Impax Asset Management Group (IPX) H1 2025 earnings summary

Executive summary

• Investment performance improved in 2025, with 71% of AUM outperforming benchmarks since January.

• Significant AUM decline to £25.3bn as of 31 March 2025, reflecting net outflows and market volatility.

• Cost control measures included a 10% headcount reduction, saving £11m annually, and maintaining strong cash reserves.

• Closed the SKY Harbor acquisition post-period, expanding fixed income capabilities and adding £1.1bn AUM.

• Continued diversification in products and client channels, with new fund launches and acquisitions.

Financial highlights

• Revenue for H1 2025 was £76.5m, down from £86.2m in H1 2024, due to lower AUM.

• Adjusted operating profit was £20.5m (H1 2024: £25.8m); adjusted operating margin declined to 26.8%.

• Adjusted diluted EPS was 12.6p (H1 2024: 16.0p); IFRS profit before tax was £18.6m.

• Interim dividend set at 4.0p per share, with a rebalanced payout policy.

• Cash reserves at period end were £60.3m, with a capital surplus of £45.0m.

Outlook and guidance

• Management remains optimistic on future flows, with new account launches expected in H2 2025.

• Annualized revenue run rate for H2 2025 expected at £126m, rising to £130m with the Sky Harbor acquisition.

• Cost base run rate reduced to £98.5m, expected to rise to £100m post-acquisition.

• Dividend payout expected to be close to the 55% threshold of adjusted profit after tax.

• Focus remains on business diversification and operational efficiency.