Impax Asset Management Group (IPX) H2 2025 earnings summary

Executive summary

• Faced challenging market conditions for active managers, with significant outflows in the first half stabilizing and improving in the second half.

• Focused on scaling listed equities, fixed income, and private equity, leveraging the transition to a sustainable economy as a long-term opportunity.

• Completed the acquisition of SKY Harbor, strengthening fixed income capabilities and diversifying revenue streams.

• Cost base reduced without impacting capabilities or growth plans, maintaining a strong balance sheet and updating dividend policy.

• Maintained a GBP 10 million share buyback, with 89% completed by year-end, and a sustainable dividend payout.

Financial highlights

• Adjusted operating profit of GBP 33.6 million and EPS of 21.3p, both down by just over a third year-over-year.

• Revenue for the year was GBP 141.9 million, down from GBP 170.1 million, reflecting outflows and the loss of the St. James's Place mandate.

• Operating margin finished at 23.7%, with a target to return to 30% in the medium term.

• Dividend per share reset to 12p, representing a 55.7% payout ratio and a 6.9% yield.

• GBP 64.7 million in cash on the balance sheet, with no debt.

Outlook and guidance

• Cautious revenue guidance, expecting stability with potential for growth as fixed income and new products scale.

• Optimism for a market rebound in 2026, with expectations of broader equity market performance and reduced dominance by mega-cap AI stocks.

• Specialist positioning and diversified business model expected to drive future growth.

• Focus remains on client partnerships, efficiency, and business diversification.