Last checked at 18 Sep 2008 09:17
Impax Group plc
Pre-close update
Impax Group plc ("the Company"), the AIM quoted investment management company targeting the environmental sector, today announces a pre-close statement for the year to 18 September 2008, ahead of the publication of its preliminary results expected on 11 December 2008.
The Company has performed strongly this year and the board expects its results to be materially ahead of market expectations. Despite falling equity markets, assets under management and advisory have increased from £983 million at the end of September 2007 to £1.184 billion on 12 September 2008.
The Company's 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 and 12 September 2008, the net asset value of Impax Environmental Markets plc had fallen by 3.2 per cent, a significant out-performance over the MSCI World Index, which was down 10.5 per cent over the same period.
Second, in spite of difficult market conditions, the Company has seen strong inflows from institutional investors, who have committed capital to both pooled funds and segregated mandates. In the latter area, we were recently appointed to manage assets for the UK's Environment Agency Pension Fund, while earlier this year Russell Investments asked the Company to manage a dedicated environmental portfolio. When the equity markets recover, we expect to enjoy growth from both areas.
The Company's private equity division has also enjoyed a very successful year, and our teams have made several new investments. In particular, following further investments by Impax New Energy Investors LP, a fund targeting renewable power projects, we are well placed to raise additional capital for this strategy.
Cash generation has been strong in 2008, enabling the Company to invest further in the people and other resources necessary to extend its platform. With the Company restored to sustainable financial health, the board intends to propose the payment of a small maiden dividend. A resolution to this effect will be included when the preliminary results are released.
Equity markets 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 is difficult to express a strong view on the timing of a recovery. However, when better sentiment returns, the board is confident that the Company is well positioned for further growth.