Impax Asset Managementwww.impaxam.com TICKER: IPX EXCHANGE: AIM
Impax is a market leading and multi award winning manager of both listed and private equity funds, which invest in ways that take advantage of more environmentally sustainable corporate and economic growth globally.
Impax is a market leading manager of both listed and private equity funds, which invest in ways that take advantage of more environmentally sustainable corporate and economic growth globally.
Impressive first half earnings were 23% up on the second half of FY’16 (100% ahead of H1’16). That reflects six consecutive quarters of strong growth in assets under management and advisory (AUM). Total net inflow was a record £870m in the first half, equivalent to a 27% increase in AUM to £5.7bn by end March, while another very good month pushed that above £6.0bn by end April. The interim figure included $1bn for North America, an important medium term milestone.
We have upgraded both our FY17, and FY18 AUM forecasts, as Impax has already hit our previous target with five months remaining. Furthermore, the outlook remains positive since the robust performance by all group investment strategies underpin its profile as a leading global investor in environmental markets. It continues to attract attention from institutional investors in the UK, Continental Europe and the US.
The drivers which helped AUM double over the last two years remain intact. The financial model is cash generative, benefits from a declining cost ratio/improving operating margin. That will finance seed investment in new funds, possibly acquisitions, but also increases in dividends and the pay-out ratio, which we regard as relatively conservative, despite the latest, 40% increase in the interim distribution.
Impax’s team culture means no dependence on ‘star’ fund managers (whose departure might result in loss of assets) and its core investment focus is in strong demand from investors. Yet its stock-market value is just 2.2% of AUM that are themselves growing rapidly.
Foreign buyers gorging on UK stocks
Document can be downloaded here: UK plc ‘going for a song’
Being a shareholder in a company that receives a juicy takeover offer is a marvellous feeling. Something that many fortunate investors have experienced over the past 3 years. Thanks to a spate of M&A bids by deep pocketed overseas buyers – partly triggered by the June 2016 Brexit result, which sent the £ tumbling and adversely affected the FTSE.
Consequently today, given this trend is unlikely to end anytime soon, we’ve highlighted 30 possible acquisition ideas in the attached research paper. Spilt equally between large and smallcap stocks – covering a broad selection of industries.
What’s more we believe most of these businesses are underpinned by strong fundamentals and substantial upside in the event of predatory interest.
According to Factset Mergerstat/BVR, the average bid premium paid for such deals between 2004-14 was 30% – with the figure trending upwards since the global financial crisis.
Happy investing. Published 27th August 2019