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(Sharecast News) - Shares in Impax Asset Management Group fell on Monday, after "challenging" market conditions hit assets under management and weighed heavily on profits.
The specialist asset manager, which focuses on sustainability, saw revenues slide 16.6% in the year to 30 September, while adjusted operating profits slumped 36.2% to 33.6m.
Assets under management were 26.1bn at the period end, against 37.2bn a year previously.
As at 1000 GMT, shares in the AIM-listed firm were 7% lower at 161.85p.
Impax said the first half especially had been "challenging".
Chief executive Ian Simm said global markets had initially risen sharply as the fiscal year got underway, on the prospect of a pro-business US administration. However, they soon turned "volatile, as investors struggled to interpret the administration's policy signals.
"Further moments of volatility included the disruptive threat to the AI industry from Chinese company DeepSeek and the so-called Liberation Day in April, which triggered a sudden collapse in investor sentiment."
Net outflows were 10.2bn in the first half, and 13bn over the full year.
However, Simm said he remained "highly confident" about Impax's long-term outlook.
"The economic case for the transition to a more sustainable economy continues to build, as consumers increasingly prefer more efficient, less polluting goods and services," he noted. "Despite the challenging backdrop, the company remains profitable, debt-free and well capitalised."
Stuart Duncan, analyst at Peel Hunt, said: "There are some early signs that that the challenges of the last few years are starting to abate, with investors starting to reconsider the US overweight position.
"This should give cause for optimism and start to translate into a more constructive backdrop for asset gathering, with Impax increasingly well positioned as some competitors start to retreat."
Peel Hunt, which has a 'buy' recommendation on the stock, is Impax's nominated advisor and joint broker.