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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Impax Asset Management Group Plc | LSE:IPX | London | Ordinary Share | GB0004905260 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 13.00 | 2.77% | 482.00 | 479.50 | 482.50 | 483.50 | 465.00 | 470.00 | 271,733 | 16:35:09 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Investment Advice | 178.64M | 39.22M | 0.3057 | 15.78 | 619.15M |
From May 2019 to May 2024
TIDMIPX
RNS Number : 7934E
Impax Asset Management Group plc
11 May 2017
Impax Asset Management Group plc - Interim results to 31 March 2017
London, 11 May 2017 - Impax Asset Management Group plc ("Impax" or the "Company"), the AIM quoted investment manager focused on environmental markets and related resource efficiency sectors, today announces its interim results for the six months to 31 March 2017 (the "Period").
H1 highlights
-- AUM(1) increased 27% to GBP5.7 billion at Period end, and further to GBP6.0 billion on 30 April 2017
-- Total net inflows of GBP870 million during the Period
-- Robust investment performance in Listed Equities and significant growth across all strategies
-- Strong progress on Real Assets fundraising -- Revenue in first half of 2017 was GBP13.9 million (H1, 2016: GBP9.4 million) -- Operating earnings(2) were GBP3.2 million (H1, 2016: GBP1.6 million) -- Profit before tax was GBP2.4 million (H1, 2016: GBP2.1 million) -- Diluted earnings per share were 2.11 pence (H1, 2016: 1.35 pence) -- Interim dividend increased by 40% to 0.7 pence per share
Ian Simm, Chief Executive, commented:
"Impax has had a strong first half year. Our AUM has now reached a new peak of GBP6 billion and we can report record net inflows and significant progress with fundraising for our new private equity renewable infrastructure fund."
"We are seeing sustained interest from investors in many countries who are looking to access superior expected returns. With the Company's assets under management recently passing the GBP6 billion milestone, we continue to scale existing products across both Listed Equities and Real Assets, while also considering the development of our product range in response to client interest."
The presentation for shareholders and analysts will be available to view on our website later today: https://www.impaxam.com/investor-relations/reports-and-presentations
Impax will host a webinar for investors to present the Interim Results and provide a business update, followed by a Q&A with Ian Simm, Chief Executive and Charlie Ridge, Chief Financial Officer, on Thursday 11 May at 12.30pm. Please register for this event here:
https://www.equitydevelopment.co.uk/2017/05/03/impax-asset-management-group-interim-results-webinar-thursday-11th-may-12-30pm/
(1) Assets under management and advice
(2) Revenue less operating costs
Enquiries:
Ian Simm Tel: + 44 (0) 20 7434 1122 (switchboard)
Chief Executive
Impax Asset Management Group plc
www.impaxam.com
Anne Gilding Tel: +44 (0) 20 7434 1122 (switchboard)
Head of Brand & Communications Tel: +44 (0) 20 7432 2602 (direct) Impax Asset Management Group plc Tel: +44 (0) 7881 249612 (mobile) www.impaxam.com Email: a.gilding@impaxam.com Guy Wiehahn or Rishi Shah Tel: +44 (0) 20 7418 8900
Nominated Adviser
Peel Hunt LLP
Chief Executive's Statement
"We are seeing sustained interest from investors in many countries who are looking to access superior expected returns over the long term. With assets under management at a new peak of GBP6.0 billion(1) , we continue to scale our existing products, while developing our product range in response to client demand."
Over the period from 1 October 2016 to 31 March 2017 (the "Period"), Impax Asset Management Group plc ("Impax" or the "Company"), grew its assets under management and advisory ("AUM") by 27 per cent to a new peak of GBP5,711 million, comprising positive investment performance and record net inflows of ca. GBP870 million across Listed Equities and our Private Equity Renewable Infrastructure Funds. On 30 April 2017, AUM were GBP6.0 billion.
This growth has been achieved despite rising political tension around the world. Investors are concerned about a lengthening list of issues, including the outcome of a series of elections across Europe, the stability of the Euro, continuing unrest across the Middle East, signs of tension in East Asia and the future of US-Chinese trade relations. These unknowns make it increasingly difficult to navigate uncertain and often conflicting economic forecasts.
Against this more volatile backdrop, our listed equity funds have proved their resilience and delivered robust returns for investors. We have continued to receive strong inflows, particularly from asset owners in North America and Continental Europe. We have also achieved further exits from our existing private equity funds and received further commitments to our third fund. Our mandate pipeline across both listed equities and real assets is most encouraging.
Despite President Trump's negative proclamations on climate change and the environment, the markets in which we invest have remained robust - there is considerable support across Congress for the further development of renewable energy, and more investment is being targeted to increase the resilience of water supplies. Any efforts to roll back existing pollution regulations are likely to face stiff legal challenges.
Furthermore, the response from the international community to President Trump's pre-election threat to "cancel" the 2015 Paris Climate Agreement has been to strengthen support for the treaty, with China, crucially, reiterating its commitment to leading the development of policy to reduce carbon dioxide emissions.
Developments in Environmental and Resource Efficiency Markets
Environmental markets continue to evolve and the number of companies active in these sectors has again risen. For example, companies that are improving resource productivity are increasingly deploying business models based on advanced software and the manipulation of large datasets. We are encouraged by the growth and high returns on capital that these businesses offer to investors, particularly in the rail, water, electricity, agriculture and real estate sectors. Similarly, the transition to ultra-low emission vehicles and the potential adoption of autonomous vehicles are yielding many new investment prospects while unsettling incumbents in traditional industries, such as vehicle assembly.
The food, agriculture and forestry sector is also giving rise to an increasing number of investable businesses. Here, the value chain is being disrupted by a range of environmental and resource challenges, including climate change and soil degradation, as well as tightening regulation and changing consumer preferences. Companies that are swift to identify and exploit the opportunities that these changes bring are set to reap significant benefits and undergo rapid growth. We are finding value in companies that are investing in innovation in these markets.
Financial results for the Period
Revenue for the six months to 31 March 2017 was GBP13.9 million (H1 2016: GBP9.4 million; H2 2016: GBP11.7 million) and the annualised run rate at the end of the Period was GBP30.6 million. Operating earnings(2) for the Period were GBP3.2 million (H1 2016: GBP1.6 million; H2 2016: GBP2.6 million) and the associated operating margin was 23 per cent (H1 2016: 17 per cent; H2 2016: 22 per cent). Operating costs include a GBP0.4 million increase in employer's National Insurance Contribution ("NIC") due to the sharp rise in the price of Impax shares over the Period, which is offset by a similar corporation tax credit. Profit-related remuneration increased in line with operating earnings.
The result for the Period was a profit before tax ("PBT") of GBP2.4 million (H1 2016: GBP2.1 million; H2 2016: GBP3.1 million) and the earnings per share for the Period were 2.11 pence (H1 2016: 1.35 pence; H2 2016: 2.27 pence). PBT was impacted by the increased NIC charge referred to above, and also by net hedging losses on seed investments of GBP0.5 million (H1 2016: GBP0.3 million gain; H2 2016: GBP0.6 million gain).
Dividends
At the Annual General Meeting on 8 March 2017, shareholders approved payment of a dividend of 1.6 pence per share, taking the total dividend for the year ended 30 September 2016 to 2.1 pence per share (2015: 1.6 pence (plus special dividend of 0.5 pence). The Board is declaring an interim dividend for the Period of 0.7 pence per share (2016: 0.5 pence). This will be paid on 23 June 2017 to ordinary shareholders on the shareholder register at the close of business on 26 May 2017. The Company operates a dividend reinvestment plan ('DRIP'). The final date for receipt of elections under the DRIP will be 29 May 2017. For further information and to register and elect for this facility, simply visit www.signalshares.com
Listed Equities
During 2016, our listed equity strategies extended their strong track record relative to global markets, in spite of the strong positive performance of financials and energy stocks (where our strategies have little or no exposure) during the final three months of the year. In the first quarter of 2017 we have seen some consolidation, but overall the strategies have delivered a solid performance during the Period, with our Water and Asia funds significantly ahead of their environmental comparators. We are currently finding value in Europe and many developing markets.
Real Assets
In November 2016, we announced the first close of our third private equity fund ("NEF3"), which targets renewable energy investments across Europe. Subsequently, two existing clients increased their initial investments, and we have also secured two new clients. Commitments to this fund are now EUR185 million, which includes a EUR44 million subscription from the EIB (which has agreed to commit up to a further EUR31 million dependent on the final fund size). We continue to engage with existing clients and new prospects on further fundraising and the pipeline is encouraging. We hope to see additional significant inflows before final close, the deadline for which is the end of February 2018. Plans for the new fund's first investments are at an advanced stage.
We are also making progress to sell the remaining assets in NEF II, particularly 102MW of generating capacity in Ireland, France and Italy, and expect to achieve a full exit and complete the delivery of attractive net cash returns to investors during 2018.
Fund flows and distribution
Impax has now reported six consecutive quarters of strong inflows. During the Period we saw further significant commitments from Continental European investors, particularly across the BNP Paribas fund range. These white label products are based on our Leaders, Specialists, Water, and Food & Agriculture strategies. For example, over the past two years, BNP Paribas has raised ca. EUR450 million for funds based on our Food & Agriculture strategy, while the net assets of the BNP Paribas Aqua fund, which we have sub-managed since inception in 2009, have recently exceeded EUR2 billion.
We also continue to see strong growth from our North American distribution partners; for example, on 1 May 2017, we commenced the mandate of a new US$100 million segregated account based on our Leaders strategy.
The table below sets out the AUM movements during the Period.
AUM movement for six months to 31 March 2017
Hot Features
Premium
Listed Private Property Total GBPm
equity equity funds GBPm
funds GBPm funds GBPm
--------------------------------- ------------ ------------ ------------ -----------
Total AUM at 30 September 2016 4,195 285 22 4,502
--------------------------------- ------------ ------------ ------------ -----------
Net flows 778 92 - 870
--------------------------------- ------------ ------------ ------------ -----------
Market movement and performance 341 (2) - 339
--------------------------------- ------------ ------------ ------------ -----------
Total AUM at 31 March 2017 5,314 375 22 5,711
--------------------------------- ------------ ------------ ------------ -----------
Infrastructure and staff
The building we have occupied in London since 2011 is scheduled for redevelopment. We are anticipating a move before the end of 2017 and are currently evaluating nearby cost-effective options with increased floor space and improved IT infrastructure.
In November, we relocated our New York City office to larger premises in Greenwich, Connecticut, to accommodate the expanding team.
Over the Period, our permanent staff was stable at 71 (2016: 70). Our core team is well established and over the medium-term we expect to continue to scale up our business significantly with only a limited number of additional hires.
Remuneration and share management
In line with previous announcements, the Board intends to recommend that the Group's Employee Benefit Trust ("EBT") continues to buy back the Company's shares from time to time after giving due consideration to alternative uses of the Company's cash resources. Shares purchased may be used to satisfy obligations to employees for share-based awards, thus reducing the requirement to issue new shares. During the Period the Group's Employee Benefit Trust ("EBT") bought 1.5 million shares in the market, at an average price of 65 pence, bringing total shares purchased to date to 18.7 million. In comparison, 20.8 million options and restricted shares have been issued to date.
Shareholder communications
We are committed to open communication with all our stakeholders; we also recognise the importance of expanding our shareholder register and improving liquidity in the Company's shares. Last October we appointed a specialist investor outreach company to help us extend our investor relations programme, with particular focus on retail investors who may be looking to invest in smaller, fast-growing companies. We now have several new shareholders on the register and have seen a greater number of smaller trades over the Period, compared to historical averages.
Outlook
In recent years, Impax's strategies have proved to be remarkably resilient and we believe that companies across environmental markets will maintain the trend of delivering
above-average earnings growth. The rapid acceleration of innovation in the markets in which Impax invests presents a multitude of investment opportunities, underpinned by powerful long-term drivers.
We continue to analyse the potential impact of Brexit on our ability to market and manage funds in Europe, and the possible need to establish additional presence in the EU. We believe that our culture, structure, and the diversity of our business model should enable us to make good progress in an increasingly complex regulatory and political environment.
In our conversations with asset owners around the asset owners around the world, we see growing interest from investors searching for superior long-term returns, while shorter-term catalysts are also increasingly driving positive investor sentiment. The Board views Impax's prospects with optimism and is confident in the Company's ability to deliver long-term shareholder value.
Ian Simm
10 May 2017
(1) As at 30 April 2017
(2) Revenue less operating costs
Impax Asset Management
Group plc
Condensed consolidated statement of income
For the six months ended
31 March 2017
Six months Six months Year
ended ended ended
31 March 31 March 30 September
2017 2016 2016
Note GBP000 GBP000 GBP000
-------------------------------------- ----- ----------- ----------- -------------
Revenue 13,948 9,434 21,067
Operating costs (10,774) (7,871) (16,915)
(Charges)/credits related
to legacy long-term incentive
schemes 3 (242) 86 27
Fair value (losses)/gains
and other financial income/(expense) 4 (538) 357 989
Investment income 213 101 319
Change in third party
interests in consolidated
funds 5 (163) (48) (288)
-------------------------------------- ----- ----------- ----------- -------------
Profit before taxation 2,444 2,059 5,199
Taxation 6 77 (508) (1,022)
-------------------------------------- ----- ----------- ----------- -------------
Profit after taxation 2,521 1,551 4,177
-------------------------------------- ----- ----------- ----------- -------------
2.15
Basic earnings per share 7 p 1.35 p 3.62 p
-------------------------------------- ----- ----------- ----------- -------------
Diluted earnings per 2.11
share 7 p 1.35 p 3.62 p
-------------------------------------- ----- ----------- ----------- -------------
Condensed consolidated statement
of comprehensive income
For the six months ended
31 March 2017
Six months Six months
ended ended Year ended
31 March 31 March 30 September
2017 2016 2016
GBP000 GBP000 GBP000
Profit for the period 2,521 1,551 4,177
Change in value of cash
flow hedges 115 (132) (193)
Tax on change in value of
cash flow hedges (22) 26 38
Tax credit on long-term 348 - -
incentive schemes
Exchange differences
on translation of foreign
operations 58 13 87
-------------------------------------- ----- ----------- ----------- -------------
Total other comprehensive
income 499 (93) (68)
Total comprehensive income
for the period attributable
to equity holders of the
parent 3,020 1,458 4,109
--------------------------------------------- ----------- ----------- -------------
Impax Asset Management Group plc
Condensed Consolidated Statement of Financial
Position
As at 31 March 2017
Note As at As at As at
31 March 31 March 30 September
2017 2016 2016
GBP000 GBP000 GBP000
ASSETS
Non-current assets
Goodwill 9 1,681 1,681 1,681
Intangible assets 31 55 61
Property, plant and
equipment 115 145 108
Investments 13 16 14
1,840 1,897 1,864
---------------------------------- ----- --------- --------- -------------
Current assets
Trade and other receivables 7,148 5,314 6,931
Derivative asset 98 - -
Investments 10 15,550 10,837 12,811
Margin account 395 254 378
Cash invested in money
market funds and long
term deposit accounts 11 10,623 10,424 12,891
Cash and cash equivalents 11 2,664 2,820 2,804
36,478 29,649 35,815
---------------------------------- ----- --------- --------- -------------
TOTAL ASSETS 38,318 31,546 37,679
----------------------------------- ----- --------- --------- -------------
EQUITY AND LIABILITIES
Equity
Ordinary shares 1,277 1,277 1,277
Share premium 4,093 4,093 4,093
Exchange translation
reserve (96) (228) (154)
Hedging reserve (23) (67) (116)
Retained earnings 23,114 19,463 21,645
TOTAL EQUITY 28,365 24,538 26,745
----------------------------------- ----- --------- --------- -------------
Current liabilities
Trade and other payables 4,202 3,079 5,473
Third party interests in consolidated
funds 4,321 697 2,125
Derivative liability 28 105 265
Current tax liability 977 482 2,135
9,528 4,363 9,998
---------------------------------- ----- --------- --------- -------------
Non-current liabilities
Accruals 264 155 180
Deferred tax liability 161 2,490 756
---------------------------------- ----- --------- --------- -------------
Total non-current liabilities 425 2,645 936
TOTAL LIABILITIES 9,953 7,008 10,934
----------------------------------- ----- --------- --------- -------------
TOTAL EQUITY AND LIABILITIES 38,318 31,546 37,679
----------------------------------- ----- --------- --------- -------------
Impax Asset Management Group plc
Condensed Consolidated Statement of
Changes in Equity
For the six months ended
31 March 2017
Share Share Exchange Hedging Retained Total
capital premium translation reserve earnings
reserve
As at 1 October 2015 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
1,277 4,093 (241) 39 20,759 25,927
Transactions with
owners
Dividends paid - - - - (1,905) ( 1,905)
Acquisition of own
shares - - - - (1,188) ( 1,188)
Award of shares on
option exercises - - - - 3 3
Long-term incentive
scheme charge - - - - 243 243
---------------------- -------- -------- ------------ -------- --------- ---------
- - - - ( 2,847) ( 2,847)
Profit for the period - - - - 1,551 1,551
Other comprehensive
income
Cash flow hedge - - - ( 132) - ( 132)
Tax on cash flow
hedge - - - 26 - 26
Exchange differences
on translation of
foreign operations - - 13 - - 13
---------------------- -------- -------- ------------ -------- --------- ---------
- - 13 ( 106) - ( 93)
---------------------- -------- -------- ------------ -------- --------- ---------
As at 31 March 2016 1,277 4,093 ( 228) ( 67) 19,463 24,538
Transactions with
owners
Dividends paid - - - - ( 557) ( 557)
Acquisition of own
shares - - - - (359) ( 359)
Award of shares on
option exercises - - - - 163 163
Long-term incentive
scheme charge - - - - 309 309
---------------------- -------- -------- ------------ -------- --------- ---------
- - - - ( 444) ( 444)
Profit for the period - - - - 2,626 2,626
Other comprehensive -
income
Cash flow hedge - - - ( 61) - ( 61)
Tax on cash flow
hedge - - - 12 - 12
Exchange differences
on translation of
foreign operations - - 74 - - 74
---------------------- -------- -------- ------------ -------- --------- ---------
- - 74 ( 49) - 25
---------------------- -------- -------- ------------ -------- --------- ---------
As at 30 September
2016 1,277 4,093 ( 154) ( 116) 21,645 26,745
Transactions with
owners
Dividends paid - - - - (1,856) ( 1,856)
Acquisition of own
shares - - - - (948) ( 948)
Award of shares on
option exercises - - - - 1,041 1,041
Long-term incentive
scheme charge - - - - 363 363
---------------------- -------- -------- ------------ -------- --------- ---------
- - - - ( 1,400) ( 1,400)
Profit for the period - - - - 2,521 2,521
Other comprehensive
income
Cash flow hedge - - - 115 - 115
Tax on cash flow
hedge - - - (22) - ( 22)
Tax credit on
long-term
incentive schemes - - - - 348 348
Exchange differences
on translation of
foreign operations - - 58 - - 58
---------------------- -------- -------- ------------ -------- --------- ---------
- - 58 93 348 499
-------- -------- ------------ -------- --------- ---------
As at 31 March 2017 1,277 4,093 ( 96) ( 23) 23,114 28,365
---------------------- -------- -------- ------------ -------- --------- ---------
Impax Asset Management Group plc
Condensed Consolidated Statement
of Cash Flows
For the six months ended 31
March 2017
Six Six Year ended
months months
ended ended
31 March 31 March 30 September
2017 2016 2016
Note GBP000 GBP000 GBP000
------------------------------------ ----- --------- --------- -------------
Cashflows from operating activities
Profit before taxation 2,444 2,059 5,199
Adjustments for:
Investment income (213) (101) (319)
Depreciation and amortisation 80 110 198
Fair value losses/(gains) 317 (357) (1,180)
Share-based payment charges 363 243 512
Charges/(credits) related to legacy
long-term incentive schemes 242 (86) (27)
Change in third party interests
in consolidated funds 163 48 288
------------------------------------------- --------- --------- -------------
Operating cash flows before movement
in working capital 3,396 1,916 4,671
(Increase) in receivables (217) (357) (2,139)
(Increase)/decrease in margin
account (17) (78) (203)
(Decrease)/Increase in payables (1,372) (1,863) 802
------------------------------------ ----- --------- --------- -------------
Cash generated from operations 1,790 (382) 3,131
Corporation tax paid (1,351) (243) (815)
------------------------------------ ----- --------- --------- -------------
Net cash (used by)/generated from
operating activities 439 (625) 2,316
Investing activities:
Investment income received 213 101 329
Settlement of investment related
hedges (1,274) (714) (1,990)
Net redemptions made to Impax by
unconsolidated investment funds - 1,089 2,329
Net investments made by
consolidated
funds (2,002) (3,487) (4,549)
Decrease/(increase) in cash held
by money market funds and long-term
deposit accounts 2,268 6,729 4,262
Acquisition of property plant and
equipment and intangible assets (57) (52) (109)
------------------------------------------- --------- --------- -------------
Net cash used by investment
activities (852) 3,666 272
Financing activities:
Dividends paid 8 (1,856) (1,905) (2,462)
Acquisition of own shares (948) (1,188) (1,547)
Cash received on exercise of Impax
share options 1,041 3 166
Investments by third parties into
consolidated funds 2,034 505 1,693
------------------------------------------- --------- --------- -------------
Net cash (generated from)/(used
by) financing activities 271 (2,585) (2,150)
Net (decrease)/increase in cash
and cash equivalents (142) 456 438
Cash and cash equivalents at the
beginning of the period 2,804 2,364 2,364
Effect of foreign exchange
rate changes 2 - 2
------------------------------------ ----- --------- --------- -------------
Cash and cash equivalents at
the end of the period 11 2,664 2,820 2,804
------------------------------------ ----- --------- --------- -------------
Impax Asset Management Group plc
Notes to the Condensed Consolidated Interim Financial
Statements
For the Six Months Ended
31 March 2017
1 Basis of preparation
This interim report is unaudited and does not constitute
statutory accounts within the meaning of Section
435 of the Companies Act 2006. These condensed consolidated
interim financial statements have been prepared
in accordance with IAS 34 "Interim Financial Reporting"
as adopted by the EU and the AIM rules. They do
not include all of the information required for
full annual financial statements, and should be
read in conjunction with the consolidated financial
statements of the Group for the year ended 30 September
2016.
The comparative figures for the financial year ended
30 September 2016 are not the Company's statutory
accounts for that financial year. Those accounts,
prepared in accordance with IFRSs as adopted by
the EU, have been reported on by the Company's auditors
and delivered to Companies House. The report of
the auditors was (i) unqualified, (ii) did not include
a reference to matters to which the auditors drew
attention by way of emphasis without qualifying
their report, and (iii) did not contain a statement
under Section 498 (2) or (3) of the Companies Act
2006. Copies of these accounts are available upon
request from the Company's registered office at
Norfolk House, 31 St James's Square, London, SW1Y
4JR or at the Company's website: www.impaxam.com.
The Group has considerable financial resources and
a broad range of products. As a consequence the
Directors believe the Group is well placed to manage
its business risks in the context of the current
economic outlook. The Directors therefore have a
reasonable expectation that the Group has adequate
resources to continue in operational existence for
the foreseeable future and have continued to adopt
the going concern basis in preparing these interim
financial statements.
The accounting policies applied by the Group in
these condensed consolidated interim financial statements
are the same as those applied by the Group in its
consolidated financial statements for the year ended
30 September 2016.
2 Estimates
The preparation of interim financial statements
requires management to make judgements, estimates
and assumptions that affect the application of accounting
policies and the reported amounts of assets and
liabilities, income and expense. Actual results
may differ from these estimates.
In preparing these condensed consolidated interim
financial statements, the significant judgements
made by management in applying the Group's accounting
policies and the key sources of estimation uncertainty
were: i) judgements and estimates made in the valuation
of unlisted current asset investments (see note
10); ii) determining whether managed funds should
be consolidated; iii) determining the size of the
charge for National Insurance Contributions payable
on long-term incentive schemes and iv) determining
the value of deferred tax assets.
3 Charges/(credits) related to legacy long-term incentive
schemes
Six months Six months Year ended
ended ended 30 September
31 March 31 March 2016
2017 2016
GBP000 GBP000 GBP000
LTIP NIC
charge/(credit) 159 (44) 3
LTIP Additional
payments
charge/(credit) 83 (42) (55)
Advisory fees for EBT
settlement - - 25
242 (86) (27)
------------- ------------- --------------
(NIC = Employer's
National
Insurance Charge)
Long term incentive plan
("LTIP") NIC Charge
The Group made awards of options over the Group's
shares under the LTIP plan in 2011. These awards
vested in 2012 but 2,969,500 remain outstanding
at 31 March 2017. The Group pays Employers NIC when
individuals exercise their options and accordingly
accrues for the estimated amount that would be payable
on exercise using the year end share price. The
amount accrued therefore varies from period to period
in line with the Group's share price with any adjustment
recorded through the income statement.
LTIP Additional
payments
Individuals receiving LTIP options are eligible
for a retention payment payable after the end of
the financial year in which each employee exercises
his or her LTIP Options. The payment will be equal
to the corporation tax benefit realised by the Group
on the exercise of the LTIP options minus the amount
of the NIC suffered by the Group on the exercise
of the LTIP options. The amount payable will fluctuate
in line with the Impax share price, such fluctuations
are recorded in the current period income statement.
4 Fair value gains/(losses)
Fair value gains/(losses) include those arising
on revaluation of listed and unlisted investments
held by the Group including those held by the Group's
consolidated funds (see note 10) and any gains or
losses arising on related hedge instruments held
by the Group.
5 Change in third party interest in
consolidated funds
This charge removes the fair value gains or losses,
other operating costs and investment income recorded
in the Group's consolidated funds (see note 10)
which are attributable to third party investors
in the funds.
6 Taxation
The tax rate for the period is lower than the standard
rate of corporation tax in the UK for the period
(19.5 per cent). The differences are explained below:
Six months Six months
ended ended Year ended
31 March 31 March 30 September
2017 2016 2016
GBP000 GBP000 GBP000
Profit before tax 2,444 2,059 5,199
Tax charge at 19.5 per
cent,
20 per cent, 20 per cent 477 412 1,040
Effects of:
Non-deductible expenses
and
charges 2 9 24
Decrease/(increases) in
value
of deductions re share
awards
from share price
decreases/increases (663) 133 -
Adjustment in respect of
prior
years 41 - (59)
Change in UK tax rates - (66) (42)
Effect of higher tax
rates
in foreign jurisdictions 66 20 59
Total income tax expense (77) 508 1,022
-------------------------- ------------- ------------- --------------
7 Earnings per share
Earnings Shares Earnings
for the per share
period
GBP'000 '000
Six months ended 31
March 2017
Basic 2,380 110,904 2.15p
-------------------------- ------------- ------------- --------------
Diluted 2,380 113,048 2.11p
-------------------------- ------------- ------------- --------------
Six months ended 31 March
2016
Basic 1,517 112,603 1.35p
-------------------------- ------------- ------------- --------------
Diluted 1,551 114,266 1.35p
-------------------------- ------------- ------------- --------------
Year ended 30 September
2016
--------------
Basic 4,043 111,794 3.62p
-------------------------- ------------- ------------- --------------
Diluted 4,177 114,399 3.62p
-------------------------- ------------- ------------- --------------
Earnings are reduced by GBP141,000 for the six months
ending 31 March 2017 (31 March 2016, GBP34,000)
for basic earnings per shares to reflect the profit
attributable to holders of restricted shares, which
are treated as contingently returnable shares. This
adjustment is not normally made for diluted earnings
per shares but instead the dilutive restricted shares
are included in the number of shares used for the
dilutive calculation. However, where the resulting
calculation for diluted earnings per share is lower
than the basic earnings per share the basic number
is used.
The weighted average number of shares is calculated
as shown in the table below.
Six months Six months
ended ended Year ended
31 March 31 March 30 September
2017 2016 2016
'000 '000 '000
Issued share capital 127,749 127,749 127,749
Less own shares held (16,845) (15,146) (15,955)
-------------------------- ------------- ------------- --------------
Weighted average number
of
ordinary shares used in
the
calculation of basic EPS 110,904 112,603 111,794
-------------------------- ------------- ------------- --------------
Additional dilutive
shares
re share options 10,630 7,690 10,690
Adjustment to reflect
option
exercise proceeds and
future
service from employees
receiving
awards (8,486) (6,027) (8,085)
--------------------------
Weighted average number
of
ordinary shares used in
the
calculation of diluted
earnings
per share 113,048 114,266 114,399
-------------------------- ------------- ------------- --------------
The basic earnings per share for all periods shown
includes vested LTIP options on the basis that these
have an inconsequential exercise price (1 pence
or 0 pence). There were 7,440,000 restricted shares
in issue at 31 March 2017 which would have increased
dilutive shares by 3,662,000.
8 Dividends
On 8 March 2017, at the Company's Annual General
Meeting, payment of a 1.6 pence per share final
dividend 30 September 2016 (2015: 1.2p per share)
was approved. Combined with an interim payment of
0.5 pence this gave total dividends for the year
ended 30 September 2016 of 2.1 pence. The Trustee
of the Impax Employee Benefit Trusts waived the
Trusts' rights to part of this dividend, leading
to a total dividend payment of GBP1,855,916. This
was paid on 17 March 2017.
The Board has declared an interim dividend for the
period of 0.7 pence per ordinary share (2016: 0.5
pence). This dividend will be paid on 23 June to
ordinary shareholders on the register at close of
business on 26 May 2017.
9 Goodwill
Cost GBP'000
At 1 October 2015, 31 March 2016, 30 September
2016 and 31 March 2017 1,681
--------------------------------------------------------------- --------------
Goodwill arose on the acquisition of Impax Capital
Limited on 18 June 2001 and on the acquisition of
a property fund business from Climate Change Capital
in July 2014. Adjustments were made to the goodwill
in respect of the acquisition of the property fund
business in 2015.
The Group tests goodwill for impairment annually
or more frequently if there are indications that
goodwill may be impaired.
10 Current asset
investments
Unlisted Listed Total
investments investments
GBP000 GBP000 GBP000
At 1 October 2015 3,329 4,090 7,419
Additions 91 5,164 5,255
Fair value movements 174 845 1,019
Repayments/disposals (1,180) (1,676) (2,856)
At 31 March 2016 2,414 8,423 10,837
----------------------- ------ ------------- ------------- --------------
Additions 25 2,052 2,077
Fair value movements 392 1,759 2,151
Repayments/disposals (1,263) (991) (2,254)
At 30 September
2016 1,568 11,243 12,811
----------------------- ------ ------------- ------------- --------------
Additions - 3,457 3,457
Fair value movements 6 731 737
Repayments/disposals - (1,455) (1,455)
At 31 March 2017 1,574 13,976 15,550
----------------------- ------ ------------- ------------- --------------
Listed investments
Impax Food and
Agriculture
Fund ("IFAF")
On 1 December 2012 the Group launched the IFAF and
invested, from its own resources GBP2 million into
the fund. The IFAF invests in listed equities using
the Group's Food and Agriculture Strategy. The Group's
investment represented more than 50 per cent of
the IFAF's NAV from the date of launch to 31 March
2017 and has been consolidated throughout this period
with its underlying investments included in listed
investments in the table above.
Impax Global Equity Opportunities
Fund ("IGEO")
On 23 January 2015 the Group launched the IGEO Fund
and invested, from its own resources GBP2 million
into the fund. IGEO invests in listed equities using
the Group's Global Equities Strategy. The Group's
investment represented more than 50 per cent of
IGEO's NAV from the date of launch to 31 March 2017
and has been consolidated throughout this period
with its underlying investments included in listed
investments in the table above.
Impax Environmental
Leaders
Fund ("IEL")
On 12 January 2016 the Group launched the IEL Fund
and invested, from its own resources GBP3 million
into the fund. IEL invests in listed equities using
the Group's Leaders Strategy. The Group's investment
represented more than 50 per cent of IEL's NAV from
the date of launch to 31 March 2017 and has been
consolidated throughout this period with its underlying
investments included in listed investments in the
table above.
The investments held by the funds described above
are revalued to market value using quoted market
prices that are available at the date of these financial
statements. The quoted market price is the current
bid price.
Unlisted investments
The Group has a 3.76 per cent partnership share
of Impax New Energy Investors LP, a private equity
partnership managed by the Group. At the period
end the carrying value of the investment was GBP562,000.
The carrying value represents the Board's assessment
of the investment's fair value which was determined
using a discounted cashflow approach. 100% of the
partnership's valuation is represented by investments
in Spanish solar parks. These investments have been
adversely impacted by the significant retroactive
reforms of the Spanish energy markets and covenants
for loans held by the investment have been breached.
The assets are currently the subject of a sales
process. At the same time negotiations with the
relevant banks to restructure the loans are ongoing
and a claim for compensation from the Spanish government
is currently being considered by the European Court
of Arbitration. In the event that the sales process
is unsuccessful and the banks take possession of
the assets and the claims for compensation are unsuccessful
the investment would be written down in full.
The Group has a 1.14 per cent partnership share
in Impax New Energy Investors II LP, a private equity
partnership managed by the Group. To date the Group
has invested a total of EUR2,195,000 into the partnership
and received distributions of EUR2,868,000 following
sales of investments by the partnership. The investment
is included at the Board's assessment of its fair
value, being GBP541,000 at 31 March 2017, which
is determined by valuing the underlying investments.
The principal valuation techniques used are discounted
cashflow, price of recent investment and market
bids. The Group has a commitment to invest up to
a further EUR1,103,000 into this partnership.
The Group has a 3.03 per cent partnership share
in Impax New Energy Investors III LP, a private
equity partnership managed by the Group. The Group
has made no investments in this partnership to date.
The Group has a commitment to invest up to EUR4
million into this partnership.
11 Cash and cash
equivalents
In order to mitigate bank default risk and to access
favourable interest rates the Group invests part
of its surplus cash in money market funds and long-term
deposit accounts. Amounts held in money market funds
and long-term deposit accounts are as shown below.
The Group considers the total of its cash and cash
equivalents held by operating entities of the Group
and cash invested in money market funds and in long-term
deposit accounts to be its cash reserves.
31 March 31 March 30 September
2017 2016 2016
GBP000 GBP000 GBP000
---------------------- ------------- ------------- --------------
Cash and cash equivalents 2,664 2,820 2,804
Cash held in money market
funds and long-term
deposit
accounts 10,623 10,424 12,891
Less cash and cash
equivalents
held by consolidated
funds (307) (204) (292)
-------------------------- ------------- ------------- --------------
Total cash reserves 12,980 13,040 15,403
----------------------- ------ ------------- ------------- --------------
Share capital and Own
12 shares
31 March 31 March 30 September
2017 2016 2016
Issued and fully paid ordinary shares
of 1 pence each
Number 127,749,098 127,749,098 127,749,098
GBP000s 1,277 1,277 1,277
-------------------------- ------------- ------------- --------------
31 March 31 March 30 September
2017 2016 2016
---------------------- ------------- ------------- --------------
Own shares
Number 19,144,332 21,023,120 21,387,839
GBP000s 6,631 7,387 7,131
-------------------------- ------------- ------------- --------------
Own shares represent a portion of those held in
the EBT 2012 and EBT 2004. 1,466,493 shares were
acquired in the six months ended 31 March 2017,
(period ended 31 March 2016: 2,883,500). 3,710,000
shares were awarded to option holders on exercise
of options (period ended 31 March 2016: 153,000).
As at 31 March 2017 the Company had a total of 13,599,500
options outstanding of which 9,345,500 were exercisable.
As at 31 March 2017 employees also held 7,440,000
Restricted shares over which the restrictions lapse
starting from January 2018 through to December 2021.
These shares are held in trust in the EBT 2012 and
are included in own shares above.
Related party
13 transactions
Impax New Energy Investors LP, Impax New Energy
Investors II and II-B LP, Impax New Energy Investors
III and III-B LP, INEI III Co-Investment LP and
Impax New Energy Investors SCA, Impax Global Resource
Optimization Fund LP, Impax Carried Interest Partners
LP, Impax Carried Interest Partners II LP, Impax
Climate Property Fund LP and entities controlled
by them are related parties of the Group by virtue
of subsidiaries being the General Partners to these
funds. BNP Paribas Investment Partners is a related
party of the Group by virtue of owning a 24.99 per
cent equity holding in the Group. Other funds managed
by subsidiaries of the Company are also related
parties by virtue of their management contracts.
The aggregate related party transactions during
the period, and holdings or balances as at the period
end, are as shown below. All balances were unsecured.
Unless stated otherwise balances outstanding were
GBPnil.
Six months Six months
ended ended Year ended
31 March 31 March 30 September
2017 2016 2016
GBP000 GBP000 GBP000
Statement of
comprehensive
income
Revenue 13,785 9,378 21,034
31 March 31 March 30 September
2017 2016 2016
GBP000 GBP000 GBP000
--------------
Statement of financial
position
Non-current asset
investments 13 16 14
Current asset
investments 1,574 2,005 1,114
Trade and other
receivables 6,545 4,595 6,893
14 Group risks
The Group's principal risks remain as detailed within
the Directors' report of the Group's 2016 Annual
Report and Accounts and are categorised as financial,
investment and operational.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LLFSTERIILID
(END) Dow Jones Newswires
May 11, 2017 02:01 ET (06:01 GMT)
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