Impax slides into the red but ups divi by 7%

Impax Asset Management is to raise its dividend by 7% despite slipping into the red over the year on the back of £8.7 million share scheme payout.

The specialist fund group saw revenues of £18.6 million over the 12 months to the end of September, down from £20.9 million in 2011, while its £4.7 million loss before tax compares to a £1.7 million profit the previous year. The £8.7 million to the final component of charges related to the company’s historical share-based incentive schemes and Impax has cash reserves £19.3 million.

Difficult conditions for environmental stocks contributed to the group’s assets under management falling from £1.9 billion to £1.83 billion year on year, but the board is recommending that the dividend is increased from 0.70 pence per share to 0.75 pence.

Chairmain Keith Falconer said: ‘Our cash flow remains strong and we are proposing a modest dividend increase for the year to 0.75 pence per share, in line with the board’s progressive dividend policy and reflecting our confidence in the group’s future growth potential.’

He added that the group’s cost base increased over the last 12 months as it invested in platforms for future growth. These include setting up a fund for US domestic and launching its first private equity fund.