TIDMIPX
RNS Number : 1426S
Impax Group PLC
13 May 2009
?
Impax Group plc
("Impax" or the "Company")
Interim results for the six months ended 31 March 2009
Impax, the AIM quoted investment manager which focuses exclusively on the
environmental sector, today announced its interim results for the six month
period ended 31 March 2009.
Highlights:
* Robust financial performance in spite of difficult market conditions.
Turnover, which included GBP945,620 of exceptional, non-recurring fees,
increased to GBP5,452,373 (from GBP4,922,608 in the corresponding period last
year).
* Net profit before tax of GBP1,315,580 (from GBP1,592,343 in the corresponding
period last year). The reduction reflects the impact of extra costs associated
with extending Impax's platform to support future growth.
* Assets under management and advisory ("AUM") declined from a value of GBP1,098
million on 30 September 2008 to GBP889 million on 31 March 2009 due to weak
equity markets, but recovered to GBP986 million by 30 April 2009.
* Over five years, Impax Environmental Markets plc ("IEM"), the largest "pure
play" fund that Impax manages has outperformed its benchmark, returning 29% in
the period, while the MSCI World Total Return Index has returned 11%.
Commenting on the results, Keith Falconer, Chairman of Impax Group plc said:
"The prospects for the sectors in which we invest have strengthened considerably
in recent months. When inflows resume into equity funds, it is highly likely
that there will be increased allocations to the environmental sector and that
Impax, as the UK's leading specialist environmental investment manager with a
strong team and long term track record, will benefit accordingly."
"I am pleased to report that, by focusing on investment performance, maintaining
frequent communication with investors and keeping tight control of costs, our
business has remained robust and is well positioned for further expansion."
Copies of the interim results for the six months ended 31 March 2009 will be
sent to shareholders shortly. Copies will also be available on the Company's
website www.impax.co.uk and may be collected from the Company's registered
office; Mezzanine Floor, Pegasus House, 37-43 Sackville Street London W1S 3EH.
About Impax Group plc:
Impax Group plc ("Impax"), which is quoted on the Alternative Investment Market
of the London Stock Exchange, was founded in 1994 as a specialist finance house
focusing on the markets for cleaner or more efficient delivery of basic services
of energy, water and waste.
Impax's dedicated team of professionals, with many years of experience in the
financial and environmental sectors, is ideally placed to understand and take
advantage of the investment opportunities arising from the fast growing
environmental markets. Impax Asset Management (the trading entity of Impax
Group) manages assets for institutional and private investors, across a range of
listed and private equity funds.
www.impax.co.uk
For further information please contact:
+--------------------------------------+--------------------------------------+
| Keith Falconer, Chairman | 07747 066637 |
| Impax Group plc | |
| | |
+--------------------------------------+--------------------------------------+
| Ian Simm, Chief Executive | 020 7432 2619 |
| Impax Group plc | |
| | |
+--------------------------------------+--------------------------------------+
| John Riddell, Director | 020 7763 2200 |
| Noble & Company Limited | |
+--------------------------------------+--------------------------------------+
CHAIRMAN'S STATEMENT
The six months that represent the company's interim period, 1 October 2008 to 31
March 2009 will long be remembered as calamitous for financial markets, the
economy and society as a whole. Many specialist fund management companies have
struggled to retain clients and sustain profitability, and there have been many
casualties. Against this background, I am pleased to report that, by focusing on
investment performance, maintaining frequent communication with investors and
keeping tight control of costs, our business has remained robust and is well
positioned for further expansion. Assets under management and advisory ("AUM")
declined from GBP1,098 million on 30 September 2008 to GBP889 million on 31
March 2009. By 30 April 2009, AUM had recovered to reach GBP986 million.
In spite of, indeed in some cases because of, the financial crisis and economic
downturn, the prospects for the sectors in which we invest have strengthened
considerably in recent months. Many governments have explicitly earmarked a
percentage of their broader stimulus packages for increased expenditure on
environmental goods and services. In parallel, rising concern over environmental
indicators such as drought in the United States or melting ice in the polar
regions is provoking further environmental policy debate and suggests that the
trend towards tougher environmental standards is set to continue. In particular,
the new US administration contains many high level appointees who have a deep
understanding of both the science of global warming and the policy options to
reduce emissions of greenhouse gases.
Results for the period
Turnover for the six months to 31 March 2009 was GBP5,452,373 (2008:
GBP4,922,608). Turnover included GBP945,620 of exceptional non-recurring fees
due under the management contract of our private equity fund. The unaudited net
result for the period was a profit before tax of GBP1,315,580 (2008:
GBP1,592,343); the reduction reflects the impact of costs associated with
extending our platform to support future growth.
I am pleased to confirm that, at the Annual General Meeting on 2 February 2009,
the company's shareholders approved payment of a maiden dividend of 0.35 pence
per share. It is the intention of the Board to implement a progressive dividend
policy as the Company's balance sheet continues to strengthen and cash flows
improve. However, at this point the Board intends to proceed with a single
annual dividend, which will be paid subject to market conditions.
Quoted Equities
In recent statements, I have referred consistently to the superior earnings
growth rates in the environmental sector and to our firm belief that carefully
selected environmental markets stocks should out-perform global equities over
the long term. During the period under review, as growth rates in virtually all
sectors of the economy have slowed sharply, the net asset values of our funds
investing in quoted securities have fallen along with global equity markets.
However, over a longer time frame, for example the five year period that is
typically of interest to institutional investors, these funds have maintained
their significant out-performance.
As of 31 March 2009, we were managing or advising GBP655 million in funds or
accounts investing in "pure play" stocks, i.e. those companies that derive at
least 50% of their revenues or profits or have at least 50% of their capital
employed in environmental markets, and GBP96 million in funds or accounts
investing in "all cap" stocks, i.e. those companies where the corresponding
cut-off is "at least 20%". Over five years to 31 March 2009, Impax Environmental
Markets plc, the largest "pure play" fund that we manage, has returned 29% while
the MSCI World Total Return Index (in Sterling) has returned 11%.Looking ahead,
we are encouraged by the number of companies that are actively building their
environmental sector divisions. We expect that stocks of these companies will
out-perform global equity markets over the medium to long term.
Of key importance for the company, investor confidence in these funds has been
sustained; during the period under review, net outflows were approximately
GBP48m. In the context of a severe flight of capital from global equity funds, I
believe that this is a significant achievement.
Our partnership with FTSE continues to make encouraging progress. Following the
establishment of two global environmental indices in the first half of 2008,
FTSE launched nine sub-sector indices in December 2008 and expects to launch a
number of regional indices during the summer of 2009. All of these indices
comprise companies derived from a database managed by Impax, and we are already
seeing a higher level of brand recognition for the company as a result.
Private Equity
Our investment activity in private companies, notably the management of the
Impax New Energy Investors fund, continues to show great promise. For several
years, investors providing equity capital for wind and solar farms in many
European countries have enjoyed long-term, government-backed power contracts and
low technology risk. By leveraging relationships with developers, equipment
suppliers and banks, our investment team has been able to purchase assets at
very attractive prices.
It is also noteworthy that our chosen investment universe and strategy are well
positioned to thrive in difficult economic circumstances. The project assets
that underpin a majority of our investments are typically fully funded at the
time that we invest, and usually have revenue streams that are independent of
both the oil price and of the health of the wider economy. Furthermore, we
expect that the most attractive exits from our investments will be achieved
through trade sales, which are typically less impacted than initial public
offerings by weak economic circumstances.
Last month, the European Council gave final approval to the Renewable Energy
Directive, which sets a requirement that, by 2020, 20% of energy, equivalent to
approximately 34% of electricity is derived from renewable energy sources. EU
Member States must adopt by June 2010 policy designed to achieve these targets.
With this framework in place, we expect the flow of attractive deals to
increase, and we are making good progress in expanding our business activity in
this area.
Hedge Fund
Our long-short equity fund is now approaching its second anniversary and
continues to deliver returns that have a low correlation with equity markets.
With clear signs that many institutional investors worldwide are increasing
their allocations to well managed, transparent hedge funds, we continue to
pursue opportunities to expand the capital base of this product.
Support Systems
Our investment in support systems has given us a firm foundation for robust
operations, compliance and risk management during the recent market fall and
volatility. Following our recent move to new premises in Sackville Street,
London, we have made additional investments in information technology and
reporting systems, and have made further hires into our back office team. As our
client base continues to expand, I expect that these enhanced capabilities will
support both new mandate wins as well as the retention of existing clients.
Fund Distribution
As one of the few environmental sector investment managers with an extensive
track record in multiple products, we are excited by the prospects for wider
distribution of our funds and the packaging of portfolios for new groups of
clients. Our relationships with third party distributors, such as BNP Paribas
Investment Partners, remain central to our approach in many countries, and we
were particularly pleased to have been recently appointed as investment
sub-manager to new funds in Australia and France launched by BNP Paribas.
We are also seeing a significant opportunity for increasing our direct sales
activity and are planning, as a first step, to increase our in-house team
covering this area.
Prospects
At the time of writing, a degree of confidence has returned to equity markets,
although individual stocks remain volatile and volumes thin. As investors follow
through on plans to review their asset allocation, it may take some time before
there are significant flows into equity funds. Nevertheless, when inflows
resume, it is highly likely that there will be increased allocations to the
environmental sector and that Impax, as a specialist investment manager with a
stable team and long term track record, will benefit accordingly.
Our investment teams have demonstrated their calibre by the way they have
performed in the recent past. This has not been an easy period for anyone in the
investment industry. However, with a strong balance sheet, we have been able to
plan judiciously for further sustainable growth and I hope that, in December,
when I report on the full year's out-turn, we will have made further significant
progress in expanding our business.
+--------+--------+--------+--------+-------------+--------+-------------+--------+-----------+
| Impax Group plc |
+---------------------------------------------------------------------------------------------+
| Consolidated Income Statement for the six months ended 31 March 2009 |
+---------------------------------------------------------------------------------------------+
| | | | | | | | | |
+--------+--------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | | Six | | Six | | Year |
| | | | | months | | months | | ended |
| | | | | ended | | ended | | |
+--------+--------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | | 31 Mar | | 31 Mar | | 30 |
| | | | | 09 | | 08 | | Sept |
| | | | | | | | | 08 |
+--------+--------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | | (unaudited) | | (unaudited) | | (audited) |
+--------+--------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | | GBP'000 | | GBP'000 | | GBP'000 |
+--------+--------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | | | |
+--------+--------+--------+--------+-------------+--------+-------------+--------+-----------+
| Turnover | 4 | | 5,452 | | 4,923 | | 11,389 |
+-----------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | | | |
+--------+--------+--------+--------+-------------+--------+-------------+--------+-----------+
| Operating | | | | | | | |
| expenses | | | | | | | |
+-----------------+--------+--------+-------------+--------+-------------+--------+-----------+
| Long term | | | (170) | | (491) | | (427) |
| incentive | | | | | | | |
| scheme charge | | | | | | | |
+-----------------+--------+--------+-------------+--------+-------------+--------+-----------+
| Revaluation of | | | (26) | | - | | (39) |
| investments | | | | | | | |
+-----------------+--------+--------+-------------+--------+-------------+--------+-----------+
| Other operating | | | (4,050) | | (2,975) | | (7,348) |
| expenses | | | | | | | |
+-----------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | | (4,246) | | (3,466) | | (7,814) |
+--------+--------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | | | |
+--------+--------+--------+--------+-------------+--------+-------------+--------+-----------+
| Operating | | | | | | | |
| profit | | | | | | | |
+-----------------+--------+--------+-------------+--------+-------------+--------+-----------+
| Continuing | | | 1,206 | | 1,457 | | 3,575 |
| operations | | | | | | | |
+-----------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | | | |
+--------+--------+--------+--------+-------------+--------+-------------+--------+-----------+
| Net interest | | | 110 | | 135 | | 282 |
| receivable | | | | | | | |
+-----------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | | | |
+--------+--------+--------+--------+-------------+--------+-------------+--------+-----------+
| Profit on | | | 1,316 | | 1,592 | | 3,857 |
| ordinary | | | | | | | |
| activities | | | | | | | |
| before taxation | | | | | | | |
+-----------------+--------+--------+-------------+--------+-------------+--------+-----------+
| Taxation | | | (352) | | (550) | | (1,069) |
+-----------------+--------+--------+-------------+--------+-------------+--------+-----------+
| Profit | | | 964 | | 1,042 | | 2,788 |
| attributable to | | | | | | | |
| the Group | | | | | | | |
+-----------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | | | |
+--------+--------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | | | |
+--------+--------+--------+--------+-------------+--------+-------------+--------+-----------+
| Basic earnings | 5 | | 0.89 p | | 0.95 p | | 2.54 p |
| per share | | | | | | | |
+-----------------+--------+--------+-------------+--------+-------------+--------+-----------+
| Adjusted | 5 | | 1.05 p | | 1.40 p | | 2.93 p |
| earnings per | | | | | | | |
| share | | | | | | | |
+--------+--------+--------+--------+-------------+--------+-------------+--------+-----------+
+--------+--------+--------+--------+-------------+--------+-------------+--------+-----------+
| Statement of Total Recognised Gains and Losses for the six months ended 31 |
| March 2009 |
+---------------------------------------------------------------------------------------------+
| | | | | | | | | |
+--------+--------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | | | |
+--------+--------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | | Six | | Six | | Year |
| | | | | months | | months | | ended |
| | | | | ended | | ended | | |
+--------+--------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | | 31 Mar | | 31 Mar | | 30 |
| | | | | 09 | | 08 | | Sept |
| | | | | | | | | 08 |
+--------+--------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | | (unaudited) | | (unaudited) | | (audited) |
+--------+--------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | | GBP'000 | | GBP'000 | | GBP'000 |
+--------+--------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | | | |
+--------+--------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | | | |
+--------+--------+--------+--------+-------------+--------+-------------+--------+-----------+
| Profit for the | | | 964 | | 1,042 | | 2,788 |
| period | | | | | | | |
+-----------------+--------+--------+-------------+--------+-------------+--------+-----------+
| Currency | | 6 | 328 | | 31 | | ( 141) |
| translation | | | | | | | |
| differences | | | | | | | |
+-----------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | | |
+-----------------+--------+--------+-------------+--------+-------------+--------+-----------+
| Total | | | 1,292 | | 1,073 | | 2,647 |
| recognised | | | | | | | |
| profits | | | | | | | |
+--------+--------+--------+--------+-------------+--------+-------------+--------+-----------+
+--------+-------------+--------+--------+-------------+--------+-------------+--------+-----------+
| Impax Group plc |
+--------------------------------------------------------------------------------------------------+
| Consolidated Balance Sheet as at 31 March 2009 |
+--------------------------------------------------------------------------------------------------+
| | | | | | | | | |
+--------+-------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | | | |
+--------+-------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | | As at | | As at | | As at |
+--------+-------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | | 31 Mar | | 31 Mar | | 30 |
| | | | | 09 | | 08 | | Sept |
| | | | | | | | | 08 |
+--------+-------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | | (unaudited) | | (unaudited) | | (audited) |
+--------+-------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | Notes | GBP'000 | | GBP'000 | | GBP'000 |
+--------+-------------+--------+--------+-------------+--------+-------------+--------+-----------+
| ASSETS | | | | | | | |
+----------------------+--------+--------+-------------+--------+-------------+--------+-----------+
| Non - current | | | | | | | |
| assets | | | | | | | |
+----------------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | Goodwill | | | 1,629 | | 1,629 | | 1,629 |
+--------+-------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | Other | | | 148 | | 29 | | 73 |
| | intangible | | | | | | | |
| | assets | | | | | | | |
+--------+-------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | Property, | | | 460 | | 48 | | 537 |
| | plant and | | | | | | | |
| | equipment | | | | | | | |
+--------+-------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | Other | | | 1,178 | | 1,058 | | 1,046 |
| | financial | | | | | | | |
| | assets | | | | | | | |
+--------+-------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | Investments | | 7 | 2,982 | | 14 | | 14 |
+--------+-------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | | | |
+--------+-------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | | 6,397 | | 2,778 | | 3,299 |
+--------+-------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | | |
+----------------------+--------+--------+-------------+--------+-------------+--------+-----------+
| Current assets | | | | | | | |
+----------------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | Trade and other | | 65 | | 65 | | 65 |
| | receivables due | | | | | | |
| | after one year | | | | | | |
+--------+----------------------+--------+-------------+--------+-------------+--------+-----------+
| | Trade and other | | 2,586 | | 2,015 | | 2,097 |
| | receivables due | | | | | | |
| | within one year | | | | | | |
+--------+----------------------+--------+-------------+--------+-------------+--------+-----------+
| | Other | | | 380 | | 180 | | 247 |
| | financial | | | | | | | |
| | assets | | | | | | | |
+--------+-------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | Investments | | | 11 | | 3,082 | | 3,005 |
+--------+-------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | Cash | | | 5,564 | | 4,320 | | 7,029 |
| | and | | | | | | | |
| | cash | | | | | | | |
| | equivalents | | | | | | | |
+--------+-------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | | 8,606 | | 9,662 | | 12,443 |
+--------+-------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | | | |
+--------+-------------+--------+--------+-------------+--------+-------------+--------+-----------+
| TOTAL ASSETS | | | 15,003 | | 12,440 | | 15,742 |
+----------------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | | | |
+--------+-------------+--------+--------+-------------+--------+-------------+--------+-----------+
| EQUITY AND | | | | | | | |
| LIABILITIES | | | | | | | |
+----------------------+--------+--------+-------------+--------+-------------+--------+-----------+
| Capital and | | | | | | | |
| Reserves | | | | | | | |
| attributable to | | | | | | | |
| equity | | | | | | | |
| shareholders | | | | | | | |
+----------------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | Ordinary | | 8 | 1,156 | | 1,095 | | 1,156 |
| | shares | | | | | | | |
+--------+-------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | Share | | 8 | 240 | | 179 | | 240 |
| | premium | | | | | | | |
+--------+-------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | Exchange | 8 | (533) | | (971) | | (861) |
| | equalisation | | | | | | |
| | reserve | | | | | | |
+--------+----------------------+--------+-------------+--------+-------------+--------+-----------+
| | Treasury | | 8 | (222) | | (164) | | (222) |
| | shares | | | | | | | |
+--------+-------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | Other | | 8 | 1,422 | | 1,408 | | 1,252 |
| | reserve | | | | | | | |
+--------+-------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | Retained | | 8 | 10,584 | | 8,251 | | 9,997 |
| | earnings | | | | | | | |
+--------+-------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | | | |
+--------+-------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | 12,647 | | 9,798 | | 11,562 |
+-------------------------------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | | | |
+--------+-------------+--------+--------+-------------+--------+-------------+--------+-----------+
| Current | | | | | | | |
| liabilities | | | | | | | |
+----------------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | Trade | | | 2,356 | | 2,642 | | 4,180 |
| | and | | | | | | | |
| | other | | | | | | | |
| | payables | | | | | | | |
+--------+-------------+--------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | | | |
+--------+-------------+--------+--------+-------------+--------+-------------+--------+-----------+
| TOTAL EQUITY AND | | 15,003 | | 12,440 | | 15,742 |
| LIABILITIES | | | | | | |
+-------------------------------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | | | |
+--------+-------------+--------+--------+-------------+--------+-------------+--------+-----------+
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| Impax Group plc |
+----------------------------------------------------------------------------------------+
| Consolidated Cash Flow Statement for the six months ended 31 |
| March 2009 |
+----------------------------------------------------------------------------------------+
| | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| | | Six | | Six | | Year |
| | | months | | months | | ended |
| | | ended | | ended | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| | | 31 Mar | | 31 Mar | | 30 |
| | | 09 | | 08 | | Sept |
| | | | | | | 08 |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| | | (unaudited) | | (unaudited) | | (audited) |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| | | GBP'000 | | GBP'000 | | GBP'000 |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| Cashflows | | | | | | |
| from | | | | | | |
| operating | | | | | | |
| activities | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| Operating | | 1,206 | | 1,457 | | 3,575 |
| profit | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| Adjustments | | | | | | |
| for: | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| Depreciation | | 18 | | 14 | | 46 |
| of property, | | | | | | |
| plant and | | | | | | |
| equipment | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| Amortisation | | 91 | | 6 | | 21 |
| of | | | | | | |
| intangible | | | | | | |
| assets | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| Gain/loss | | 26 | | - | | 39 |
| on | | | | | | |
| revaluations | | | | | | |
| on | | | | | | |
| investments | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| Profit | | - | | - | | ( 47) |
| on | | | | | | |
| sale | | | | | | |
| of | | | | | | |
| investments | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| Expense | | | | | | |
| recognised | | | | | | |
| in respect | | | | | | |
| of equity | | | | | | |
| settled | | | | | | |
| share-based | | | | | | |
| payments | | | | | | |
+ +--------+-------------+--------+-------------+--------+-----------+
| | | 170 | | 517 | | 632 |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| Net | | 328 | | 31 | | 141 |
| foreign | | | | | | |
| exchange | | | | | | |
| gain | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| Operating | | 1,839 | | 2,025 | | 4,407 |
| cash | | | | | | |
| flows | | | | | | |
| before | | | | | | |
| movement | | | | | | |
| in | | | | | | |
| working | | | | | | |
| capital | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| Increase | | ( 857) | | ( 103) | | ( 397) |
| in | | | | | | |
| receivables | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| (Decrease)/increase | | ( 1,799) | | ( 815) | | 1,161 |
| in payables | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| | | ( 817) | | 1,107 | | 5,171 |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| Corporation | | ( 274) | | - | | ( 957) |
| tax paid | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| Net | | ( 1,091) | | 1,107 | | 4,214 |
| cash | | | | | | |
| (used | | | | | | |
| in)/generated | | | | | | |
| by operating | | | | | | |
| activities | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| Cashflows | | | | | | |
| from | | | | | | |
| investment | | | | | | |
| activities | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| Interest | | 110 | | 135 | | 282 |
| received | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| Share-based | | - | | - | | ( 109) |
| transactions | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| Proceeds | | - | | 38 | | 1,622 |
| on sale | | | | | | |
| of | | | | | | |
| investments | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| Purchase | | - | | ( 1,500) | | ( 3,000) |
| of | | | | | | |
| investments | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| Purchase | | ( 92) | | - | | ( 60) |
| of | | | | | | |
| licences | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| Purchase | | ( 15) | | ( 14) | | ( 535) |
| of | | | | | | |
| property, | | | | | | |
| plant and | | | | | | |
| equipment | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| Net | | 3 | | ( 1,341) | | ( 1,800) |
| cash | | | | | | |
| generated | | | | | | |
| by/(used | | | | | | |
| in) | | | | | | |
| investing | | | | | | |
| activities | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| Cashflows | | | | | | |
| from | | | | | | |
| Financing | | | | | | |
| activities | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| Dividends | 3 | ( 377) | | - | | - |
| paid | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| Share | | - | | - | | 61 |
| capital | | | | | | |
| issued | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| Net | | ( 377) | | - | | 61 |
| cash | | | | | | |
| (used | | | | | | |
| in)/generated | | | | | | |
| by financing | | | | | | |
| activities | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| Net | | ( 1,465) | | ( 234) | | 2,475 |
| (decrease)/increase | | | | | | |
| in cash and cash | | | | | | |
| equivalents | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| Cash | | 7,029 | | 4,554 | | 4,554 |
| and | | | | | | |
| cash | | | | | | |
| equivalents | | | | | | |
| at the | | | | | | |
| beginning | | | | | | |
| of the | | | | | | |
| period | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| Cash | | 5,564 | | 4,320 | | 7,029 |
| and | | | | | | |
| cash | | | | | | |
| equivalents | | | | | | |
| at the end | | | | | | |
| of the | | | | | | |
| period | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| Represented | | | | | | |
| by: | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| Cash | | 5,564 | | 4,320 | | 7,029 |
| and | | | | | | |
| cash | | | | | | |
| equivalents | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| | | | | | | |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
| | | 5,564 | | 4,320 | | 7,029 |
+---------------------+--------+-------------+--------+-------------+--------+-----------+
+--------+--------+--------+--------+--------+--------+--------------------------------+
| Impax | | | | | |
| Group | | | | | |
| plc | | | | | |
+--------+--------+--------+--------+--------+--------+
| Notes to the Interim Accounts for the six months ended 31 March 2009 |
+--------+--------+--------+--------+--------+--------+--------------------------------+
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| 1 | The financial information set out in this report does not constitute full accounts for the purposes of | | |
| | Section 240 of the Companies Act 1985. The interim accounts for the six months ended 31 March 2009 and 31 | | |
| | March 2008 are unaudited. The comparative figures for the financial year ended 30 September 2008 are not | | |
| | the Company's statutory accounts for the financial year but are abridged from those accounts which have | | |
| | been reported on by the Company's auditors, whose report on the consolidated financial statements prepared | | |
| | under International Financial Reporting and Accounting Standards, was unqualified. The interim accounts | | |
| | have been prepared on the basis of the accounting policies set out in the annual financial statements of | | |
| | the Group for the year ended 30 September 2008. | | |
+----------+----------------------------------------------------------------------------------------------------------------------+----------+-----------+
| | | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | The interim accounts were approved by the Directors on 12 May 2009. | | |
+----------+----------------------------------------------------------------------------------------------------------------------+----------+-----------+
| | | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| 2 | Amounts denominated in US Dollars have been converted at the closing rate on 31 March 2009 of GBP1 to $1.42 | | |
| | (31 March 2008: $2.00; 30 September 2008: $1.82). The results of the US subsidiary undertaking have been | | |
| | translated on a monthly basis at the average rate ruling during each month. | | |
+----------+----------------------------------------------------------------------------------------------------------------------+----------+-----------+
| | | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| 3 | On 2 February 2009 at the Group's Annual General Meeting, the Board approved payment of the Group's maiden | | |
| | dividend, being 0.35p per share in respect of the year ended 30 September 2008. The trustees of the | | |
| | Employee Benefit Trust waived their rights to part of this dividend, leading to a total dividend payment of | | |
| | GBP377,297. This was paid on 20 February 2009. | | |
+----------+----------------------------------------------------------------------------------------------------------------------+----------+-----------+
| | | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | In line with the Company's policy of paying a single annual dividend, the Directors do not propose an | | |
| | interim payment for the six month period ended 31 March 2009. | | |
+----------+----------------------------------------------------------------------------------------------------------------------+----------+-----------+
| | | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| 4 | Turnover includes an exceptional management fee relating to the Impax New Energy Fund, billed in the | | |
| | current financial period in accordance with the Limited Partnership Agreement. | | |
+----------+----------------------------------------------------------------------------------------------------------------------+----------+-----------+
| | | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| 5 | The figures for basic earnings per share are based on the profit attributable to the Group of GBP964,452 | | |
| | (31 March 2008: GBP1,042,344; 30 September 2008: GBP2,788,399) and on the weighted average number of | | |
| | ordinary shares in issue during the period ended 31 March 2009 of 107,801,123 (31 March 2008: 109,499,098; | | |
| | 30 September 2008: 109,615,764). | | |
+----------+----------------------------------------------------------------------------------------------------------------------+----------+-----------+
| | | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | An adjusted earnings per share has been calculated in order to show results from operating activities on a | | |
| | comparable basis. This excludes the long term incentive scheme charge of GBP170,362 from the results (six | | |
| | months ended 31 March 2008: GBP491,358; year ended 30 September 2008: GBP427,333). | | |
+----------+----------------------------------------------------------------------------------------------------------------------+----------+-----------+
| | | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| 6 | The currency translation differences represent the foreign exchange gains that arose from retranslating the | | |
| | assets and liabilities of the Group's foreign subsidiary undertakings into sterling. | | |
+----------+----------------------------------------------------------------------------------------------------------------------+----------+-----------+
| | | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| 7 | The Group holds two significant investments in funds which are managed by a subsidiary undertaking of Impax | | |
| | Group plc. These investments were revalued to market value. The nature of these investments is described | | |
| | below: | | |
+----------+----------------------------------------------------------------------------------------------------------------------+----------+-----------+
| | | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | On 21 May 2007, the Company made an investment of EUR2,200,000 in the Impax Absolute Return Fund ("IARF"). | | |
| | The investment took the form of a subscription of 22,000 Euro Class A shares in the IARF, at EUR100 per | | |
| | share. The IARF launched on 21 May 2007 and had a total net asset value ("NAV") of GBP4,259,199 at 31 March | | |
| | 2009. The carrying value of the Group's investment in the IARF at that date was GBP1,818,437 which | | |
| | represents 42.7% of the NAV. The Directors are of the opinion that this investment does not constitute an | | |
| | associate undertaking due to insignificant control and influence. | | |
+----------+----------------------------------------------------------------------------------------------------------------------+----------+-----------+
| | | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | On 3 March 2008, the Company made an investment of GBP1,500,000 in the Impax Environmental Leaders Fund | | |
| | ("IEL"). The investment took the form of 1,500,000 GBP1 accumulation shares. IEL, which is managed by a | | |
| | subsidiary undertaking of the Company, launched on 3 March 2008 and had a total net asset value ("NAV") of | | |
| | GBP3,116,414 at 31 March 2009. The carrying value of the Group's investment in the IEL at that date was | | |
| | GBP1,149,300 which represents 36.9% of the NAV. The Directors are of the opinion that this investment does | | |
| | not constitute an associate undertaking due to insignificant control and influence. | | |
+----------+----------------------------------------------------------------------------------------------------------------------+----------+-----------+
| | | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| 8 | Reconciliation of movements in capital and reserves: 1 October 2007 - 31 March 2008 | | | | |
+----------+------------------------------------------------------------------------------------------------+----------+----------+----------+-----------+
| | | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | | Share | | Share | | Exchange | | Treasury | | Other | | Retained |
| | | capital | | premium | | equalisation | | shares | | reserve | | earnings |
| | | | | | | reserve | | | | | | |
+----------+---------------+ +----------+ +----------+ +----------+ +----------+ +----------+ +
| | | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | | GBP'000 | | GBP'000 | | GBP'000 | | GBP'000 | | GBP'000 | | GBP'000 |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | As at 1 | 1,095 | | 19 | | ( 1,002) | | ( 168) | | 894 | | 7,209 |
| | October | | | | | | | | | | | |
| | 2007 | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | Profit | - | | - | | - | | - | | - | | 1,042 |
| | for the | | | | | | | | | | | |
| | period | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | Exchange | - | | - | | 31 | | - | | - | | - |
| | differences | | | | | | | | | | | |
| | on | | | | | | | | | | | |
| | consolidation | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | Share-based | - | | - | | - | | - | | 492 | | - |
| | payment | | | | | | | | | | | |
| | charge | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | Net sale | - | | 160 | | - | | 4 | | ( 3) | | - |
| | of | | | | | | | | | | | |
| | shares | | | | | | | | | | | |
| | to | | | | | | | | | | | |
| | Employee | | | | | | | | | | | |
| | Benefit | | | | | | | | | | | |
| | Trust | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | Accrued | - | | - | | - | | - | | 25 | | - |
| | cash | | | | | | | | | | | |
| | equivalent | | | | | | | | | | | |
| | of share | | | | | | | | | | | |
| | options | | | | | | | | | | | |
| | receivable | | | | | | | | | | | |
| | by NOMAD | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | | | | | | | | | | | | |
+ +---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | As at 31 | 1,095 | | 179 | | ( 971) | | ( 164) | | 1,408 | | 8,251 |
| | March | | | | | | | | | | | |
| | 2008 | | | | | | | | | | | |
+ +---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| 8.1 | Reconciliation of movements in capital and reserves: 1 April 2008 - 30 September 2008 | | | | |
| | | | | | |
+----------+------------------------------------------------------------------------------------------------+----------+----------+----------+-----------+
| | | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | | Share | | Share | | Exchange | | Treasury | | Other | | Retained |
| | | capital | | premium | | equalisation | | shares | | reserve | | earnings |
| | | | | | | reserve | | | | | | |
+----------+---------------+ +----------+ +----------+ +----------+ +----------+ +----------+ +
| | | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | | GBP'000 | | GBP'000 | | GBP'000 | | GBP'000 | | GBP'000 | | GBP'000 |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | As at 1 | 1,095 | | 179 | | ( 971) | | ( 164) | | 1,408 | | 8,251 |
| | April | | | | | | | | | | | |
| | 2008 | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | Profit | - | | - | | - | | | | - | | 1,746 |
| | for the | | | | | | | | | | | |
| | period | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | Exchange | - | | - | | 110 | | - | | - | | - |
| | differences | | | | | | | | | | | |
| | on | | | | | | | | | | | |
| | consolidation | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | Share-based | 61 | | 58 | | - | | ( 58) | | ( 64) | | |
| | payment | | | | | | | | | | | |
| | charge | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | Net sale | - | | 3 | | - | | - | | - | | |
| | of | | | | | | | | | | | |
| | shares | | | | | | | | | | | |
| | to | | | | | | | | | | | |
| | Employee | | | | | | | | | | | |
| | Benefit | | | | | | | | | | | |
| | Trust | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | Accrued | - | | - | | - | | - | | 8 | | - |
| | cash | | | | | | | | | | | |
| | equivalent | | | | | | | | | | | |
| | of share | | | | | | | | | | | |
| | options | | | | | | | | | | | |
| | receivable | | | | | | | | | | | |
| | by NOMAD | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | Accrued | - | | - | | - | | - | | ( 100) | | - |
| | cash | | | | | | | | | | | |
| | equivalent | | | | | | | | | | | |
| | of share | | | | | | | | | | | |
| | options | | | | | | | | | | | |
| | cancelled | | | | | | | | | | | |
| | by NOMAD | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | As at 30 | 1,156 | | 240 | | ( 861) | | ( 222) | | 1,252 | | 9,997 |
| | September | | | | | | | | | | | |
| | 2008 | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| 8.2 | Reconciliation of movements in capital and reserves: 1 October 2008 - 31 March 2009 | | | | |
+----------+------------------------------------------------------------------------------------------------+----------+----------+----------+-----------+
| | | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | | Share | | Share | | Exchange | | Treasury | | Other | | Retained |
| | | capital | | premium | | equalisation | | shares | | reserve | | earnings |
| | | | | | | reserve | | | | | | |
+----------+---------------+ +----------+ +----------+ +----------+ +----------+ +----------+ +
| | | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | | GBP'000 | | GBP'000 | | GBP'000 | | GBP'000 | | GBP'000 | | GBP'000 |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | As at 1 | 1,156 | | 240 | | ( 861) | | ( 222) | | 1,252 | | 9,997 |
| | October | | | | | | | | | | | |
| | 2008 | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | Profit | - | | - | | - | | - | | - | | 964 |
| | for the | | | | | | | | | | | |
| | period | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | Exchange | - | | - | | 328 | | - | | - | | - |
| | differences | | | | | | | | | | | |
| | on | | | | | | | | | | | |
| | consolidation | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | Share-based | - | | - | | - | | - | | 170 | | - |
| | payment | | | | | | | | | | | |
| | charge | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | Dividend | - | | - | | - | | - | | - | | ( 377) |
| | paid | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | As at 31 | 1,156 | | 240 | | ( 533) | | ( 222) | | 1,422 | | 10,584 |
| | March | | | | | | | | | | | |
| | 2009 | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | Treasury | | | | | | | | | | | |
| | Shares | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | The treasury shares relate to the holding of 22,207,054 Ordinary Shares in the Company by the EBT, | | |
| | representing 19.2% of the ordinary shares in issue at 31 March 2009. The market value of this shareholding | | |
| | at 31 March 2009 was GBP4,219,340 (31 March 2008: GBP5,551,730; 30 September 2008: GBP6,606,569). | | |
+----------+----------------------------------------------------------------------------------------------------------------------+----------+-----------+
| | | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | Other | | | | | | | | | | | |
| | reserve | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | Net issue of shares | | | | | | | | | | |
| | to EBT | | | | | | | | | | |
+----------+--------------------------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | The results for the six months ended 31 March 2009 include a long-term incentive scheme charge of | | |
| | GBP170,361 which comprises GBP20,155 in respect of the EBT scheme approved by shareholders on 4 February | | |
| | 2005 and GBP150,206 in respect of the extended proposals to the EBT scheme approved by shareholders on 31 | | |
| | January 2008. This is explained further below. | | |
+----------+----------------------------------------------------------------------------------------------------------------------+----------+-----------+
| | | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | On 4 February 2005 shareholders approved the establishment by the Company of the Impax Group Employee | | |
| | Benefit Trust (the "EBT") as part of the Company's employee incentive arrangements. This provided for the | | |
| | issue of up to 18,250,000 shares to the EBT for the three years ended 30 September 2007. The allocation of | | |
| | Ordinary Shares to employees and their families via the EBT by the Company in the three years ended 30 | | |
| | September 2007 as part of the long term incentive scheme has given rise to a charge of GBP20,156 to the | | |
| | income statement for the six months ended 31 March 2009. This forms part of a total charge of GBP1,069,539, | | |
| | being: | | |
+----------+----------------------------------------------------------------------------------------------------------------------+----------+-----------+
| | - GBP463,464 evenly spread over the three years to 30 September 2007, which is the performance | | |
| | period for the 2005 share award | | |
+----------+----------------------------------------------------------------------------------------------------------------------+----------+-----------+
| | - GBP485,143 evenly spread over the three years to 30 September 2008, which is the performance | | |
| | period for the 2006 share award | | |
+----------+----------------------------------------------------------------------------------------------------------------------+----------+-----------+
| | - GBP120,932 evenly spread over the three years to 30 September 2009, which is the performance | | |
| | period for the 2007 share award | | |
+----------+----------------------------------------------------------------------------------------------------------------------+----------+-----------+
| | | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | On 31 January 2008 shareholders approved the Company's proposals to extend the EBT as part of the Company's | | |
| | employee incentive arrangements. This provided for the issue of up to a further 18,250,000 shares to the | | |
| | EBT for the three years ended 30 September 2010. The allocation of Ordinary Shares to employees and their | | |
| | families via the EBT by the Company in the three years ended 30 September 2010 as part of the long-term | | |
| | incentive scheme has given rise to a charge of GBP150,206 to the income statement for the six months ended | | |
| | 31 March 2009. This forms part of a total charge of GBP1,060,964, being: | | |
+----------+----------------------------------------------------------------------------------------------------------------------+----------+-----------+
| | - GBP545,705 evenly spread over the period to 30 September 2010, to reflect the performance period | | |
| | for the 2008 share award | | |
+----------+----------------------------------------------------------------------------------------------------------------------+----------+-----------+
| | - GBP309,155 evenly spread over the period to 30 September 2011, to reflect the performance period | | |
| | for the 2009 share award | | |
+----------+----------------------------------------------------------------------------------------------------------------------+----------+-----------+
| | - GBP206,104 evenly spread over the period to 30 September 2012, to reflect the performance period | | |
| | for the 2010 share award | | |
+----------+----------------------------------------------------------------------------------------------------------------------+----------+-----------+
| | | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | This charge has been calculated in accordance with the requirements of IFRS 2 "Share based payments" by | | |
| | reference to the mid-market price of an Ordinary Share of 38.5p on the approval date of 31 January 2008. | | |
| | The charge has been calculated using the Monte Carlo simulation method. The date of 31 January 2008 has | | |
| | been agreed to be the grant date for all shares issued to employees and their families as this was the date | | |
| | when substantially all terms and conditions of the scheme were agreed by all parties. | | |
+----------+----------------------------------------------------------------------------------------------------------------------+----------+-----------+
| | | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | The potential beneficiaries of the EBT include the executive directors and employees of the Group and their | | |
| | families. | | |
+----------+----------------------------------------------------------------------------------------------------------------------+----------+-----------+
| | | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | In accordance with the requirements of SIC 12 "Consolidation - special purpose entities" and IAS 32, the | | |
| | assets and liabilities of the EBT have been included in the Company's and Group's accounts resulting in the | | |
| | inclusion of GBP222,072 treasury shares, GBP239,669 share premium, GBP4,025 retained earnings, and | | |
| | GBP1,422,305 included in other reserve. | | |
+----------+----------------------------------------------------------------------------------------------------------------------+----------+-----------+
| | | | | | | | | | | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
| | | | |
+----------+---------------+----------+----------+----------+----------+--------------+----------+----------+----------+----------+----------+-----------+
This information is provided by RNS
The company news service from the London Stock Exchange
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