €1,372,808 into Impax New Energy Investors IV SCSp Luxembourg
(2024: €1,802,075); this amount could be called on in the period to 31
October 2031.
27 RECONCILIATION OF PROFIT BEFORE TAX TO CASH GENERATED FROM OPERATIONS
This note should be read in conjunction with the consolidated cash flow
statement. It provides a reconciliation to show how profit before tax, which
is based on accounting rules, translates to cash flows.
2025 2024
£000 £000
Profit before taxation 27,837 48,965
Adjustments for income statement non-cash charges/income:
Depreciation of property, plant and equipment and amortisation of intangible 5,146 4,578
assets
Finance income (2,876) (3,946)
Finance expense 2,455 4,008
Share-based payment charges 5,327 6,696
Gain on disposals of property, plant & equipment - (22)
Adjustment for statement of financial position movements
Decrease in trade and other receivables 4,092 5,815
Decrease in trade and other payables (9,067) (2,470)
Cash generated from operations 32,914 63,624
Ends
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. END FR BPBLTMTMTBMA
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