Impax Asset Management has growing green appeal
Environmentally focused Impax Asset Management’s (IPX:AIM) first half results to 31 March show £830m of inflows into its funds.
Chief executive Ian Simm says the environmental markets in which the firm invests should benefit from the US’s shale and oil industry as there is greater need for clean water, recycling and waste management.
Not only has the firm enjoyed a 27% growth in assets in six months, it has also doubled its profit in the same period.
House broker Peel Hunt says Impax is enjoying strong momentum as investor demand is robust for the group’s products. Impax’s total assets under management now stand at £6bn, slightly exceeding the broker’s earlier forecast of £5.9bn by September 2017.
Peel Hunt has upgraded its forecasts for the third time this year, now expecting earnings per share of 4.8p. This puts the firm’s price to earnings ratio at a heady 21-times, suggesting the market has confidence that Impax can deliver.
Peel Hunt says the half year results are a clear indication that Impax is going through a step change in scale, with profit and assets moving materially higher. We share the bullish view.
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell Youinvest.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.