IMPAX Asset Management Group

Website: IMPAX Asset Management Group
Index: AIM
EPIC: IPX
Supersector: Financial Services
Sector: Financial Services
Subsector: Investment Services
Market Cap: £178.03M
Payout Frequency: Semi-Annual

IMPAX Asset Management Group Dividend Analysis and Summary

Key Dividend Details

Final dividend: 8.0p per share (FY2025)
Total dividend for FY2025: 12.0p per share (vs 27.6p FY2024)
Ex-dividend date: 19/02/2026
Record date: 20/02/2026
Payment date: on or around 20/03/2026
Approval: subject to AGM on 05/03/2026
Dividend policy: payout of at least 55% of adjusted profit after tax; FY2025 payout ratio 55.7%
Cover: Adjusted EPS 21.3p implies c.1.8x cover on the 12.0p full-year dividend
DRIP available; election deadline: 27/02/2026

Sustainability and Cover

Earnings support: Adjusted PBT £34.3m, adjusted PAT £27.3m; proposed FY2025 cash dividend outlay c.£15m (interim + final) is covered by adjusted earnings and appears supported by operating cash flow (£32.9m in FY2025).
Balance sheet: £64.7m cash reserves, no debt, providing headroom despite lower profits and AUM.
Policy mechanics: With a variable payout tied to adjusted profits, dividends are likely to fluctuate with AUM/fee income; stabilisation of flows and margins is key for future growth.

Dividend Growth Trajectory

Rebased dividend: FY2025 total reset to 12.0p (from 27.6p), reflecting lower AUM, revenue (down 16.6%) and profits.
Near-term outlook: Any growth will be contingent on halting outflows and rebuilding AUM. Management notes improving trend in H2 and cost base reductions, but visibility remains modest.

Financial Performance and Capital Allocation Context

Profitability: Adjusted operating profit £33.6m (margin 23.7%), IFRS PBT £27.8m; both down year-on-year due to AUM decline to £26.1bn (from £37.2bn).
Capital returns: Ongoing £10m buyback (c.89% complete) and reduced share count modestly support per-share metrics alongside the dividend.
Policy reaffirmed: In May 2025 the company confirmed its payout policy (=55% of adjusted PAT) and rebalanced interim/final split, indicating continued, but flexible, cash returns.

Structural Changes and Notable Updates

M&A: Acquisition of the European assets of SKY Harbor (short-duration high yield) adds c.£1.1bn AUM and broadens fixed income capabilities—potentially diversifying fee streams over time.
Share count changes: Buyback and EBT activity reduced issued shares by c.1.9m, supporting DPS resilience if earnings stabilise.
Product expansion: First US ETF planned for early 2026; near-term P&L impact likely limited but could aid distribution longer term.
Cost actions: ~15% headcount reduction and lower adjusted costs help protect margins and cash generation supporting the dividend.

Risks and Flags to Dividend Stability

AUM pressure: Net outflows of £13.0bn in FY2025 and AUM down ~30% year-on-year; further outflows or weak markets would pressure earnings and thus the variable dividend.
Client concentration: BNP Paribas AM accounts for ~25% of revenue; prior loss of SJP mandates underscores sensitivity to key relationships.
Margin compression: Adjusted margin fell to 23.7%; while costs were cut, sustained lower fee revenue could constrain dividend capacity.
Execution risk: Integration of SKY Harbor unit and expansion into new products (e.g., ETFs) carry operational and ramp-up risks.
Share price volatility: Noted 49% decline in FY25; while non-cash impacts exist, it signals market uncertainty around earnings trajectory.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
20/02/2025	21/03/2025	Final	22.90p	GBX
12/06/2025	18/07/2025	Interim	4.00p	GBX

Total (Annual Dividends Per Share): 26.90p

Dividend Yield = Annual Dividends Per Share (26.90p) ÷ Share Price (147p) = 18.3%

Ex Dividend Date	Payment Date	Type	Amount	Currency
19/02/2026	20/03/2026	Final	8.0000p	GBX
12/06/2025	18/07/2025	Interim	4.00p	GBX
20/02/2025	21/03/2025	Final	22.90p	GBX
13/06/2024	19/07/2024	Interim	4.70p	GBX
08/02/2024	22/03/2024	Final	22.90p	GBX
15/06/2023	21/07/2023	Interim	4.70p	GBX
09/02/2023	21/03/2023	Final	22.90p	GBX
16/06/2022	22/07/2022	Interim	4.70p	GBX
10/02/2022	31/03/2022	Final	17.00p	GBX
10/06/2021	16/07/2021	Interim	3.60p	GBX
18/02/2021	26/03/2021	Final	6.80p	GBX
11/06/2020	17/07/2020	Interim	1.80p	GBX
20/02/2020	27/03/2020	Final	4.00p	GBX
13/06/2019	19/07/2019	Interim	1.50p	GBX
07/02/2019	15/03/2019	Final	3.00p	GBX
14/06/2018	20/07/2018	Interim	1.10p	GBX
14/06/2018	20/07/2018	Special	2.60p	GBX
08/02/2018	16/03/2018	Final	2.20p	GBX
25/05/2017	23/06/2017	Interim	0.70p	GBX
16/02/2017	17/03/2017	Final	1.60p	GBX
26/05/2016	23/06/2016	Interim	0.50p	GBX
11/02/2016	11/03/2016	Special	0.50p	GBX
11/02/2016	11/03/2016	Final	1.20p	GBX
28/05/2015	26/06/2015	Interim	0.40p	GBX
22/01/2015	20/02/2015	Final	1.10p	GBX
21/05/2014	20/06/2014	Interim	0.30p	GBX

Year	Interim	Final	Special	Currency	Total	Change
2024	4.700	22.900		GBX	27.600	0.000
2023	4.700	22.900		GBX	27.600	0.000
2022	4.700	22.900		GBX	27.600	33.980
2021	3.600	17.000		GBX	20.600	139.530
2020	1.800	6.800		GBX	8.600	56.360
2019	1.500	4.000		GBX	5.500	-17.910
2018	1.100	3.000	2.600	GBX	6.700	131.030
2017	0.700	2.200		GBX	2.900	11.530
2016	0.500	1.600	0.500	GBX	2.600	62.500
2015	0.400	1.200		GBX	1.600	14.280
2014	0.300	1.100		GBX	1.400

Number of Shares:

Payment	Paid	Amount
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