Given previous updates, the challenge of H1 is no surprise. AUM fell 32% to £25.3bn, with half of the fall due to two cancelled (low margin) St James’s Place (SJP) mandates. Revenue fell 11% y-o-y to £76.5m, adjusted operating profit 21% to £20.5m, and investors can expect a fall in full-year dividend (page 12). But Impax is hardly the disaster implied by its share price, which is down 31% over six months and 68% over 12 - a forward PE of just 8.5 for a business with £65m of net cash and no debt. Indeed, a £10m share buyback is announced. Even after the AUM fall, this is a robust business with a huge opportunity, and we see a strong medium-term scope for recovery in fundamentals. We make only small adjustments to our forecasts (page 13) and our DCF valuation remains 400p / share, more than twice the share price.
Impax Asset Management: Equity Development
May 22, 2025Disclaimer & Declaration of Interest
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