The second half of the financial year saw a dramatic fall in assets under management (AUM) at Impax Asset Management, but since the end of September the downward trend has been reversed.
The investment management firm, which focuses on the environmental sectors, said AUM at the end of September stood at £1,896m, up from £1,823m a year earlier but down from £2,362m at the end of March.
The group saw strong net inflows in the first half of the financial year but these were offset by falling equity markets in the second half.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Things have picked up a bit since the end of the reporting period, with AUM rising to £1,980m at the end of October.
"After a relatively encouraging start, 2011 has proven to be a challenging year for investors. Signs of a faltering economy became more frequent during the year and, from June, political paralysis both in the United States and in the Eurozone undermined confidence in many markets. In this context, Impax has delivered a creditable performance," claimed company chairman, Keith Falconer.
Revenue in the year to September 30th climbed to £20.93m from £15.34m the year before. Profit before tax slumped to £1.72m from £5.18m, as a share-based payment charge took a £3.65m bite out of profits. Investment income was also a lot lower this time round, dropping to £0.17m from £1.20m last year, which further dented profits.
In future, the company expects to receive up to £1.7m of corporation tax benefits to offset the charges relating to its historical share-based inventive schemes.
Diluted basic earnings per share fell to 0.93p from 3.49p last year. Diluted adjusted earnings per share, adjusted to exclude the charge for share schemes satisfied by the issue of primary shares, rose to 3.74p.
At the end of the financial year cash reserves held by operating entities of the group were £20.0m, up from £8.3m a year earlier. The group remained debt free during the reporting period.
The board is recommending a dividend of 0.7p, up from last year's 0.6p.
"At the time of writing, with no visibility on a solution to the Eurozone's debt problems and an on-going impasse in the United States over plans to address the budget deficit, it is difficult to be optimistic about the short-term prospects for equity markets," conceded Impax's chief executive, Ian Simm.
"Evidence continues to build that investments in environmental markets have compelling characteristics, and, with a long track record, a strong and stable investment team and a robust balance sheet, the company should be well positioned, both to withstand short-term headwinds and to expand when market sentiment improves," Simm maintained.
The share price rose 1.5p to 43p on the figures.
--
jh
-
FTSE 100 hits record highs – why is it rising and will we see more gains?Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
-
How to invest in copperIt may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
