Given the sharp pullback in financial markets, which saw growth stocks and ‘sustainable’ stocks in particular suffer heavy falls, and also given widespread fund outflows, Impax’s financial FY results are highly impressive.
While end-of-FY22 AUM (£35.7bn) closed 4.1% down y-o-y (30 Sep 21: £37.2bn), average AUM, the primary driver of revenue, increased around 28% from £29.6bn to £37.9bn. In turn, revenue increased 23% from £143m to £175m, adjusted operating profit 20% (£56m to £67m), and cash reserves 53% (£70m to £107m).
Basic EPS increased 46% from 31.5p to 46.0p (boosted by a £6m forex gain), adjusted diluted EPS rose 22% from 34.4p to 42.1p, and the full year dividend 34% from 20.6p to 27.6p (a yield of 3.6%).
Impax itself has been a standout performer. Amongst a London-listed active manager peer group it’s 4.1% fall in AUM compared to a median fall of 22%, and it recorded the highest net inflow rate of +8% compared to a peer-group median of -5%.
Our fundamental value is now 1,000p per share, raised from 960p on strong financial results and a recent fall in the 10-year gilt yield (the risk-free rate used in our DCF valuation).
