Impax Environmental Markets underperforms benchmark in first half

(Alliance News) - Impax Environmental Markets PLC on Monday reported weak first-half performance falling short of its benchmark as shares continue to trade at a discount.

The London-based environmental markets investment trust said net asset value fell 1.3% to 429.3 pence per share in the first half that ended June 30 from 434.9p at December 31.

NAV total return stood at negative 0.5%, underpeforming the benchmark MSCI AC World Index which returned 12% for the period.

Net assets increased 8.8% to GBP1.11 billion from GBP1.22 billion.

On Tuesday, IEM raised its interim dividend by 5.9% to 1.8p per share from 1.7p last year.

Chair Glen Suarez said: "There have been continued challenges and upheavals in the macroeconomic environment which have created an uncertain backdrop generating headwinds for the small- and mid-cap companies in which IEM invests.

"With ongoing cost reductions and favourable policies, renewable energy's economic appeal is growing, accelerating the shift to sustainable energy."

The ordinary share price discount to NAV increased to 9.6% from 7.9% which the company viewed as "disappointing" considering 21.8 million shares, or 7.7% of issued share capital, was repurchased over the six months.

"The board will continue to exercise its authority to buy back or issue shares depending on the circumstances and when in the interests of shareholders," IEM said.

IEM shares were flat at 386.48 pence each in London on Monday morning.

By Elijah Dale, Alliance News reporter

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