Impax AUM down 19 pct, cautiously optimistic on H2

05/13/2009 HedgeWorld


* Cites weak equity markets

* H1 profit before tax falls to 1.3 mln stg

* Aims to maintain annual dividend of 0.35p/shr

* Sees expansion opportunities in Asia


(Adds CEO's, COO's comments, updates share movement)

By Shivani Singh

BANGALORE, May 13 (Reuters) - Environmental investment manager Impax Group Plc said assets under management declined 19 percent in the first half of its financial year due to weak equity markets but it is cautiously optimistic about the second half.

"We are pleased with the last six months and cautiously optimistic about the next period and very optimistic about the medium to long term," Chief Executive Ian Simm told Reuters in an interview.

Impax invests in sectors such as renewable energy, water treatment and waste management that may benefit from government environmental initiatives globally.

The company said assets under management fell to 889 million pounds ($1.35 billion) as of March 31 from 1.10 billion pounds on Sept. 30, but had recovered to 986 million pounds by April 30.

Net outflows were about 48 million pounds in the period, characterised by "a small percentage of reductions in investments (by clients) rather than clients walking away completely," Chief Operating Officer Charlie Ridge told Reuters.

Impax posted a first-half profit before tax of 1.3 million pounds, hurt by an increase in operating costs. It reported a profit of 1.6 million pounds before tax a year ago.

Revenue rose 11 percent to 5.5 million pounds, including exceptional non-recurring fees of 945,620 pounds, for the six months ended March 31.

Impax, which paid a 0.35 pence maiden annual dividend for the year to last September, plans to maintain the dividend at the same levels as last year, CEO Simm said.

The company did not propose an interim dividend as it plans to have a single annual dividend subject to market conditions.


EXPANSION PLANS

Impax, which has 32 employees, plans to add another 10 to 15 people in London over the next couple of years, CEO Simm said.

The company expects to grow organically and is not actively looking at acquisitions as a strategy for growth.

Its funds, including Impax Environmental Markets Plc , have the capacity to double the amount of money they manage, Simm said.

Impax, which has operations in London and Hong Kong, associates in Europe and partners in the United States and Japan, expects to expand activities in Asia over the next 12 months.

The company is in discussions regarding research and distribution opportunities including selling funds to Indian nationals, institutions and non-resident Indians with a financial institution in India, Simm said.

At 1230 GMT, shares of Impax were up 5 percent at 25 pence on the London Stock Exchange. The shares have gained about 19 percent in the past six months.

($1=.6582 Pound) (Editing by Mike Miller)

((shivani.singh@thomsonreuters.com; +91 80 4135 5800; Reuters Messaging: shivani.singh.thomsonreuters.com@reuters.net)) Keywords: IMPAX/