Impax Asset Management has growing green appeal

Impressive demand for its funds trigger higher earnings expectations
Thursday 18 May 2017 Author: David Stevenson

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.

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