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RNS Number : 6847J Impax Asset Management Group plc 22 May 2025
Impax Asset Management Group plc
Interim results to 31 March 2025
London, 22 May 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 interim results for the six months
to 31 March 2025 (the "Period").
H1 Business highlights
· Challenging first half of financial year, with decline in assets
under management ("AUM")
· Improving investment performance relative to benchmarks,
including after Period end
· Positive momentum towards strategic priorities: closed SKY Harbor
acquisition after Period end
· Tight control of costs: Impax remains financially strong
· Announcing a £10 million share buyback programme, signalling
confidence in Company's future success
H1 Financial highlights
· AUM at £25.3 billion (H1 2024: £39.6 billion; FY 2024: £37.2
billion)
· Revenue of £76.5 million (H1 2024: £86.2 million; H2 2024:
£84.0 million)
· Adjusted operating profit of £20.5 million (H1 2024: £25.8
million; H2 2024: £26.9 million)
· Adjusted operating margin of 26.8% (H1 2024: 30.0%; H2 2024
32.0%)
· IFRS profit before tax of £18.6 million (H1 2024: 24.6 million;
H2 2024: £24.4 million)
· Adjusted diluted earnings per share of 12.6 pence (H1 2024: 16.0
pence; H2 2024: 16.2 pence)
· IFRS diluted earnings per share of 9.7 pence (H1 2024: 14.0
pence; H2 2024: 14.2 pence)
· Interim dividend per share of 4.0 pence (H1 2024: 4.7 pence; FY
2024. Total dividend: 27.6 pence)
· Cash reserves of £60.3 million (H1 2024: £60.8 million; H2
2024: £90.8 million)
Ian Simm, Chief Executive commented:
"Impax's investment thesis is based on the insight that the transition to a
more sustainable economy is both highly likely, as individuals and businesses
prefer more efficient, less damaging goods and services, and also replete with
investment opportunities, particularly due to the mispricing that often
accompanies significant market developments in this area.
"Although many of the investment strategies that we manage lagged generic
benchmarks during 2023 and 2024, there are strong signs that this period is
behind us and that our investment focus can once again deliver attractive
returns. Since the start of the calendar year, our relative investment
performance has improved: as at 30 April 2025, 71% of our AUM had outperformed
their generic benchmarks since 1 January 2025.
"We have made further progress towards our strategic priorities, which include
enhancing our listed equities proposition and expanding our fixed income and
private markets capabilities to help diversify our product offering. We also
continue to focus on growing our direct channel distribution capabilities,
deepening our partnerships with selected third parties and refining our agile
and scalable operating model. We also maintained tight control of our costs,
accelerating our efficiency programme without materially reducing our
capabilities or growth prospects.
"The Board's approach to capital management remains disciplined and firmly
aligned to the Company's strategic priorities. Our dividend policy of paying
out at least 55% of adjusted profit after tax will continue; however, for the
current financial year, we anticipate the payout will be close to this
threshold to reflect the reduction in AUM and profits for the year and to
ensure we can continue to pay a sustainable dividend in future years. We are
also rebalancing the split between the interim and final dividend, so that
distributions to shareholders are less heavily weighted towards the final
dividend, in line with common market practice.
"As part of the Board's capital management approach, we will also consider
returning to shareholders surplus capital through share buybacks, while also
ensuring there is sufficient capital available to fund future growth
opportunities when they arise. In line with this, we intend to return up to
£10 million of capital to shareholders before the end of the calendar year
through a share buyback programme, which, combined with our commitment to
funding the Company's expansion and our dividend policy, demonstrates our
confidence in the Company's future success."
- Ends -
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)
Montfort Communications
Gay Collins +44(0)77 9862 6282
Jack Roddan +44(0)78 2567 0695
impax@montfort.london (mailto:impax@montfort.london)
Peel Hunt LLP, Nominated Adviser and Joint Broker
Andrew Buchanan +44 (0)20 7418 8900
Dan Webster
Oliver Jackson
Berenberg, Joint Broker
James Felix +44 (0)203 207 7800
John Welch
Dan Gee-Summons
About Impax Asset Management
Founded in 1998, Impax is a specialist asset manager, with approximately
£25.3 billion of assets under management as of 31 March 2025 in both listed
and private markets strategies, investing in 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.
Chief Executive's Report
BUSINESS UPDATE
Impax's investment thesis is based on the insight that the transition to a
more sustainable economy is both highly likely, as individuals and businesses
prefer more efficient, less damaging goods and services, and also replete with
investment opportunities, particularly due to the mispricing that often
accompanies significant market developments in this area.
Recently, this thesis has been challenged by the idea that there's more money
to be made in digital technology, particularly focused on artificial
intelligence, and also by the impact of populist politics, especially in the
United States. Nevertheless, as described further below, although many of the
investment strategies that we manage lagged generic benchmarks during 2023 and
2024, there are strong signs that this period is behind us and that our
investment focus can once again deliver attractive returns.
At the end of the Period, the Company's assets under management and advice
("AUM") were £25.3 billion, compared to £37.2 billion at the start of the
financial year. In what was a notably volatile six months for investors,
global equity market performance was initially dominated by a tiny group of
stocks, and Impax was not immune as most investment managers targeting listed
equities underperformed generic indices. However, since the start of the
calendar year, our relative investment performance has improved: as at 30
April 2025 71% of our AUM had outperformed their generic benchmarks since 1
January 2025.
We have made further progress towards our strategic priorities, which include
enhancing our listed equities proposition and expanding our fixed income and
private markets capabilities to help diversify our product offering. We also
continue to focus on growing our direct channel distribution capabilities,
deepening our partnerships with selected third parties and refining our agile
and scalable operating model. After the Period end, we were pleased to close
our acquisition of the European assets of SKY Harbor Capital Management,
further extending our credit platform by adding ca. £1.1 billion in AUM.
We maintained tight control of our costs during the Period. In light of the
contraction of our AUM, we accelerated our efficiency programme without
materially reducing our capabilities or growth prospects.
We remain financially strong: the Company is a profitable and well capitalised
business, with no debt, net assets of £117 million and excellent prospects
for future expansion.
The Board's approach to capital management remains disciplined, and firmly
aligned to the Company's strategic priorities. We actively manage our capital
base to support sustainable value creation, maintain financial resilience and
preserve strategic flexibility in a dynamic, but challenging operating
environment.
Our dividend policy of paying out at least 55% of adjusted profit after tax
will continue; however, for the current financial year, we anticipate the
payout will be close to this threshold to reflect the reduction in AUM and
profits for the year and ensure we can continue to pay a sustainable dividend
in future years. We are also rebalancing the split between the interim and
final dividend, so that distributions to shareholders are less heavily
weighted towards the final dividend, in line with common market practice.
In seeking to maximise shareholder value, we continue to prioritise excellent
client service and investment in our business through seeding new products and
pursuing carefully targeted acquisitions.
We will also consider returning to shareholders surplus capital through share
buybacks, while also ensuring there is sufficient capital available to fund
future growth opportunities when they arise.
In line with this, we intend to return up to £10 million of capital to
shareholders through a share buyback programme before the end of the calendar
year, which combined with commitment to funding the Company's expansion and
our dividend policy demonstrates our confidence in the Company's future
success.
AUM movement for the Period
Listed Fixed Private markets Total
equities
income
£m
firm
£m
£m
£m
Total AUM at 30 September 2024 35,021 1,478 689 37,187
Net flows (10,022) (100) (83) (10,204)
Market movement, FX and performance (1,697) 44 3 (1,651)
Total AUM at 31 March 2025 23,302 1,422 609 25,332
MARKETS
At the start of the Period, global markets rose sharply but latterly became
notably volatile, as investors struggled to interpret the decisions of the new
US administration.
The highly unusual equity market circumstances that prevailed in the latter
half of calendar 2024 came to an abrupt end in January when Chinese artificial
intelligence developer DeepSeek shocked industry watchers with the release of
its new, cheaper, model, which caused a sell-off across the technology sector.
In February and March, market sentiment became more cautious as the looming
threat of tariffs, geopolitical tensions and a more hawkish stance from the US
Federal Reserve on interest rates combined to dampen investor confidence.
After the end of the Period, market conditions in April have been
extraordinary, with the collapse in market sentiment in the wake of so-called
"Liberation Day" on 2 April, followed by an eventual market recovery, as fears
over a major tariff-induced recession appeared to recede.
INVESTMENT PERFORMANCE
Impax offers actively managed listed equities strategies that use our thematic
taxonomies, as well as core equities and strategies in fixed income and
private markets.
Since January 2025, relative to generic indices, our listed equities
strategies have benefitted from the broadening of market performance away from
the US-listed mega-cap stocks that had dominated global equity returns over
the last two years and had been a particular feature in the first three months
of the Period. This relative outperformance has continued after Period end, as
the market dislocation caused by tariffs contributed to many of our investment
strategies outperforming their generic benchmarks.
For clients and market analysts, the traditional metrics of investment
performance continue to be cumulative returns relative to benchmark over one
year, three years and longer. In this context, most of our listed equities
strategies currently have relatively weak performance metrics; however, we
believe that the end of the exceptionally narrow market in 2023/2024 and the
recovery of our relative investment performance during calendar 2025 are
signals that market conditions are now much more favourable for our investment
strategies. Against this backdrop, we believe many asset owners are likely to
perceive a buying opportunity, benefiting active managers like Impax.
Our fixed income strategies meanwhile performed positively over the Period
both on an absolute basis and versus their benchmarks.
INVESTMENT TEAM DEVELOPMENTS
Our investment teams now comprise ca. 115 professionals, offering clients a
comprehensive service in listed equities, fixed income and private markets.
We have been planning for succession in our Listed Investments team and
recently announced the intention of Bruce Jenkyn-Jones, co-Chief Investment
Officer ("CIO"), Listed Investments, who has been a key member of our team for
over 25 years, to retire from the Company in June 2026. Bruce's colleague,
Charles French, will step up to become our sole CIO, Listed Investments, later
this year.
FIXED INCOME
We continue to prioritise the development of our fixed income platform to
diversify our product offering.
After the end of the Period, we were pleased to announce the closing of our
acquisition of the European assets of SKY Harbor Capital Management. This has
given us additional investment management capability in short-duration high
yield fixed income, as well as £1.1 billion of AUM, which will be reflected
in our next AUM update in July.
The SKY Harbor 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
20 investment professionals who are managing seven investment strategies and
AUM of ca. £2.5 billion.
PRIVATE MARKETS
Within private markets we continue to make good progress in exiting our third
fund, with 51% of the portfolio sold, including a 56 Megawatt wind portfolio
in Germany.
The fourth fund, which had raised €459 million by early 2024, has 13
investments, spread across seven countries and seven technologies. Recent
investments include an Irish electric vehicle charging company and rooftop
solar photovoltaic systems in Ireland and France.
The team continues to seek additional capital to make the most of our pipeline
of investment opportunities in this area.
CLIENT GROUP AND FLOWS
Our direct distribution capabilities remain focused on supporting the growth
of our own-label fund ranges in Europe and the US and to serve intermediary
and institutional investors globally. This activity is led by our Client
Group, which includes sales, client service, product development, and
marketing professionals in Europe, North America and Asia-Pacific.
Notable inflows during the Period arose through our Canadian distribution
partners and within our intermediary channel in the United States, targeting
financial advisors. In Europe, we received inflows via Danish institutional
and UK wealth clients, including allocations into our new Global Social
Leaders strategy.
Redemptions during the Period were dominated by the loss of two core equities
accounts from St. James's Place, which represented ca. 15% of our total AUM
and ca. 8% of our annualised revenue as at the end of January 2025. We also
saw a small number of account closures within our institutional channel, which
further contributed to the total net outflows of £10.2 billion.
We have seen a relative slow-down in outflows from our largest European
distribution partner, BNP Paribas Asset Management ("BNPP AM"), at £1.2
billion for the Period (H1 2024: £2.1 billion). BNPP AM continues to be our
largest client representing 35% of our AUM, and is also our largest
shareholder, owning ca. 13.8% of our issued share capital, as at the end of
the Period.
By the Period end our thematic strategies represented 69.5% (H1 2024: 59.3%)
and core equities strategies 22.5% (H1 2024: 36.0%) of the Company's total
AUM. This relative shift compared to last year primarily reflects the St.
James's Place account closures.
The AUM of our European UCITS fund range fell to £2.0 billion (H1 2024: £2.2
billion), with net outflows of £235 million. In the US, our own label fund
range's AUM fell to £6.1 billion (£7.0 billion), with net outflows of £341
million. In December 2024, we added to our UCITS range with the launch of a
Global Emerging Markets Opportunities fund. In fixed income, we now offer our
European clients four credit funds managed by our teams in Denmark and the US.
Our leadership was recognised by further awards 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.
Looking ahead to the second half of the year, we continue to be encouraged by
our pipeline, which currently includes the launch of several material new
accounts.
EFFICIENCY PROGRAMME
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 2022, 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
over 30 roles (ca. 10% of our headcount), reducing our run-rate annual costs
by ca. £11 million but without materially reducing our capabilities or growth
prospects.
At the end of our Period our headcount was 296, down from 315 on 30 September
2024.
FInANCIAL RESULTS FOR THE PERIOD
Financial Highlights for the Period
H1 2025 H1 2024 H2 2024
AUM £25.3bn £39.6bn £37.2bn
Revenue £76.5m £86.2m £84.0m
Adjusted operating profit £20.5m £25.8m £26.9m
Adjusted profit before tax £21.4m £27.4m £28.4m
Adjusted diluted earnings per share 12.6p 16.0p 16.2p
Adjusted operating costs £55.9m £60.3m £57.4m
IFRS operating profit £17.6m £24.1m £24.9m
IFRS profit before tax £18.6m £24.6m £24.4m
IFRS diluted earnings per share 9.7p 14.0p £14.2m
Revenue for the Period decreased to £76.5 million compared to both the first
and second half of 2024 (H1 2024: £86.2 million, H2 2024: £83.9 million)
owing to the reduction in AUM. Run-rate revenue fell to £126.3 million (30
September 2024: £177.1 million). At the end of the Period, the weighted
average run-rate revenue margin increased to 50 basis points (30 September
2024: 45 basis points) reflecting the loss of lower margin accounts.
Thanks to our focus on cost control and the early effects of our efficiency
programme, adjusted operating costs decreased to £55.9 million compared to
both H1 and H2 2024 (H1 2024: £60.3 million, H2 2024: £57.1 million). The
reduction in these costs partially offset the reduction in revenue to arrive
at adjusted operating profit for the Period of £20.5 million (H1 2024: £25.8
million, H2 2024: £26.9 million). Adjusted operating profit margin fell to
26.8% (H1 2024: 30.0%, H2 2024: 32.0%).
Adjusted profit before tax of £21.4 million (H1 2024: £27.4 million, H2
2024: £28.3 million) and adjusted diluted earnings per share of 12.6 pence
(H1 2024: 16.0 pence, H2 2024: 16.2 pence) include net finance income of £0.9
million (H1 2024: £1.5 million, H2 2024 £1.5 million).
IFRS profit before tax of £18.6 million (H1 2024: £24.6 million, H2 2024:
£24.4 million) and IFRS diluted earnings per share of 9.7 pence (H1 2024:
14.0 pence, H2 2024: 14.2 pence) includes £1.8 million of acquisition-related
charges, £1.7m of redundancy costs relating to the efficiency programme, a
£0.6 million gain relating to a reduction in the provision for national
insurance on equity schemes and £0.2 million of foreign exchange gains
attributable to the retranslation of assets held in foreign currencies.
TAX
The effective tax rate for the Period on IFRS profit increased to 32.7%
(FY2024 25.5%) as a result of the recognition of an additional tax charge
during the Period relating to the reduction in the level of tax credits on
Group share schemes that we expect to receive in the future. These credits
will be based on the share price when the awards vest but are estimated based
on the current share price. The effective tax rate on adjusted profit before
tax is 24.4% (FY2024: 25.3%).
FINANCIAL RESOURCES
The Company continues to retain high levels of cash reserves and no debt. Our
cash reserves, which include amounts invested in money market funds, were
£60.3 million at the Period end (H1 2024: £60.8 million). The Group
continues to maintain a strong capital base with a capital surplus at Period
end of £45.0 million.
DIVIDENDS
A final dividend for 2024 of 22.9 pence per share was paid in March 2025,
following approval at the Annual General Meeting. This took the total dividend
paid for FY2024 to 27.6 pence per share.
Our dividend policy is to pay, in normal circumstances, an annual dividend of
at least 55% of adjusted profit after tax. In light of the capital allocation
principles discussed above and to ensure that the dividend is set at a
sustainable level going forward, we anticipate that our total dividend for the
year will be close to this threshold and will also reflect the reduction in
AUM and profits for the year. As discussed above, we also intend to rebalance
the split between the interim and final dividend so it is not as heavily
weighted towards the final dividend as in the past, in line with common market
practice.
Accordingly, we are pleased to announce an interim dividend of 4.0p per share
(2024: 4.7p per share).
This dividend per share will be paid on 18 July 2025 to ordinary shareholders
on the shareholder register at the close of business on 13 June 2025. The
Company operates a dividend reinvestment plan ("DRIP"). The final date for
receipt of elections under the DRIP will be 27 June 2025. For further
information and to register and elect for this facility, please visit
www.signalshares.com and search for information related to the Company.
SHARE MANAGEMENT
The Board will consider using available capital to purchase the Company's
shares from time to time after due consideration of alternative uses of the
Company's cash and capital resources.
The Board of Directors has approved the commencement of a share buyback
programme in respect of the Company's shares for up to an aggregate maximum
consideration of £10 million (the "Programme"). The Programme will commence
immediately and will end no later than 31 December 2025. The shares will be
purchased in the open market and cancelled to reduce the Company's share
capital.
Separately, share purchases are also made by the Group's Employee Benefit
Trust ("EBT") (subject to the trustees' discretion), using funding provided by
the Company for the purpose of satisfying awards under the Company's share
plans.
During the Period, the EBT purchased 376,000 ordinary shares at a weighted
average price of £2.15 per share. At the Period end the EBT held a total of
4.7 million shares, 2.9 million of which were held for Restricted Share awards
leaving up to 1.7 million available for share option exercises and future
share awards. At the end of the Period, there were 2.8 million options
outstanding, of which 150,000 were exercisable.
OUTLOOK
Impax's investment thesis is based on the economic transition that is underway
as the world adopts cleaner, more efficient goods and services. While the
precise trajectory of this transition may be altered by external factors,
including policy decisions, its logic remains compelling and rational. This is
a powerful secular theme that we believe will continue to play out over many
years to come.
On a recent trip to visit clients in North America, I repeatedly heard how
this positioning continues to set us apart from our peers. As a specialist
investor in the transition to a more sustainable economy, we believe we have a
significant opportunity to grow at a time when some of our competitors are
either retreating from this area or are deciding instead to focus on poorly
defined concepts such as 'ESG investing'.
At the time of writing, markets remain fragile as investors continue to digest
geopolitical tensions and the implications of U.S. tariff policy. Our focus on
managing portfolios of high-quality securities provides our clients with
diversification and access to specific areas of the market, and we are
encouraged by the improvement in our relative investment performance since the
start of the calendar year.
Thank you for your continued support for and interest in Impax.
Ian Simm
Chief Executive
21 May 2025
Condensed Consolidated Income Statement
For the six months ended 31 March 2025
Notes Unaudited Unaudited Audited
Six months ended 31 March 2025
Six months ended 31 March 2024
Year ended
£000
£000
30 September 2024
£000
Revenue 76,461 86,150 170,113
Operating costs (58,903) (62,030) (121,086)
Finance income 5 1,727 1,893 3,946
Finance expense 6 (649) (1,453) (4,008)
Profit before taxation 18,636 24,560 48,965
Taxation 7 (6,092) (6,321) (12,488)
Profit after taxation 12,544 18,239 36,477
Earnings per share
Basic 8 9.8p 14.3p 28.5p
Diluted 8 9.7p 14.0p 28.2p
Adjusted results are provided in note 3.
Condensed Consolidated Statement of
Comprehensive Income
For the six months ended 31 March 2025
Unaudited Unaudited Audited
Six months ended 31 March 2025
Six months ended 31 March 2024
Year ended
£000
£000
30 September 2024
£000
Profit for the Period 12,544 18,239 36,477
Exchange differences on translation of foreign operations 1,297 (710) (1,644)
Total other comprehensive income 1,297 (710) (1,644)
Total comprehensive income for the Period attributable 13,841 17,529 34,833
to equity holders of the parent
All amounts in other comprehensive income may be reclassified to income in the
future.
The statement has been prepared on the basis that all operations are
continuing operations.
Condensed Consolidated Statement of Financial Position
For the six months ended 31 March 2025
Note Unaudited Unaudited Audited
As at
As at
As at
31 March
31 March
30 September 2024
2025
2024
£000
£000
£000
Assets
Non-current assets
Goodwill 10 12,273 12,501 11,869
Intangible assets 10 10,620 12,378 11,244
Property, plant and equipment 11 6,950 8,198 7,879
Deferred tax assets 2,793 3,887 4,222
Total non-current assets 32,636 36,964 35,214
Current assets
Trade and other receivables 34,626 39,229 36,870
Investments 12 16,631 15,364 15,993
Current tax asset 1,340 1,127 1,208
Cash invested in money market funds 13 38,352 44,103 67,797
Cash and cash equivalents 13 26,993 20,899 25,300
Total current assets 117,942 120,722 147,168
Total assets 150,578 157,686 182,382
Equity and liabilities
Equity
Ordinary shares 14 1,326 1,326 1,326
Share premium 9,291 9,291 9,291
Merger reserve 1,533 1,533 1,533
Exchange translation reserve 2,593 2,230 1,296
Retained earnings 101,871 103,471 117,677
Total equity 116,614 117,851 131,123
Current liabilities
Trade and other payables 26,651 31,012 42,687
Lease liabilities 11 1,865 1,957 2,084
Current tax liability 595 655 787
Total current liabilities 29,111 33,624 45,558
Non-current liabilities
Lease liabilities 11 4,853 6,211 5,701
Total non-current liabilities 4,853 6,211 5,701
Total liabilities 33,964 39,835 51,259
Total equity liabilities 150,578 157,686 182,382
Condensed Consolidated Statement of Changes in Equity
For the six months ended 31 March 2025
Share capital £000 Share premium £000 Merger reserve £000 Exchange translation reserve £000 Retained earnings Total equity £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 - - - - (30,132) (30,132)
Cash received on option exercises - - - - 359 359
Tax credit on long-term incentive schemes - - - - (63) (63)
Share based payment charge - - - - 3,375 3,375
Acquisition of own shares - - - - (7,175) (7,175)
Total transactions with owners - - - - (33,636) (33,636)
Profit for the Period - - - - 18,239 18,239
Other comprehensive income
Exchange differences on translation of foreign operations - - - (710) - (710)
Total other comprehensive income - - - (710) - (710)
31 March 2024 1,326 9,291 1,533 2,230 103,471 117,851
Transactions with owners of the Company
Dividends paid - - - - (6,169) (6,169)
Cash received on option exercises - - - - - -
Tax charge on long-term incentive schemes - - - - 82 82
Share based payment charge - - - - 3,321 3,321
Acquisition of own shares - - - - (1,266) (1,266)
Total transactions with owners - - - - (4,032) (4,032)
Profit for the Period - - - - 18,238 18,238
Other comprehensive income -
Exchange differences on translation of foreign operations - - - (934) (934)
Total other comprehensive income - - - (934) - (934)
30 September 2024 1,326 9,291 1,533 1,296 117,677 131,123
Transactions with owners of the Company
Dividends paid - - - - (30,064) (30,064)
Cash received on option exercises - - - - 350 350
Tax charge on long-term incentive schemes - - - - (92) (92)
Share based payment charge - - - - 2,265 2,265
Acquisition of own shares - - - - (809) (809)
Total transactions with owners - - - - (28,350) (28,350)
Profit for the Period - - - - 12,544 12,544
Other comprehensive income
Exchange differences on translation of foreign operations - - - 1,297 - 1,297
Total other comprehensive income - - - 1,297 - 1,297
31 March 2025 1,326 9,291 1,533 2,593 101,871 116,614
Condensed Consolidated Statement of Cash Flows
For the six months ended 31 March 2025
Note Unaudited Unaudited Audited Year ended 30 September 2024
Six months ended 31 March 2025 £000
Six months ended 31 March 2024 £000
£000
Operating activities:
Cash generated from operations 16 8,536 19,493 63,624
Corporation tax paid (4,960) (6,440) (12,988)
Net cash generated from operating activities 3,576 13,053 50,636
Investing activities:
Acquisition of property plant and equipment and intangible assets (414) (643) (1,074)
Investments into unconsolidated Impax funds (1,858) (4,903) (5,998)
Redemptions from unconsolidated Impax funds 750 3,883 4,824
Settlement of investment related hedges 179 (984) (1,167)
Payment of contingent consideration (23) - -
Investment income received 1,727 1,803 3,305
Decrease/(increase) in cash held by money market funds 29,445 9,439 (14,255)
Net cash generated from/(used by) investment activities 29,806 8,595 (14,365)
Financing activities:
Payment of lease liabilities (1,357) (654) (1,605)
Acquisition of own shares (809) (7,175) (8,441)
Cash received on exercise of Impax share options 350 359 359
Dividends paid (30,064) (30,132) (36,301)
Net cash used by financing activities (31,880) (37,602) (45,988)
Net increase/(decrease) in cash and cash equivalents 1,502 (15,954) (9,717)
Cash and cash equivalents at the beginning of the Period 25,300 37,963 37,963
Effect of foreign exchange rate changes 191 (1,110) (2,946)
Cash and cash equivalents at the end of the Period 13 26,993 20,899 25,300
Notes to the Condensed Consolidated Interim
Financial Statements
For the six months ended 31 March 2025
1 Basis of preparation
This interim report is unaudited and does not constitute statutory accounts
within the meaning of Section 435 of the Companies Act 2006. These condensed
consolidated interim financial statements have been prepared in accordance
with IAS 34 'Interim Financial Reporting' and the AIM rules. They do not
include all of the information required for full annual financial statements,
and should be read in conjunction with the consolidated financial statements
of the Group for the year ended 30 September 2024.
The comparative figures for the financial year ended 30 September 2024 are not
the Company's statutory accounts for that financial year. Those accounts,
prepared in accordance with international accounting standards in conformity
with the requirements of the Companies Act 2006 ("IFRS") and applicable law,
have been reported on by the Company's auditors and delivered to Companies
House. The report of the auditors was (i) unqualified, (ii) did not include a
reference to matters to which the auditors drew attention by way of emphasis
without qualifying their report, and (iii) did not contain a statement under
Section 498 (2) or (3) of the Companies Act 2006. Copies of these accounts are
available upon request from the Company's registered office at 7th floor, 30
Panton St, London, SW1Y 4AJ or at the Company's website: www.impaxam.com.
Going concern
The financial statements have been prepared on a going concern basis which the
Directors consider to be appropriate for the following reasons. Cash flow
forecasts covering a period of 12 months from the date of approval of these
financial statements indicate that, taking account of reasonably possible
downside assumptions in relation to asset flows, market performance and costs,
the Group will have sufficient funds to meet its liabilities as they fall due
and regulatory capital requirements for that period. The Group has sufficient
cash balances and no debt and, based on Period-end AUM, is profitable. A
significant part of the Group's cost basis is variable as bonuses are linked
to profitability. The Group can also preserve cash through dividend reduction
and through issuance of shares to cover share option exercises/restricted
share awards (rather than purchasing shares). Consequently, the Directors are
confident that the Group will have sufficient funds to continue to meet its
liabilities as they fall due for at least 12 months from the date of approval
of the financial statements and therefore have prepared the financial
statements on a going concern basis.
Accounting policies
The accounting policies applied by the Group in these condensed consolidated
interim financial statements are the same as those applied by the Group in its
consolidated financial statements for the year ended 30 September 2024.
New and forthcoming accounting standards applicable to the Group
No new accounting standards or interpretations issued or not yet effective are
expected to have an impact on the Group's condensed consolidated financial
statements.
2 Estimates
The preparation of interim financial statements requires management to make
judgements, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets and liabilities, income
and expense. Actual results may differ from these estimates.
The Group has not identified any significant judgements and estimates at the
end of the reporting Period. However the key areas that include judgement
and/or estimates are set out in note 10.
3 Adjusted profits and earnings
The reported operating earnings, profit before tax and earnings per share are
substantially affected by business combination effects and other items. The
Directors have therefore decided to report an adjusted operating profit,
adjusted profit before tax and adjusted earnings per share which exclude these
items in order to enable comparison with peers and provide consistent measures
of performance over time. A reconciliation of the adjusted amounts to the IFRS
reported amounts is shown below.
Six months ended 31 March 2025
Reported IFRS Adjustments Adjusted
£000
£000
Business combination effects Other
£000
£000
Income statement
Revenue 76,461 76,461
Operating costs (58,903) (55,945)
Amortisation of intangibles arising on acquisition 1,326
Acquisition equity incentive scheme charges 72
Costs relating to business acquisitions 418
Redundancy costs 1,745
Mark to market charge on equity awards (603)
Operating profit 17,558 1,816 1,142 20,516
Finance income 1,727 1,727
Finance expense (649) (219) (868)
Profit before taxation 18,636 1,816 923 21,375
Taxation (6,092) (5,213)
Mark to market tax charge on equity schemes 1,521
Tax on adjustments (411) (231)
Profit after taxation 12,544 1,405 2,213 16,162
Diluted earnings per share 9.7p 1.1p 1.7p 12.6p
Six months ended 31 March 2024
Reported IFRS Adjustments Adjusted
£000
(restated)**
£000
Business combination effects Other
£000
£000
Income statement
Revenue 86,150 86,150
Operating costs (62,030) (60,320)
Amortisation of intangibles arising on acquisition 1,286
Acquisition equity incentive scheme charges 396
Mark to market charge on equity awards 28
Operating profit 24,120 1,682 28 25,830
Finance income 1,893 1,893
Finance expense (1,453) 1,091 (362)
Profit before taxation 24,560 1,682 1,119 27,361
Taxation (6,321) (6,601)
Tax on adjustments (280)
Profit after taxation 18,239 1,682 839 20,760
Diluted earnings per share 14.0p 1.3p 0.6p 16.0p
The adjusted diluted earnings per share is calculated using the adjusted
profit after taxation shown above. The diluted number of shares is the same as
used for the IFRS calculation of earnings per share (see note 8). Similar
adjustments have been made, where relevant, for the year ended 30 September
2024 to give adjusted operating profit of £52,737,000, adjusted profit before
tax of £55,722,000 and adjusted diluted earnings per share of 32.2 pence.
Amortisation of intangibles
Intangible assets include management contracts acquired as part of the
acquisitions of Impax NH and Impax Denmark (together the "Acquisitions") and
are amortised over their 11-year and 10-year respective lives. 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.
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
restricted shares and share options some of which are either unvested or
unexercised at the balance sheet date. Employers' national insurance
contributions ("NIC") are payable on the options when they are exercised and
on restricted shares when they vest, based on the valuation of the underlying
shares at that point. The NIC liability is accrued over the vesting period
based on the share price at the balance sheet date with changes recognised in
IFRS profit. The Group also receives a corporation tax deduction equal to the
value of the awards at the time they are exercised/vest. This tax credit is
recognised as a deferred tax asset over the vesting period. The tax credit in
excess of the cumulative share-based payment expense is recognised directly in
equity with all other movements in the deferred tax assets included within the
IFRS tax charge.
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. They are therefore
eliminated when reporting adjusted profit.
Finance income and expense
Finance expense for the Period has been adjusted for foreign exchange gains
and losses on monetary assets that are not linked to the operating performance
of the Group. 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 has now been capitalised.
4 Segment Information
The Group is managed on an integrated basis and there is one reportable
segment.
Segment information is presented on the same basis as that provided for
internal reporting purposes to the Group's chief operating decision maker, the
Chief Executive.
5 Finance income
Six months ended Six months ended Year ended 30 September
31 March
31 March
2024
2025
2024
£000
£000
£000
Fair value gains - 90 624
Interest income 1,727 1,803 3,305
Gain on acquisition - - 17
1,727 1,893 3,946
6 Finance expense
Six months ended Six months ended Year ended 30 September
31 March
31 March
2024
2025
2024
£000
£000
£000
Interest on lease liabilities 199 217 416
Interest on earn-out 22 - 12
Fair value losses 274 - -
Foreign exchange losses 154 1,236 3,580
649 1,453 4,008
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.
7 Taxation
The UK tax rate for the half-year is 25%. The tax assessment for the Period is
higher than this rate. The differences are explained below:
Six months ended Six months ended Year ended 30 September
31 March
31 March
2024
2025
2024
£000
£000
£000
Profit before tax 18,636 24,560 48,965
Tax charge at 25% 4,659 6,140 12,241
Effects of:
Non-taxable income - (13) (30)
Non-deductible expenses and charges 1,472 718 780
Adjustment in respect of historical tax charges 205 (393) 163
Effect of lower tax rates in foreign jurisdictions (244) (131) (270)
Stamp duty paid - - 65
Recognition of prior year tax losses - - (461)
Total income tax expense 6,092 6,321 12,488
8 Earnings per share
Basic earnings per share ("EPS") is calculated by dividing the profit for the
year attributable to ordinary equity holders of the Parent Company (the
"Earnings") by the weighted average number of ordinary shares outstanding
during the year, less the weighted average number of own shares held. Own
shares are held in Employee Benefit Trusts ("EBTs"). Diluted EPS includes an
adjustment to reflect the dilutive impact of share awards.
Six months ended 31 March 2025 Earnings for the Period Shares Earnings per share
£000
'000
Basic 12,544 127,827 9.8p
Diluted 12,544 128,760 9.7p
Six months ended 31 March 2024
Basic 18,239 127,838 14.3p
Diluted 18,239 130,113 14.0p
Year ended 30 September 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.
Six months ended 31 March 2025 Six months ended 31 March 2024 Year ended
'000
'000
30 September 2024
'000
Weighted average issued share capital 132,597 132,597 132,597
Less weighted average number of own shares held (4,770) (4,759) (4,768)
Weighted average number of ordinary shares used in the calculation of basic 127,827 127,838 127,829
EPS
Additional dilutive shares regarding share schemes 4,088 5,339 5,354
Adjustment to reflect option exercise proceeds and future service from (3,155) (3,064) (4,003)
employees receiving awards/shares
Weighted average number of ordinary shares used in the calculation of diluted 128,760 130,113 129,180
EPS
9 Dividends
On 5 March 2025, at the Company's Annual General Meeting, the payment of a
22.9 pence per share final dividend for the year ended 30 September 2024
(2023: 22.9 pence per share) was approved. Combined with an interim payment of
4.7 pence this gave total dividends for the year ended 30 September 2024 of
27.6 pence. The Trustee of the Impax Employee Benefit Trusts waived the
Trusts' rights to part of the final dividend, leading to a total dividend
payment of £30,063,655 which was paid on 21 March 2025.
The Board has declared an interim dividend for the Period of 4.0 pence per
ordinary share (2024: 4.7 pence). This dividend will be paid on 18 July 2025
to ordinary shareholders on the register at close of business on 13 June 2025.
10 Goodwill and Intangible assets
The goodwill balance within the Group at 31 March 2025 arose from the
acquisition of Impax Capital Limited in 18 June 2001 and the acquisition of
Impax NH in January 2018.
Goodwill
£000
Cost
At 1 October 2023 12,883
Foreign exchange movement (382)
At 31 March 2024 12,501
Foreign exchange movement (632)
At 30 September 2024 11,869
Foreign exchange movement 404
At 31 March 2025 12,273
There were no brought forward impairment losses at 1 October 2024 or
impairment charges during the Period.
Intangible assets
Management contracts Software Total
£000
£000
£000
Cost
At 1 October 2023 29,200 600 29,800
Additions - - -
Foreign exchange movement (1,387) - (1,387)
At 31 March 2024 27,813 600 28,413
Additions 854 16 870
Foreign exchange movement (1,625) (1,625)
At 30 September 2024 27,042 616 27,658
Additions - 325 325
Foreign exchange movement 1,038 - 1,038
At 31 March 2025 28,080 941 29,021
Accumulated amortisation
At 1 October 2023 15,328 287 15,615
Charge for the period 1,286 58 1,344
Foreign exchange movement (924) - (924)
At 31 March 2024 15,690 345 16,035
Charge for the period 1,285 64 1,349
Foreign exchange movement (970) - (970)
At 30 September 2024 16,005 409 16,414
Charge for the period 1,326 66 1,392
Foreign exchange movement 595 - 595
At 31 March 2025 17,926 475 18,401
Net book value
At 31 March 2025 10,154 466 10,620
At 30 September 2024 11,037 207 11,244
At 31 March 2024 12,123 255 12,378
The management contracts acquired with the acquisitions of Impax NH and Impax
Denmark are amortised over an 11 year and 10 year life respectively.
Assets under management, forecast asset inflows, long-term operating margin,
discounted cost of capital are all the same or in excess of the assumptions
when the management contracts were first valued and as such, there are no
indicators of impairment.
11 Property, plant & equipment
Property plant and equipment
31 March 31 March 30 September
2025
2024
2024
£000
£000
£000
Right-of-use assets 5,615 6,593 6,362
Property, plant and equipment owned by the Group 1,335 1,605 1,517
6,950 8,198 7,879
The carrying value of the Group's right of use assets, associated lease
liabilities and the movements during the Period are set out below.
Lease arrangements
Right of use asset Lease
£000
liabilities
£000
At 1 October 2024 6,362 7,785
Lease payments - (1,357)
Interest expense - 199
Depreciation charge (809) -
Foreign exchange movement 62 91
At 31 March 2025 5,615 6,718
12 Current asset investments
The Group makes seed investments into its own Listed Equities funds and also
invests in its Private Equity funds. Where the funds are consolidated the
underlying investments are shown in the table below. Investments made in
unconsolidated funds are also included.
£000
At 1 October 2023 13,270
Additions 4,903
Fair value movements 1,074
Repayments/disposals (3,883)
At 31 March 2024 15,364
Additions 1,095
Fair value movements 475
Repayments/disposals (941)
At 30 September 2024 15,993
Additions 1,858
Fair value movements (470)
Repayments/disposals (750)
At 31 March 2025 16,631
An analysis of the investment by valuation technique hierarchy is disclosed
below:
31 March 2025 31 March 2024 30 September 2024
£000
£000
£000
Level 1 11,954 10,546 11,610
Level 2 - - -
Level 3 4,677 4,818 4,383
16,631 15,364 15,993
Level 1 means that valuation is made by reference to quoted prices in active
markets for the relevant securities.
Level 2 assets do not have regular market pricing but can be given a fair
value based on quoted prices in active markets.
Level 3 assets are those where there is no readily available market
information to value them and the asset value are based on models. They
represent investments in our private equity funds.
13 Cash reserves
Cash and cash equivalents under IFRS does not include cash invested in money
market funds which is exposed to market variability. However the Group
considers its total cash reserves to include these amounts. Cash held in
research payment accounts ("RPAs") is collected from funds managed by the
Group and can only be used towards the cost of researching stocks. A liability
of an equal amount is included in trade and other payables. This cash is
excluded from cash reserves. A reconciliation is shown below:
31 March 2025 31 March 2024 30 September 2024
£000
£000
£000
Cash and cash equivalents 26,993 20,899 25,300
Cash held in money market funds 38,352 44,103 67,797
Less: cash held in RPAs (5,071) (4,190) (2,297)
Total cash reserves 60,274 60,812 90,800
14 Share capital and own shares
31 March 2025 31 March 2024 30 September 2024
Issued and fully paid ordinary shares of 1 pence each
Number 132,596,554 132,596,554 132,596,554
£000s 1,326 1,326 1,326
31 March 31 March 30 September
2024
2023
2023
Own shares
Number 4,661,875 4,633,424 4,822,280
£000s 19,775 20,168 21,240
Own shares represents those held by the Impax Asset Management Group plc
Employee Benefit Trust 2012 (the "EBT") which are typically used to fund
exercise of options or awards of restricted shares. 376,000 shares were
purchased by the EBT in the six months ended 31 March 2025. The EBT
transferred 536,000 shares to option/restricted share holders on exercise of
options or to holders of restricted shares when the restrictions lapsed.
As at 31 March 2025, there were a total of 2.8 million options outstanding
over the Group's shares, of which 150,000 were exercisable. As at 31 March
2025, employees also held 3.8 million Restricted Shares over which the
restrictions lapse from June 2025 through to January 2030. Of these Restricted
Shares, 2.9 million are held in the EBT and included in the own shares numbers
shown above.
15 Related party transactions
Private equity funds managed by the Group, entities controlled by these funds
and the Global Resource Optimization Fund LP and Impax Global Opportunities
Fund LP are related parties of the Group by virtue of subsidiaries being the
General Partners to these funds. The Group earns management fees from these
entities.
BNP Paribas Asset Management Holdings ("BNP") is a related party of the Group
by virtue of owning a 13.8% equity holding as well as having a representative
on the Board of Directors. The Group sub-manages certain funds for BNP for
which it earns fees.
Other funds managed by subsidiaries of the Group are also related parties by
virtue of their management contracts.
Fees earned from the above related parties and amounts receivable are
disclosed within this note below. During the year two loan facilities were
provided to an executive director for the sole purpose of investment in funds
managed by the Group. The loans are provided at interest rates of 2.25% and
3.0% per annum on amounts drawn, calculated on a daily basis. Total interest
of €5,320 was accrued during the year and the total balance of the two loans
at the Period end was €199,923 (2024: €171,700).
Revenue earned from and operating costs for related parties of the Group are
as shown in the table below.
Six months ended 31 March 2025 Six months ended 31 March 2024 Year ended
£000
£000
30 September 2024
£000
Revenue 74,964 84,405 167,962
Operating costs 238 542 911
Investments in related parties of the Group and trade and other receivables
due from related parties are as shown in the table below.
31 March 31 March 30 September
2025
2024
2024
£000
£000
£000
Current asset investments 15,804 14,578 15,145
Trade and other receivables 27,111 31,290 29,485
16 Reconciliation of net cashflow from operating activities
This note should be read in conjunction with the Condensed Consolidated
Statement of Cash Flows. It provides a reconciliation of how profit before
tax, which is based on accounting rules, translates to cashflows.
Six months ended 31 March 2025 Six months ended 31 March 2024 Year ended 30 September 2024
£000
£000
£000
Profit before taxation 18,636 24,560 48,965
Adjustments for:
Depreciation of property plant and equipment and amortisation of intangible 2,487 2,447 4,578
assets
Finance income (1,727) (1,893) (3,946)
Finance expense 649 1,453 4,008
Share-based payment charges 2,265 3,375 6,696
Loss/(gain) on disposals of property, plant and equipment - 34 (22)
Adjustment for statement of financial position movements:
Decrease in trade and other receivables 2,244 3,314 5,815
Decrease in trade and other payables (16,018) (13,797) (2,470)
Cash generated from operations 8,536 19,493 63,624
17 Group risks
The Group's principal risks remain as detailed within the Directors' report of
the Group's 2024 Strategic Report.
18 SUBSEQUENT EVENTS
On 1 April 2025, the Group completed the acquisition of £1.1bn of
European-based fixed income assets from SKY Harbor Capital Management ("SKY").
As part of the acquisition, certain key employees of SKY have joined the Impax
Group. Upfront consideration of £4.6 million was paid on completion.
Additionally, contingent consideration is payable if certain conditions are
met at 12 months from the signing date. Currently, the likelihood of a further
payment being required is considered remote.
On 21 May 2025, the Board of Directors approved the commencement of a share
buyback programme in respect of the Company's shares for up to an aggregate
maximum consideration of £10 million (the "Programme"). The Programme will
commence immediately and will end no later than 31 December 2025. The shares
will be purchased in the open market and cancelled to reduce the Company's
share capital.
Independent Review Report
to Impax Asset Management Group plc
CONCLUSION
We have been engaged by Impax Asset Management Group PLC ("the Company") to
review the condensed set of financial statements in the half-yearly report for
the six months ended 31 March 2025 which comprises Condensed Consolidated
Income Statement, Condensed Consolidated Statement of Comprehensive Income,
Condensed Consolidated Statement of Financial Position, Condensed Consolidated
Statement of Changes in Equity, Condensed Consolidated Statement of Cash Flows
and the related explanatory notes.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
report for the six months ended 31 March 2025 is not prepared, in all material
respects, in accordance with IAS 34 Interim Financial Reporting as adopted for
use in the UK and the AIM Rules.
BASIS FOR CONCLUSION
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410 Review of Interim Financial Information Performed by the
Independent Auditor of the Entity ("ISRE (UK) 2410") issued for use in the UK.
A review of interim financial information consists of making enquiries,
primarily of persons responsible for financial and accounting matters, and
applying analytical and other review procedures. We read the other information
contained in the half-yearly report and consider whether it contains any
apparent misstatements or material inconsistencies with the information in the
condensed set of financial statements.
A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and consequently does not enable
us to obtain assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not express an audit
opinion.
CONCLUSIONS RELATING TO GOING CONCERN
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention that causes us to believe that the directors
have inappropriately adopted the going concern basis of accounting, or that
the directors have identified material uncertainties relating to going concern
that have not been appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with
ISRE (UK) 2410. However, future events or conditions may cause the Group to
cease to continue as a going concern, and the above conclusions are not a
guarantee that the Group will continue in operation.
DIRECTORS' RESPONSIBILITIES
The half-yearly report is the responsibility of, and has been approved by, the
directors. The directors are responsible for preparing the half-yearly report
in accordance with the AIM Rules.
As disclosed in note 1, the annual financial statements of the Group are
prepared in accordance with UK-adopted international accounting standards.
The directors are responsible for preparing the condensed set of financial
statements included in the half-yearly report in accordance with IAS 34 as
adopted for use in the UK.
In preparing the condensed set of financial statements, the directors are
responsible for assessing the Group's ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to
liquidate the Group or to cease operations, or have no realistic alternative
but to do so.
OUR RESPONSIBILITY
Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the half-yearly report based on our review. Our
conclusion, including our conclusions relating to going concern, are based on
procedures that are less extensive than audit procedures, as described in the
Basis for conclusion section of this report.
THE PURPOSE OF OUR REVIEW WORK AND TO WHOM WE OWE OUR RESPONSIBILITIES
This report is made solely to the Company in accordance with the terms of our
engagement. Our review has been undertaken so that we might state to the
Company those matters we are required to state to it in this report and for no
other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the Company for our review work,
for this report, or for the conclusions we have reached.
Alison Allen
for and on behalf of KPMG LLP, Statutory Auditor
Chartered Accountants
15 Canada Square,
London,
E14 5GL
21 May 2025
Alternative Performance Measures
The Group uses the following Alternative Performance Measures ("APMs").
ADJUSTED OPERATING PROFIT, ADJUSTED PROFIT BEFORE TAX AND ADJUSTED PROFIT AFTER TAX
These APMs exclude the impact of the following items:
· amortisation of intangible assets which arose on the
acquisition of Impax NH
· charges in respect of equity incentive scheme related to the
acquisition of Impax NH
· mark-to-market credits and charges in respect of national
insurance payable on share awards
· foreign exchange gains and losses on the retranslation of
monetary assets that are not linked to the operating performance of the Group
· tax charges as a result of mark-to-market changes in tax
credits in respect of employee share schemes
These performance measures are reported as they facilitate comparison with
prior periods and provide an appropriate comparison with our peers. Excluding
amortisation of intangible assets arising from acquisitions is consistent with
peers and therefore aids comparability. It also aids comparison to businesses
which have grown organically, and do not have such charges. Mark-to-market
credits and charges in respect of national insurance are excluded as they
arise due only to changes in the share price and therefore do not reflect the
operating performance of the Group. Foreign exchange gains and losses on the
retranslation of monetary assets are excluded as they are not linked to the
operating performance of the Group.
A reconciliation to the relevant IFRS terms is provided in note 3 of the
financial statements.
ADJUSTED OPERATING MARGIN
This is calculated as the ratio of adjusted operating profit to revenue. This
number is reported as it gives a good indication of the underlying
profitability of the Company and how this has changed year-on-year.
ADJUSTED DILUTED EARNINGS PER SHARE
This is calculated as the adjusted profit after tax divided by the diluted
number of shares used in the calculation of IFRS diluted earnings per share.
This is used to present a measure of profitability per share in line with
adjusted profits.
A reconciliation to IFRS diluted earnings per share is shown in note 3 of the
financial statements.
RUN-RATE REVENUE AND RUN-RATE ADJUSTED OPERATING PROFIT
Run-rate revenue is the revenue that the Group would report if the AUM for the
year remained static at that shown at 31 March and fee rates were those at 31
March. Run-rate revenue margin is the ratio of run-rate revenue to AUM.
Run-rate adjusted operating profit is the run-rate revenue less adjusted
operating costs for the month of March extrapolated for 12 months. Adjustments
are made to exclude any one-off items.
Run-rate numbers are reported as they give a good indication of the current
profitability of the Group.
CASH RESERVES
Cash reserves is the sum of cash and cash equivalents and cash held in money
market accounts or fixed term deposit accounts less cash held in research
payment accounts and cash held by consolidated funds.
The calculation of cash reserves is shown in note 13 to the financial
statements.
Cash reserves are reported as they give a good indication of the total cash
resources available to the Group.
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