Another leap in scale and outlook still strong
FY21 (to 30 Sept) saw Impax continuing to scale at a pace unmatched by any UK-listed asset manager, and the broader sustainable investing market. AUM reached £37.2bn, 84% up from 30 Sep 20 (£20.2bn). By 31 Oct 21 AUM grew another 4.6% to £38.9bnFinancial results for FY21 were hugely impressive with revenue up 64% to £143.1m (higher than our previous forecast of £139.4m) and adjusted operating profit* up 140% to £55.8m (again higher than our previous forecast of £49.7m, and providing evidence of substantial operational leverage). Cash reserves grew 87% to £70.1m, and the full-year dividend increased by 140% to 20.6p
Impax’s impeccable sustainability credentials, backed up by a track-record of delivering superior investment returns, and its established and successful distribution channels in the major capital markets of the US, Europe and Asia, leads us to conclude that its growth trajectory is likely to remain strong.
On the basis of this AUM outlook and higher than expected revenue and profits for FY21, we raise our fundamental valuation from 1300p to 1450p, noting that our forecast AUM growth over the next five years (CAGR of 19%) is less than some estimates of the growth of the overall sustainable investing market.
Brooks MacDonald Group is an independent investment management firm. Co. has four segments: Investment Management, which provides discretionary investment management to private investors, pension funds, charities and trusts through Bespoke Portfolio Service and Managed Portfolio Service; Financial Planning, which delivers both fee based financial advice to high net-worth families, and employee benefit consultancy to small and medium sized employers throughout the U.K.; Funds and Property Management, which engages in new investment across the range of funds with the Defensive Capital Fund; and International, which includes the Channel Islands business discretionary funds under management.
Impax Asset Management Group is an investment firm, providing listed and private equity strategies primarily to institutional clients. As of Sep 30 2017, Co. has total assets under management and advice of £7.30 billion.
Polar Capital Holdings is an investment management company providing professional and institutional investors a range of geographical and sector funds. Co. manages 25 funds and four managed accounts across a range of long only and alternative products. Co. has one class of business, being the provision of investment management and advisory services. As of Mar 31 2017, Co. had total assets under management of £9.27 billion.
Tatton Asset Management is engaged in providing a range of services to the Financial Conduct Authority ("FCA") directly authorized financial adviser ("DA IFA") marketplace encompassing discretionary fund management, regulatory and compliance services and mortgage services. Co.'s discretionary portfolio management ("DFM") service operates on ten United Kingdom adviser WRAP platforms and can be integrated into the growing number of adviser WRAP platforms in the market. Co. provides support services to independent financial advisors ("IFA"s), enabling DA IFA firms to provide compliant and effective investment portfolio management for their platform based clients.
Equity Development enables companies to become better understood and supported by investors. Since our launch in 1996 we have consistently focused on helping our clients improve their communication and relationships with both existing and potential shareholders. Our clients have come from a wide variety of sectors and domiciles, are both private and quoted and range in size from micro-cap to $multi-billions. We offer free access to company research notes written by experienced analysts. These notes include detailed forecasts, financial models and a fair value. We host regular Private Investor Forums at which investors have the opportunity to hear company directors present, and to ask questions. These are free to attend. We broadcast live Webinars with company management that include active Q&A. We also make the recordings available online. We arrange face to face meetings between private investors and company management. We are active users of Twitter, commenting daily on company news, share price moves, Directors’ Dealings, Equity Development Research Notes & Events.
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