Impax Asset Management Group (IPX) H1 2026 earnings summary

Executive summary

• Assets under management (AUM) declined to £22.3bn as of 31 March 2026, down from £25.3bn in H1 2025 and £26.1bn at the start of the financial year, mainly due to net outflows and market impacts.

• 70% of AUM outperformed benchmarks since January 2026, reflecting improved investment performance after a challenging period for thematic strategies.

• Net outflows of £3.6bn were primarily driven by institutional redemptions, though outflows from intermediary clients slowed.

• Management remains focused on product diversification, operational efficiency, and building strategic client partnerships, with optimism for medium- to long-term growth.

• Cost-reduction initiatives include headcount reduction and fund rationalization, aiming to preserve capabilities while improving margins.

Financial highlights

• Revenue for H1 2026 was £58.8m, down from £76.5m in H1 2025 and £65.4m in H2 2025, reflecting reduced AUM and net outflows.

• Adjusted operating profit was £11.3m (H1 2025: £20.5m; H2 2025: £13.1m), with an adjusted operating margin of 19.2%.

• IFRS profit before tax was £8.2m (H1 2025: £18.6m; H2 2025: £9.2m); adjusted diluted EPS was 7.4p (H1 2025: 12.6p).

• Costs reduced to £47.5m, over £8m lower year-over-year, driven by headcount reductions and efficiency programs.

• Cash reserves at period end were £46.0m, compared to £64.7m in H1 2025.

Outlook and guidance

• Management remains confident in long-term growth prospects, citing improved investment performance and increased client interest post-Middle East conflict.

• Revenue for the full year is expected between £109m and £113m, with operating fee margin projected at 47-48 basis points.

• Focus for H2 2026 is on slowing net outflows, sustaining investment performance, and deepening client relationships.

• Further cost savings anticipated in H2 as additional headcount reductions are implemented.

• Ongoing emphasis on cost management and talent retention.