Impax Asset Management Group plc (LON:IPX), the specialist investor focused on the transition to a more sustainable global economy, has announced final audited results for the year ending 30 September 2025.
Business highlights
· Assets under management (AUM) £26.1 billion (2024: £37.2 billion)
· Net flows of (£13.0 billion) (2024: (£5.8 billion))
· Challenging market for active investment managers
· Net outflows stabilising: improving trend in second half of the financial year
· Impax’s equity strategies offer compelling fundamentals and valuations
· Positive momentum towards strategic priorities: closed SKY Harbor acquisition
· Reduced cost base and headcount without impacting capabilities or growth plans
· Financial strength maintained, updated dividend policy and ongoing £10 million share buyback (89% completed to date)
Financial highlights: Key Performance Indicators
· Revenue decreased by 16.6% to £141.9 million (2024: £170.1 million)
· Adjusted operating profit decreased by 36.2% to £33.6 million (2024: £52.7 million)
· Adjusted operating margin of 23.7% (2024: 31.0%)
· IFRS Profit before tax decreased by 43.1% to £27.8 million (2024: £49.0 million)
· Adjusted diluted earnings per share decreased by 33.9% to 21.3p (2024: 32.2p)
· IFRS diluted earnings per share decreased by 44% to 15.8p (2024: 28.2p)
· Proposed final dividend of 8.0p per share bringing total dividend per share to 12.0p (2024: 27.6p) representing 55.7% of adjusted profit after tax, in line with stated policy
· Strong balance sheet, with cash reserves of £64.7 million (2024: £90.8 million)
Simon O’Regan, Chair, commented:
“Followers of Impax will be aware of the challenging first two quarters that the business experienced during the Period. The acquisition of an additional fixed income business unit, a stabilisation of net outflows and positive market performance in the second half of the year contributed to AUM ending the Period at £26.1 billion (30 September 2024: £37.2 billion).
“The Board’s approach to capital management remains firmly aligned to the Company’s strategic priorities. In May we announced an update to our capital allocation policy, which included a confirmation of our dividend policy and launching a £10 million share buy-back programme, which is due to conclude at the end of December 2025.
“We believe that despite the challenges of the first half of the year, Impax’s long-term investment theme, strategic progress and its financial strength position the business for future growth.”
Ian Simm, Chief Executive, added:
“After a challenging first half, the second half of Impax’s financial year has been much more positive. Assets under management and advice expanded moderately from £25.3 billion on 31 March 2025 to close the financial year ending 30 September 2025 at £26.1 billion, having initially fallen from £37.2 billion on 1 October 2024.
“The reduction in AUM led to lower annual revenues of £141.9 million (2024: £170.1 million) and a decrease in adjusted operating profit to £33.6 million (2024: £52.7 million). In response, we took steps to resize our cost base: adjusted annual operating costs fell to £108.2 million, down from £117.4 million in the prior year.
“During the Period we made significant progress towards our key strategic priorities. In particular, the completion of the acquisition of a business unit specialising in short-duration high-yield strategies enhances our ability to serve clients across a broader range of investment solutions which currently cover listed equities, fixed income and private markets.
“For around three years, equity markets have been driven largely by AI-related and other ‘momentum’ stocks, while investors are contending with greater uncertainty. Against this backdrop, we continue to invest in companies harnessing long-term, durable growth trends such as demographic shifts, technological advancement, and rising consumption. Stocks of these companies have often lagged generic indices, but many currently trade at compelling valuations with strong fundamentals.
“We remain highly confident in the outlook for Impax, underpinned by our compelling investment thesis and differentiated competitive positioning. The economic case for the transition to a more sustainable economy continues to build, as consumers increasingly prefer more efficient, less polluting goods and services.
“Despite the challenging backdrop, the Company remains profitable, debt-free, and well capitalised, with net assets of £115.2 million and a strong balance sheet.”
