Impax Asset Management Group PLC on Wednesday reported a drop in its full-year profit as costs rose, and also said it suffered net outflows.

The London-based sustainability-focused specialist investor said pretax profit for the year ended October 30 fell 28% to £52.1 million from £72.6 million the year before, as operating costs increased by 13% to £124.1 million from £110.2 million the previous year.

Impax also suffered net outflows of £144 million from listed equities.

Meanwhile revenue grew by 1.7% to £178.4 million from £175.4 million a year ago and assets under management increased by 4.8% to £37.4 billion from £35.7 billion the year before.

Impax declared a final dividend of 22.9 pence per share, bringing its total dividend to 27.6p per share, unchanged from financial 2022.

Looking ahead, Chief Executive Ian Simm said: ‘In a year where we have celebrated Impax’s 25th anniversary, our conviction in our investment thesis focused on the transition to a more sustainable economy is stronger than ever. With valuations increasingly attractive, our investment teams have identified several compelling themes that we believe will play out over the medium to long term, for example the adoption of renewable energy, the provision of climate resilient water supply and infrastructure and the deployment of new technology to improve access to healthy food and financial services worldwide.’

Shares in Impax were up 3.1% to 439.50 pence each in London on Wednesday morning.

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