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18 Sep 2008 09:17
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Impax Group plc
Pre-close update
Impax Group plc ("theΒ Company"), the AIM quoted investment managementΒ companyΒ targeting the environmental sector, today announces a pre-close statement for the year toΒ 18Β September 2008, ahead of theΒ publication of itsΒ preliminary resultsΒ expectedΒ on 11 December 2008.
The Company has performed strongly this year and the board expects its results to beΒ materiallyΒ ahead of market expectations. Despite falling equity markets, assets under management and advisory have increased from Β£983 million at theΒ end of September 2007 to Β£1.184Β billionΒ onΒ 12Β September 2008.
The Company'sΒ listed equities division has done well for two reasons. First, the equity portfolios in which we invest have held up relatively well, reflecting the robust earnings growth of our holdings. Between the end of the interim period on 31 March andΒ 12Β September 2008, the net asset value of Impax Environmental Markets plc hadΒ fallenΒ byΒ 3.2Β per cent, a significant out-performance over the MSCIΒ World Index, which was down 10.5Β per cent over the same period.
Second,Β in spite of difficult market conditions,Β the CompanyΒ hasΒ seen strong inflows from institutional investors, who have committed capital to both pooled funds and segregated mandates. In the latter area, we wereΒ recentlyΒ appointedΒ to manage assets for theΒ UK'sΒ Environment Agency Pension Fund, whileΒ earlier this yearΒ Russell InvestmentsΒ asked the CompanyΒ to manage a dedicated environmental portfolio. When the equity markets recover, we expect to enjoy growth from bothΒ areas.
The Company'sΒ privateΒ equityΒ divisionΒ has alsoΒ enjoyed aΒ veryΒ successful year, andΒ ourΒ teams have madeΒ several new investments. In particular, following furtherΒ investments byΒ Impax New Energy Investors LP, a fundΒ targetingΒ renewableΒ power projects, we are well placed to raise additional capital for thisΒ strategy.
Cash generation has been strong in 2008, enablingΒ the CompanyΒ to investΒ furtherΒ inΒ theΒ people andΒ otherΒ resources necessary to extendΒ itsΒ platform. With theΒ Company restored toΒ sustainableΒ financial health, the boardΒ intendsΒ toΒ proposeΒ the payment of a smallΒ maidenΒ dividend. AΒ resolution toΒ this effect will be includedΒ when the preliminary results are released.
Equity marketsΒ continue to struggle in the wake of ongoing bad news from the financial sector and sustained worries about the health of the global economy. In the present conditions it isΒ difficultΒ to express a strong view on the timing of a recovery. However,Β when better sentiment returns,Β the board is confident thatΒ the Company isΒ well positioned for further growth.
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