Impax Asset Management Group PLC on Wednesday said profit rose in the first half of its financial year, as the company expressed confidence that an increasing focus on sustainability will drive future success within its portfolio.

Impax is a London-based asset manager, focused investments in companies in the renewable energy, and waste and water management sectors. Shares in Impax were down 10% at 449.95 pence per share in London on Wednesday morning.

For the six months ended March 31, Impax reported £24.6 million in pretax profit, up 15% from £21.4 million a year prior.

Revenue for the half was down 2.1% to £86.2 million from £88.0 million.

Basic earnings per share were up 10% to 14.3 pence from 13.0p.

Impax declared an interim dividend of 4.7p for the period, flat from the previous first half.

Assets under management rose 5.9% to £39.62 billion as at March 31 from £37.40 billion on September 30.

Impax credited this change to a positive £4.9 billion impact from ‘investment performance, market movement, and foreign exchange’.

This was partially offset by net outflows of £2.7 billion, Impax said, owing to ‘asset allocation decisions by clients primarily within our wholesale channel in Europe’.

Looking ahead, Chief Executive Officer Ian Simm said: ‘Following nearly two years of relative headwinds, asset owner sentiment around the transition to a more sustainable economy and associated areas of Impax expertise has improved in recent months. We believe that companies providing innovative solutions that address environmental and social challenges remain compelling. Over the long run, we believe these companies can benefit from rising demand for their products and services and deliver strong earnings growth.’

Regarding its sustainability-focused portfolio, Impax said: ‘We believe that the drivers of the transition to a more sustainable economy remain intact and that companies providing innovative solutions that address environmental and social challenges remain compelling. Over the long run, we believe these companies can benefit from rising demand for their products and services and deliver strong earnings growth.’

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