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The fair value of
employee services
received in exchange
for the grant of
shares is recognised
as an expense. The
total amount to be
expensed over the
performance period is
determined by
reference to the fair
value of the shares
determined at the date
the employee is deemed
to be fully aware of
their entitlement and
all conditions of
vesting, the 'Grant
Date'. As the Grant
Date is now deemed to
be later than
previously recognised,
the timing and quantum
of charges arising
from the EBT has
changed and it has
been necessary to
restate prior periods.
The impact of this
change on the 31 March
2009 comparative
figures is as follows:
Effect on the statement of comprehensive income Effect on the statement of financial position
Dr/(Cr) Dr/(Cr)
£'000 £'000
Retained earnings - (105)
Long-term incentive 105 -
scheme charge
In addition shares
within the Employee
Benefit Trust that had
fully vested but were
still held by the EBT
were previously
consolidated as part
of the Trust assets at
the end of the interim
period. This treatment
was incorrect and
vested shares are no
longer consolidated as
Trust assets as these
shares have been
transferred to sub
funds in which the
employees and their
families may benefit.
The impact of this
change on the 31 March
2009 comparative
figures is as follows:
Effect on the statement of comprehensive income Effect on the statement of financial position
Dr/(Cr) Dr/(Cr)
£'000 £'000
Other receivables - (163)
Share premium - 162
Own shares - (144)
Retained earnings - 145
4 Estimates
The preparation of
interim financial
statements requires
management to make
judgements, estimates
and assumptions that
affect the application
of accounting policies
and the reported
amounts of assets and
liabilities, income
and expense. Actual
results may differ
from these estimates.
In preparing these
condensed consolidated
interim financial
statements, the
significant judgements
made by management in
applying the Group's
accounting policies
and the key sources of
estimation uncertainty
were the same as those
that applied to the
consolidated financial
statements as at and
for the year ended 30
September 2009. They
include judgements
made in the valuing of
unlisted current asset
investments, potential
impairment of goodwill
and assumptions
regarding the
recoverability of
loans.
5 Financial risk
management
The Group's financial
risk management
objectives and
policies are
consistent with those
disclosed in the
consolidated financial
statements as at and
for the year ended 30
September 2009.
6 Revenue
Revenue for the six
months ended 31 March
2009 includes an
exceptional management
fee of £946k relating
to Impax New Energy
Investors, billed in
that financial period
in accordance with the
Limited Partnership
Agreement.
7 Earnings per share
Earnings per share
(EPS) on a basic and
diluted basis are as
follows:
Profit for the period Ordinary shares in issue (weighted average) Earnings per share
£'000
Six months ended 31
March 2010
Basic 1,202 108,809,749 1.10p
Diluted 1,202 114,696,057 1.05p
Six months ended 31
March 2009 (as
restated)
Basic 1,187 107,799,158 1.10p
Diluted 1,187 115,582,431 1.03p
Year ended 30
September 2009
Basic 2,281 107,799,158 2.12p
Diluted 2,281 115,582,431 1.97p
The comparatives for
the six months ended
31 March 2009 are
restated for the
reasons disclosed in
note 3 "Significant
Accounting Policies".
The effect of these
restatements is that
Basic EPS for the six
months ended 31 March
2009 has increased
from 0.89p to 1.10p
and Diluted EPS has
increased from 0.84p
to 1.03p. The
reclassification of
minority interests at
September 2009 as
described in note 3
has no impact on EPS.
Shares allocated to
the Employee Benefit
Trust (EBT), but not
yet vested, are
classified as 'own
shares' on
consolidation.
The weighted average
number of ordinary
shares for the
purposes of diluted
earnings per share
reconciles to the
weighted average
number of ordinary
shares used in the
calculation of basic
earnings per share as
follows:
Six months ended 31 March 2010 Six months ended 31 March 2009 Year ended 30 September 2009
Weighted average 108,809,749 107,799,158 107,799,158
number of ordinary
shares used in the
calculation of basic
earnings per share
Weighted average EBT 5,886,308 7,783,273 7,783,273
shares not yet vested
Weighted average 114,696,057 115,582,431 115,582,431
number of ordinary
shares used in the
calculation of diluted
earnings per share
In order to show
results from operating
activities on a
comparable basis, an
adjusted profit after
tax per share has been
calculated which
excludes the long-term
incentive scheme
charge:
Six months ended 31 March 2010 Six months ended 31 March 2009 Year ended 30 September 2009
£'000 £'000 £'000
Profit after tax 1,202 1,187 2,281
Long-term incentive - 275 551
scheme charge
Adjusted profit after 1,202 1,462 2,832
tax
Adjusted profit for the period Ordinary shares in issue (weighted average) Earnings per share
£'000
Six months ended 31
March 2010
Basic adjusted 1,202 108,809,749 1.10p
Diluted adjusted 1,202 114,696,057 1.05p
Six months ended 31
March 2009
Basic adjusted 1,462 107,799,158 1.36p
Diluted adjusted 1,462 115,582,431 1.26p
Year ended 30
September 2009
Basic adjusted 2,832 107,799,158 2.63p
Diluted adjusted 2,832 115,582,431 2.45p
8 Dividends
On 10 February 2010 at
the Group's Annual
General Meeting, the
Board approved payment
of a dividend, being
0.40p per share in
respect of the year
ended 30 September
2009 (2008: 0.35p per
share, totalling
£377,293). The
trustees of the
Employee Benefit Trust
waived their rights to
part of this dividend,
leading to a total
dividend payment of
£433,817. This was
paid on 11 February
2010.
The directors do not
propose an interim
dividend for the six
months ended 31 March
2010.
9 Goodwill
Cost £'000 At 1 April
2009, 30 September
2009 and 31 March 2010
1,629 Goodwill
arose on the
acquisition of Impax
Capital Limited on 18
June 2001. Following
the transfer of all
Impax Capital's
assets, liabilities
and trading activities
to Impax Asset
Management Limited on
30 September 2009 the
goodwill amount
arising on
consolidation is
deemed to remain
within the Group.
The Group tests
goodwill for
impairment annually or
more frequently if
there are indications
that goodwill may be
impaired.
10 Other financial assets
31 March 2010 31 March 2009 30 September 2009
£'000 £'000 £'000
Loan receivable
Due after one year 759 1,178 792
Due within one year 478 380 452
1,237 1,558 1,244
The maximum exposure
to credit risk for
this loan receivable
is represented by its
carrying amount. The
Directors do not
consider that this
balance is impaired at
the date of these
interim financial
statements. The
weighted average
interest charged on
this loan is 2% (2009:
2%). The Group holds a
part of the Nukern Oil
Field as security in
respect of this loan.
Further details are
provided in the
consolidated financial
statements of the
Group as at and for
the year ended 30
September 2009.
11 Current asset
investments
Investments in consolidated funds - held for trading Other investments - held for trading Total
£'000 £'000 £'000
At 1 October 2008 2,523 1,648 4,171
Transfer to other (1,357) 1,357 -
investments
Disposal of current (1,166) - (1,166)
asset investments
Fair value movements - (26) (26)
At 31 March 200 - 2,979 2,979
Additions - 289 289
Acquisition of listed 2,123 (1,816) 307
investments on
consolidation of
subsidiary
Fair value movements - 352 352
At 30 September 2009 2,123 1,804 3,927
Additions - 2,161 2,161
Disposal of current (1,213) - (1,213)
asset investment
Fair value movement 38 130 168
At 31 March 201 948 4,095 5,043
On 21 May 2007, the
Group made an
investment of
E2,200,000
(£1,506,851) 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
E100 per share. The
IARF, which is managed
by a subsidiary
undertaking of the
Company had a total
net asset value
("NAV") of E3,560,856
at 31 March 2010. The
Group's investment in
the IARF represents
52.08% of the NAV at
31 March 2010 (30
September 2009:
52.98%; 31 March 2009:
42.7%). At 31 March
2010 this investment
has been reported as a
subsidiary and the
underlying investments
consolidated.
On 3 March 2008, the
Group made an
investment of
£1,500,000 in the IFSL
Impax Environmental
Leaders Fund ("IEL").
During October 2008
the holding reduced
below 50% and has
remained below 50%
ever since. As at the
date of these interim
financial statements
the holding was 25.44%
and because the Group
is not deemed to
control the fund due
to it having
independent directors
who have the authority
to remove Impax as
investment managers at
their own discretion,
this investment is not
consolidated. Instead
the Group has applied
exemptions from IAS 28
"Associates" available
to Venture Capital and
Hedge fund businesses
not to equity account
for this investment as
an associate.
The investments in
IARF and IEL are
revalued to market
value using quoted
market prices that are
available at the date
of these financial
statements. The quoted
market price is the
current bid price.
Disposals in the
period represent sales
of investments by the
Impax Absolute Return
Fund.
The Group has a E3.76m
commitment to Impax
New Energy Investors
LP, a partnership
based in England and
Wales. The addition in
other investments in
the period of £2,161k
represents the second
loan call of E2,406k
(64% of the Group
commitment) on this
investment. At the
period end the Group
has invested a total
of E2,740k (73% of the
Group commitment). The
Group commitment of
E3.76m represents
3.76% of the total
commitment of all the
partners in Impax New
Energy Investors LP.
The Group has a
further commitment of
E2m to Impax New
Energy Investors II
LP, a partnership
based in England and
Wales which was
established on 23
March 2010. At the
period end no calls
had been made on the
commitment which
remains outstanding.
The Group commitment
of E2m represents
1.42% of the total
commitment of all the
partners in Impax New
Energy Investors II
LP.
12 Cash and cash
equivalents
For the purposes of
the cash flow
statement, cash and
cash equivalents
includes the
following:
31 March 2010 31 March 2009 30 September 2009
£'000 £'000 £'000
Cash at bank and in
hand
Readily available for 2,344 5,564 6,694
the principal
operating activities
of the Group
Not available for the 3,710 - 3,590
Group
6,054 5,564 10,284
Short-term borrowings
Not available for the (1,065) - (684)
Grou
4,989 5,564 9,600
13 Group risk
The Group's principal
risks remain as
detailed within the
directors' report of
the Group's Annual
Report and are
categorised as
financial, investment,
and operational.
14 Related party
transactions
In the ordinary course
of business, the Group
undertakes
transactions with
related parties, as
defined by IAS 24
"Related party
disclosures". Material
related party
transactions are set
out below. There are
no significant changes
in the type or nature
of related party
transactions from
those disclosed in the
2009 Annual Report and
Financial Statements.
All balances were
unsecured. Unless
stated otherwise
balances outstanding
were £nil.
Related party
transactions with
entities with
significant influence
over the Group
BNP Paribas Investment
Partners is a related
party of the Group by
virtue of owning a
27.9% equity holding.
Six months ended 31 March 2010 Six months ended 31 March 2009 Year ended 30 September 2009
£'000
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