Impax Asset Management reports lower interim revenue, profit

(Sharecast News) - Impax Asset Management reported lower interim revenue and profit on Wednesday, as net outflows continued to weigh on assets under management, though the sustainable investment specialist said investment performance had improved meaningfully since January.

The AIM-traded company said assets under management fell to £22.3bn at 31 March, from £26.1bn at the end of September and £25.3bn a year earlier.

Revenue for the six months ended 31 March declined to £58.8m from £76.5m in the first half of 2025, while adjusted operating profit fell to £11.3m from £20.5m.

Adjusted operating margin narrowed to 19.2% from 26.8%.

IFRS profit before tax declined to £8.2m from £18.6m, while adjusted diluted earnings per share fell to 7.4p from 12.6p.

IFRS diluted earnings per share were 4.4p, compared with 9.7p a year earlier.

The interim dividend was reduced to 2.0p per share from 4.0p.

Cash reserves stood at £46.0m at the period end, down from £60.3m a year earlier and £64.7m at the end of September.

Impax said previous underperformance in "narrow" equity markets was still driving net outflows, though outflows from intermediary clients had moderated.

It added that 70% of assets under management had outperformed benchmarks in the 2026 calendar year to 30 April, helped by broader markets and stock selection in its active thematic listed equities strategies.

The company said it remained focused on product diversification and building strategic client partnerships, while pursuing targeted cost reductions without losing capabilities.

It said it was expanding its offering across actively managed listed equities, systematic equities, fixed income and private markets, including the launch of its first US exchange-traded fund.

Chief executive Ian Simm said investment performance had improved meaningfully from January onwards, but that net outflows during the period had affected assets under management and revenue.

"We remain confident that the fundamentals supporting our global position as a specialist investor continue to strengthen and that our strategy positions us well for a return to growth," Simm said.

He said the latest Middle East conflict had increased focus among policymakers and companies on energy security, while spending on energy-efficient equipment was continuing to rise across buildings, transport and industrial sectors.

Simm added that Impax entered the second half with financial strength, supported by a robust balance sheet, healthy liquidity and disciplined capital and cost management.

At 1051 BST, shares in Impax Asset Management Group were down 3.52% at 99.76p.

Reporting by Josh White for Sharecast.com.

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