Impax Asset Management Group plc
Annual Report and Accounts 2010
The environmental  
investment specialist Impax Asset Management Group plc 
is a leading investment manager 
dedicated to the rapidly expanding 
environmental markets sector, 
focusing on alternative energy,  
water and waste.
In a world of increasingly scarce natural resources, 
inadequate infrastructure and unacceptable pollution, 
we believe that companies active in environmental 
markets will continue to offer investors excellent risk-
adjusted returns. We have over a decade of investment 
experience, a seasoned, stable team and a compelling 
track record. 
We focus on a small number of carefully chosen 
investment strategies, and manage or advise pooled 
vehicles and segregated accounts for institutional 
investors in multiple countries. Our business is scalable, 
with a strong distribution network, has an efficient 
capital structure and generates significant free 
cash flow.
Contents
01 Highlights 2010
02 Impax – Key Facts
03 Chairman’s Statement
05 Chief Executive’s Report
09 Directors’ Profiles
10 Senior Personnel
11 Officers and Advisers
12 Directors’ Report
17 Independent Auditors’ Report
18 Consolidated Statement of Comprehensive Income
19 Consolidated Statement of Financial Position
20 Company Statement of Financial Position
21 Consolidated Statement of Changes in Equity 
22 Company Statement of Changes in Equity 
23 Consolidated Statement of Cash Flows
24 Company Statement of Cash Flows 
25 Notes to the Financial Statements  
80
100
120
140
160
30 Sep 05
30 Sep 06
Long only strategies
30 Sep 07
30 Sep 08
30 Sep 09
30 Sep 10
MSCI World Index (Net Return)
Data re-based to September 2005
Impax Asset Management Group plc
Annual Report and Accounts 2010
01
Highlights
Increase in AUM* (44%) to £1,823 million > 
Subsequent to year end, further increase to £2,251 million  
(31 December 2010)
Strong financial performance
 > 
Revenue up 48% to £15.3 million 
Profit before tax up 109% to £5.2 million 
Adjusted earnings per share up 33% to 3.50p 
Operating cash flow up 57% to £4.2 million
Sustained investment performance
 > 
Long only strategies returned > double MSCI World Index over 5 years
Significant mandate wins > 
Skandia Ethical Fund: £74 million 
Local Government Super, Australia: A$50 million 
LD Pension Fund, Denmark: €75 million (subsequent to year end) 
Successful fund raising
 > 
Impax Asian Environmental Markets plc: £272 million  
(of which £131 million subsequent to year end) 
Impax New Energy Investors II LP: €275 million in first 3 closings  
(of which €134 million subsequent to year end)
International expansion
 > 
Incorporation of Hong Kong subsidiary (subsequent to year end)
*  Assets under discretionary and advisory management
Highlights
2010
Impax long only strategies versus MSCI World Index over five years in GBP Impax Asset Management Group plc
Annual Report and Accounts 2010
02
Impax – Key Facts
Impax has an excellent investment track record, powerful 
distribution partners and a highly qualified team
01
03
02
04
06
08
05
07
Attractive target markets
Focused approach Comprehensive product range
Stable investor base
Impressive asset growth
Extensive distribution
Strong performance
>US$500bn
Annual revenue in environmental markets
10-20%
Compound annual growth rate
6
12+ years
Since Impax team established
15 years
Average experience of  
investment team members
24 Funds and accounts
95%
Investors in “Impax-Label”  
funds are institutional
 £1bn increase in AUM
(between 1 October 2009 and 
31 December 2010)
Countries actively 
targeted
Long only strategies returned
69% Over 5 years 
versus
24%  
       
MSCI World Index
  Listed
equities
Private 
equity
“Impax-Label” funds
Third party funds
Segregated accounts
Investment strategies 
across two divisions
20
Strategies endorsed by leading 
global consultants Impax Asset Management Group plc
Annual Report and Accounts 2010
03
Key Facts
Chairman’s Statement
Chairman’s Statement
For the Year Ended 30 September 2010
Impax has sustained its strong track 
record and once again delivered 
substantial growth for shareholders
Since my statement for the year ended 
September 2009, the world economy 
and financial markets have continued to 
recover and the investment management 
sector has emerged leaner and, I hope, 
in a more sober frame of mind. Against 
this backdrop, I am pleased to report 
that Impax has sustained its strong track 
record and once again delivered healthy 
growth for shareholders.
Over Impax’s financial year (the “Period”) 
from 1 October 2009 to 30 September 
2010, assets under discretionary and 
advisory management (“AUM”) 
expanded from £1,263 million to £1,823 
million, an increase of 44 per cent. Since 
the end of the Period we have assumed 
responsibility for management of an 
additional £131 million of assets raised 
by our investment trust focused on 
the Asia-Pacific region and €134 million 
of further capital commitments to our 
second private equity fund. On 31 
December 2010, inclusive of these 
amounts, AUM was £2,251 million. 
Over the past twelve months, the 
backdrop to environmental investing has 
continued to strengthen. Weather 
analysts expect that 2010 will turn out to 
be one of the hottest years on record, 
while extreme weather events in Pakistan 
(floods), Russia (heat waves and 
drought), China (floods) and elsewhere 
reinforced fears that significant climate 
change is already upon us. The trend of 
increasingly unpredictable weather has 
motivated voters and policy makers in 
the European Union, Australia and 
California to press ahead with policy to 
reduce greenhouse gas emissions and 
helped to create a sense of urgency at 
December’s climate conference in 
Cancún, Mexico. Similarly, during 2010 
governments in several emerging market 
economies declared ambitious policies 
to reduce pollution, improve energy 
security and stimulate the growth of 
domestic clean technology sectors. 
Results for the year end and 
proposed dividend 
Turnover for the year was £15,339,000 
(2009: £10,391,000), a 48 per cent 
increase over the year. 
Profit before tax was £5,177,000 (2009: 
£2,473,000, including a charge in respect 
of the Group’s long-term, share-based 
incentive scheme of £552,000). The 
profit included £1,002,000 arising from 
full repayment at face value of a loan 
note issued to the Company in 2004 
when Impax exited from a legacy oil 
business.
The effective tax rate for the Period was 
27 per cent; for the financial year ending 
30 September 2009 the tax rate was 
substantially lower (8 per cent) as a result 
of credits arising from the recognition of 
deferred tax assets.
The Board regards the most relevant 
measure of the year’s earnings to be 
earnings per share (“EPS”) as adjusted 
to exclude the charges for our long-term 
incentive scheme settled from the 
issuance of primary shares. On this 
basis, EPS were 3.50 pence (adjusted), 
a 33 per cent increase compared to last 
year (2.63 pence (adjusted)). The 2010 
EPS result included 0.79 pence 
attributable to the uplift in value of the 
loan note; the 2009 EPS result included 
0.65 pence attributable to one off tax 
benefits. 
The Group’s balance sheet 
also strengthened during the Period and 
cash generation has increased 
significantly. At the end of the financial 
year, shareholders’ equity had increased 
to £16,903,000 (2009: £13,850,000) and 
cash reserves available to shareholders 
were £8,339,000 (2009: £6,694,000). 
The Group remained debt free during the 
Period.
In view of the Group’s strong financial 
position, I am pleased to report that the 
Board recommends an increased 
dividend of 0.60 pence per share (2009: 
0.40 pence per share). The dividend 
proposal will be submitted for formal 
approval by shareholders at the 
forthcoming Annual General Meeting on 
2 March 2011. If approved, the dividend 
will be paid on or around 11 March 2011. 
The Board does not currently intend to 
recommend the payment of interim 
dividends. 06
07
08
09
10
3.84
7.11
11.39
10.39
15.34
06
07
08
09
10
0.50
1.82
3.52
2.47
5.18
06
07
08
09
10
1.59
1.20
3.36
2.63
3.50
06
07
08
09
10
0.00
0.00
0.35
0.40
0.60
06
07
08
09
10
0.43
0.98
1.09
1.26
1.82
Impax Asset Management Group plc
Annual Report and Accounts 2010
04
Revenue
£ million
Profit before tax
£ million
Earnings per share (basic adjusted)
pence
Dividend
pence
AUM
£ billion
Prospects
Over recent years institutional investors 
have generally been disappointed by 
investment returns from mainstream 
products, which have fallen well behind 
levels required to deliver on stated 
objectives. As a consequence, many are 
revisiting their asset allocation models 
and examining whether new strategies 
and asset classes can improve expected 
risk-adjusted returns. In this context, it is 
encouraging that many are reviewing in 
detail the credentials of investment 
portfolios in the environmental sector, 
Impax’s chosen area of focus. Evidence 
continues to build that this sector is 
growing more rapidly than the overall 
economy, and I anticipate that 
allocations to strategies such as those 
run by Impax will grow considerably. 
J Keith R Falconer
7 January 2011
Chairman’s Statement continued Impax Asset Management Group plc
Annual Report and Accounts 2010
05
Chief Executive’s Report
Chief Executive’s Report
For the Year Ended 30 September 2010 
Impax has continued to make significant 
progress in developing its status as a 
leading investment manager in the 
environmental sector
After a year of considerable uncertainty 
in the global economy and financial 
markets, it is encouraging to report that 
equity markets appear to have stabilised 
and are positioned for expansion. As 
described below, Impax has continued 
to make significant progress in 
developing its status as a leading 
investment manager in the environmental 
sector and has further demonstrated the 
attractions of its business model.
Sector developments
Just over a year ago, the international 
community was riveted by the prospects 
for an agreement in Copenhagen on 
limiting greenhouse gas emissions. Risk 
appetite was starting to return to equity 
markets, and many investors were 
betting on a strong year ahead for the 
environmental sector. However, the 
actual performance during 2010 of 
Impax’s chosen sector was largely driven 
by a number of unconnected factors. 
Between January and June, concerns 
about the health of European economies 
undermined valuations of all stocks with 
regional exposure, and environmental 
markets, with their relatively high 
dependence on public sector 
expenditure, were particularly badly 
affected. In addition, the rapid adoption 
by power generators in the United States 
of low cost shale gas reduced power 
prices significantly, undermining the 
prospects for companies in the domestic 
renewable power generation and energy 
efficiency sectors.
Over the same timescale, Asian 
environmental markets continued to 
develop rapidly, particularly on the back 
of positive policy statements from 
governments in the region. China 
reconfirmed its commitment to securing 
15 per cent of its electric power from 
renewable energy sources by 2020, a 
target that is expected to require at least 
US$180 billion of capital expenditure. 
Meanwhile, India announced a similar 
target of 10 per cent of power from 
renewables by 2015, and Japan 
introduced tariff support as part of its 
policy to source 10 per cent of primary 
energy from renewables by 2020.
Notwithstanding weakness earlier in the 
year, environmental sector stocks have 
again out-performed general equity 
markets: during calendar year 2010 the 
FTSE Environmental Opportunities All 
Share Index grew 22 per cent, while the 
MSCI World Index expanded by 15 per 
cent (both priced in Sterling). Stocks 
exposed to the Asia Pacific region, 
stocks of larger companies and stocks in 
the water sector were typically strong 
contributors, while small cap stocks and 
those in the renewable energy sector 
tended to under-perform.
Assets under management and 
fund flows
The Company’s principal divisions Listed 
Equity and Private Equity, have made 
substantial contributions to Impax’s 
increase in AUM since 1 October 2009.
During the Period, Listed Equity funds 
that we manage or advise secured 
net inflows of £401 million, comprising 
£151 million into “Impax-Label” funds, 
which we typically manage for UK 
investors, and £250 million into Third 
Party Funds/Accounts. 
In the former category, our second 
investment trust, Impax Asian 
Environmental Markets plc (“IAEM”), 
launched in October 2009 with £104.5 
million of assets. IAEM subsequently 
attracted £131 million additional capital 
in a C Share completed on 22 October 
2010, i.e. after the Period end. 
In the latter category, the development of 
our Institutional and Segregated 
Accounts business has been particularly 
encouraging. In October 2009 we 
commenced management of a second 
account for Russell Investments, a 
further endorsement of our reputation 
among international investors. In April 
2010 we received the final tranche of 
funding for a €150 million mandate from 
a European institutional investor, and in 
August 2010 we began to manage a 
A$50 million account for Local 
Government Super, our first major client 
in Australia. In November 2010 i.e., after 
the end of the Period, we announced 
that Lønmodtagernes Dyrtidsfond 
Pension Fund of Denmark had appointed 
us to manage €75 million in a segregated 
account following our Environmental 
Leaders strategy; we expect this 
mandate to commence later this month.  34%
19%
12%
19%
11%
5%
Private Client Managers
Pension Funds
Insurance Companies
Other Institutions
Multi Managers
Others
1,048
197
153
192
230
3
Environmental Specialists
Environmental Leaders
Asia-Paciﬁc
Water
Private Equity
Hedge
Impax Asset Management Group plc
Annual Report and Accounts 2010
06
Our Third Party Funds business has 
also made progress. In June, Skandia 
Investment Group appointed us as 
manager of the £74 million Skandia 
Ethical Fund, which was refocused on 
our Environmental Leaders strategy, 
albeit with an additional ethical screen. 
In view of Skandia’s powerful distribution 
capabilities in the UK retail market, we 
decided to wind up the IFSL Impax 
Environmental Leaders Fund, which 
had attracted ca. £7 million of capital. 
Our Private Equity division has also had 
a very successful year. In March we held 
a first closing of Impax New Energy 
Investors II LP (“Fund II”) with €141 million 
of capital from ten limited partners, the 
majority of whom had invested in Fund I. 
Fund II has a similar objective to Fund I, 
i.e., to provide strong capital growth by 
investing in renewable energy power 
generation and related assets in 
Europe. Subsequently, we have raised 
additional capital for Fund II, taking 
total commitments to €275 million and 
we expect to expand this fund further 
before its final closing, which is 
scheduled for March 2011. As described 
further below, we made the first 
investment for Fund II in December.
Cash flow
Operating cash flow before movements 
in working capital increased over the 
Investment performance
Listed equities
We continue to see strong investment 
performance as a top priority, and I 
am pleased to report that our track 
record of long-term out-performance 
has continued. During the Period, 
we completed our adoption of Global 
Investment Performance Standards 
(“GIPS”), which enhances considerably 
our ability to report investment 
performance with a methodology 
that is accepted worldwide by 
institutional investors.
Over the past few years we have 
widened our range of listed equity 
strategies to capitalise on new 
investment opportunities and respond 
to demand from clients. We now have 
four distinct long-only investment 
strategies: Environmental Specialists, 
which focuses on companies that have 
a majority of their business in the 
environmental sector; Environmental 
Leaders, which comprises specialists 
plus more diversified companies; 
Asia-Pacific, with stocks based in the 
region; and Water. 
As shown in Table 1, we remain 
very encouraged by the investment 
performance of the portfolios that 
we manage. Over five years, our 
Environmental Specialists strategy 
has delivered an annualised 
performance, measured in Sterling, 
of 10.6 per cent, significantly ahead 
of the MSCI World Index, which has 
returned 4.3 per cent (annualised). 
In order to prepare for future growth, we 
have also been working hard to generate 
out-performance in more recently 
established long-only strategies. As 
discussed in previous statements, our 
Environmental Leaders strategy is 
designed to capture the upside from our 
full investment universe of stocks; the 
resulting portfolio typically has a lower 
volatility and tracking error against global 
equity indices than the Environmental 
Specialists strategy, and is therefore 
suitable for an investor seeking broad 
exposure to environmental markets. The 
Environmental Leaders strategy has an 
annualised performance of 18.4 per cent 
over two years which is ahead of the 
MSCI World Index, up 15.5 per cent over 
Stable, diverse client base
“Impax-Label” funds 
(as at 30 September 2010)
Range of investment strategies
“Impax-Label” funds AUM (£m) 
(as at 30 September 2010)
Period to £4.3 million (2009: £2.7 million), 
which was equivalent to £354,000 per 
month on average (2009: £225,000). 
Given the recent increase in AUM, 
monthly operating cash flow has 
improved further.
As reported in the Interim results for the 
six month period ended 31 March 2010, 
the Group disbursed additional funds to 
Impax New Energy Investors LP, and to 
date has paid in €2,750,000 out of its 
total commitment of €3,756,000. 
The closure of the IFSL Impax 
Environmental Leaders Fund released 
£1.4 million of seed capital to the Group.
Final redemption proceeds of 
$3,695,000 were received after the 
period end in respect of a secured loan 
note from All American Oil and Gas 
Incorporated (“AAOG”). The note, which 
was payable in full on or before 31 July 
2011, was issued to Impax by AAOG in 
July 2004 as part of AAOG’s purchase 
of Impax’s legacy oil operations. The 
proceeds represent £1,241,000 more 
than the previous book value of the note 
on Impax’s balance sheet; in accordance 
with IFRS, £1,002,000 has been included 
in profit before tax for the year ended  
30 September 2010.
Chief Executive’s Report continued 30 September 2010
30 September 2009
£ million
929 88 230 560 16
623
1,823
1,263
82 130 417 9
UK/Ireland
Other Europe
Asia-Paciﬁc
North America
Private Equity
30 September 2010
30 September 2009
£ million
570 245 230 778
458
1,823
1,263
102 130 575
Impax Funds 
White Label Funds
Segregated Accounts
Private Equity
Impax Asset Management Group plc
Annual Report and Accounts 2010
07
Chief Executive’s Report
AUM by geographic region (source of funding) AUM growth across business channels
the same period, with a very similar 
measure of risk (as measured by 
volatility). The strategy will have a three 
year track record in March 2011, after 
which we expect it to be of interest to a 
wider group of investors.
Private equity
During the Period, we completed the 
investment programme for Impax New 
Energy Investors (“Fund I”), our first 
private equity fund, which has €125 
million of commitments, by allocating 
capital to a multi-project solar 
investment programme in Italy. During 
August, Fund I acquired an Italian project 
company with the right to build 9MW 
in the Lazio region, while in November, 
the Fund invested in a company 
developing 10.9MW in Puglia. These 
commitments have provided the 
portfolio with further diversification. 
In parallel, during calendar 2010 Fund I’s 
portfolio of Spanish solar projects 
again beat its budget and produced 
an attractive cash yield. At the time of 
writing, we are analysing the implications 
for Fund I of a new Royal Decree passed 
unexpectedly in Spain on 23 December 
2010, which, if formally ratified by the 
Spanish parliament later in January 2011, 
will cap the subsidies to solar power 
generators. Meanwhile, we expect to 
complete Final Acceptance Testing for 
these assets during the first half of 2011.
In December we completed the first 
investment for Fund II through the 
purchase from the German company 
Conergy AG, of 23MW of operating wind 
farms as well as a development pipeline 
of 93MW in Germany and 285MW in 
France, some of which we expect to be 
ready target for construction in 2011. 
We expect to use the business as a 
platform for growth in these markets.
Distribution
During the Period, our external 
distribution network has developed 
significantly in line with our policy of 
focusing internal resources on our 
core skill of investment management. 
The merger of BNP Paribas Investment 
Partners (“BNPP IP”) with Fortis 
Investment Management, which was 
completed in April 2010, has extended 
the sales team that is able to promote 
Impax’s products. For example, the 
expanded BNPP IP now has much 
stronger coverage in the Scandinavian 
and Benelux regions, both of which 
have historically shown a willingness 
to commit capital to environmental 
markets. BNPP IP is now able to 
represent Impax in most parts of 
continental Europe and the Asia-Pacific 
region. At the end of the Period, funds 
raised by or managed for BNPP IP 
represented 21 per cent of our 
total AUM.
In the United States, we have continued 
to support Titanium Asset Management, 
who have been acting as our non-
exclusive distributor since January 2010. 
In recognition of the structure of the 
Table 1: Performance of investment strategies versus benchmark and peers (Sterling)
       5 year 5 year 
  2006 2007 2008 2009 2010 annualised volatility
Impax Environmental Specialists strategy  22.2% 17.4% –20.3% 29.1% 12.0% 10.6% 22.0%
Impax Environmental Leaders strategy    –9.0%* 21.9% 15.1%
Impax Water strategy     24.9% 20.3%
MSCI World Index  5.3% 7.2% –17.9% 15.7% 15.3% 4.3% 16.8%
MSCI Small Cap Index  2.8% –0.9% –19.5% 28.3% 30.1% 6.5% 20.3%
Impax Asia-Pacific strategy      10.9%** 26.4%
MSCI AC Asia-Pacific ex Japan Index     8.7%** 21.8%
Custom ecology peer group average  23.2% 12.3% –30.0% 21.1% 5.9%  5.8%  19.9%
Custom alternative energy peer group average  14.7% 56.9% –40.7% 26.9% –8.2%  3.3%  28.2%
* Represents partial year 3 March 2008 to 31 December 2008
** Represents partial year 1 November 2009 to 31 December 2009 Impax Asset Management Group plc
Annual Report and Accounts 2010
08
US investment management sector, 
we have been focusing on educating 
leading investment consultants in the 
characteristics of and potential for the 
environmental sector, logging our 
credentials and track record on key 
databases and engaging with receptive 
asset owners. We expect this systematic 
approach to produce results during 2011. 
Meanwhile, the fund that we sub-advise 
for Pax World, which currently has 
ca. US$31 million of assets, has 
sustained its strong investment 
performance. Once this fund reaches its 
third anniversary in March 2011, we 
expect it to pick up positive independent 
ratings and to attract additional capital.
In the United Kingdom we have 
continued our long and successful 
partnership with Collins Stewart’s closed 
ended companies team. Collins Stewart 
helped us to launch IAEM in October 
2009, and then, as described above, to 
expand the same trust in October 2010. 
Separately, since May 2010, we have 
been directly promoting an open ended 
version of IAEM to UK investors (through 
our funds platform in Ireland).
In parallel, we are continuing to engage 
with representatives of the major 
investment consultants around the 
world. After many years of dialogue, we 
believe we are well regarded by many of 
these “gatekeepers”, and several of them 
actively recommend one or more of our 
investment strategies to their clients. In 
particular, we have secured all of our 
Segregated Account clients after positive 
endorsement by consultants.
Infrastructure and support
Behind any successful investment 
management team is an experienced 
and well resourced support team. As 
our business has expanded, we have 
continued to invest in this key area. 
During the Period, we hired additional 
staff into our compliance, operations, 
marketing, and finance teams, taking the 
headcount in this area from 17 to 20.
In consultation with some of our larger 
clients, we decided during summer 2010 
to seek external validation of the internal 
controls for our listed equities investment 
activity using the widely recognised 
SAS 70 format. KPMG are currently 
finalising their reports, and we expect 
to be able to share the results with 
investors and prospective investors in 
the near future.
At the end of the Period, our total 
headcount was 40 permanent and four 
temporary staff, up from 34 permanent 
and four temporary staff at the start of 
the Period.
Hong Kong subsidiary
In recognition of the rapidly growing 
demand for our investment expertise in 
the Asia-Pacific region, during summer 
2010, we decided, in consultation with 
our local partner Ajia Partners Asset 
Management (“APAM”), to incorporate 
a subsidiary in Hong Kong. Impax 
Asset Management (Hong Kong) 
Limited (“Impax Hong Kong”), which 
was incorporated in October and is 
100 per cent owned by Impax Asset 
Management Group plc, is currently 
applying to the Hong Kong Securities 
and Futures Commission for a licence as 
an asset manager. Subject to regulatory 
approval, we expect that, for the 
foreseeable future, Impax Hong Kong 
will employ a small number of investment 
analysts and will share an office with 
APAM, who will continue to provide 
regional expertise and oversight. 
Outlook
After a volatile year for equity markets, 
expectations for 2011 are positive, 
although there is significant downside 
risk, particularly over financial stress in 
the Euro area, stagflation in developed 
countries and over-heating in China. 
Against this backdrop, although a 
handful of sub-sectors, particularly 
renewable energy, are struggling to 
recover, environmental markets, in 
general, are well positioned for 
sustained growth. 
I am delighted to be able to report on 
such a strong year for Impax. With over 
a decade of experience and a robust 
investment process, we are confident 
of being able to generate compelling 
returns for clients, and with our scalable 
structure and network of distribution 
partners we are in an excellent position 
to create significant further value for 
shareholders. 
Ian R Simm
7 January 2011
United States
– Pax World
– Titanium Asset Management
UK
– Collins Stewart
– Impax: Direct Sales
Asia/Australia
–  BNP Paribas Investment 
Partners
–  Mizuho/DIAM (Japan)
Continental Europe
–  BNP Paribas Investment 
Partners
–  ASN Bank
International distribution network
Chief Executive’s Report continued Impax Asset Management Group plc
Annual Report and Accounts 2010
09
Directors’ Profiles
Directors’ Profiles
Keith Falconer
Chairman
Keith Falconer, aged 55, is Chairman of 
Impax Asset Management Group plc. 
He joined the Group in January 2004. 
After qualifying as a Chartered 
Accountant in 1979, he joined Martin 
Currie, the independent Edinburgh-
based investment firm. The first part 
of his career was spent managing 
portfolios on behalf of institutional 
clients. Subsequently, he became 
the Managing Director of sales and 
marketing. He retired from Martin Currie 
at the end of 2003 and is now also 
Chairman of Aberdeen New Thai 
Investment Trust plc and a number of 
other companies.
Ian Simm
Chief Executive
Ian Simm, aged 44, is Chief Executive of 
Impax Asset Management Group plc 
and Managing Director of Impax Asset 
Management Limited (“IAM”). Prior to 
joining Impax in 1996 he was a project 
manager at McKinsey & Co. in the 
Netherlands, where he advised clients 
on strategies in environmentally sensitive 
industries, including energy, waste 
management and the automotive 
sector. Ian established Impax’s asset 
management business in 1998. He 
graduated with a first class physics 
degree from Cambridge University and 
has a Master’s in Public Administration 
from Harvard University. 
Peter Gibbs
Non-Executive Director
Peter Gibbs, aged 52, is a Non-Executive 
Director of Impax Asset Management 
Group plc. Having begun his career at 
Brown Shipley, he joined Bankers Trust 
in 1985 as a Senior Portfolio Manager. 
In 1989 he joined Mercury Asset 
Management (“MAM”) where he rose 
to become Head of the International 
Equities Division. Following the 
acquisition of MAM by Merrill Lynch, 
he was appointed co-Head of Equity 
Assets worldwide. In 2003 he became 
Chief Investment Officer and Head of 
Region for Merrill Lynch’s Investment 
Management activities outside the US. 
Peter was a Non-Executive Director of 
Bridgewell Group plc between June 
2006 and August 2007 and Chairman of 
Turquoise Services Limited until 2010. 
He is currently a Director of Evolution 
Group plc, UK Financial Investments Ltd 
(“UKFI”), Intermediate Capital Group plc 
and Merrill Lynch (UK) Pension Plan 
Trustees Limited.
Mark White
Non-Executive Director
Mark White, aged 55, is a Non-Executive 
Director of Impax Asset Management 
Group plc. He is the General Manager of 
LGT Capital Partners (UK) Ltd following 
LGT Capital Partners’ acquisition of 
KGR Capital. From 2001 to 2005, he 
was Chief Executive Officer (“CEO”) of 
JPMorgan Fleming Asset Management 
(UK) Ltd and was responsible for their 
institutional business internationally. 
Prior to that, he was CEO of Jardine 
Fleming Asset Management in Hong 
Kong and CEO of Chase Fleming Asset 
Management (UK) Ltd in London. He is 
a past Chairman of the Hong Kong 
Investment Funds Association and the 
HK SFC Advisory Committee on Unit 
Trusts. He is also a Non-Executive 
Director of Ellis Brady Absolute Return 
Fund and F&C Global Smaller 
Companies plc.
Guy de Froment
Non-Executive Director
Guy de Froment, aged 60, is a Non-
Executive Director of Impax Asset 
Management Group plc. He was 
previously Vice Chairman of BNP 
Paribas Asset Management and joint 
CEO responsible for Sales and 
Marketing. From 1997 to 2000, he held 
the position of Chairman and CEO of 
Paribas Asset Management. Prior to 
that he worked for Barclays as Head 
of Continental European Asset 
Management, having previously spent 
24 years in the Indosuez Group during 
which time he was Chief Executive of 
W. I. Carr and CEO of Indosuez Asset 
Management. Guy is a graduate of the 
Ecole des Hautes Etudes Commerciales 
(HEC Paris).
Vince O’Brien
Non-Executive Director
Vincent O’Brien, aged 52, is a Non-
Executive Director of Impax Asset 
Management Group plc. He is currently 
a Director of Montagu Private Equity and 
has worked in the private equity industry 
for over 20 years. Originally qualifying as 
a Chartered Accountant with Coopers 
and Lybrand he joined Montagu Private 
Equity in 1993. Vince is a former 
Chairman of the BVCA and served on 
its Council for seven years. Impax Asset Management Group plc
Annual Report and Accounts 2010
10
Senior Personnel
Bruce Jenkyn-Jones
Bruce Jenkyn-Jones, aged 45, is a 
Director of Impax Asset Management 
Ltd (“IAM”) and Managing Director 
for the Listed Equity business. He 
has 19 years’ experience working in 
environmental markets. Prior to joining 
Impax in 1999 he was a utilities analyst 
with BT Alex Brown and before that a 
Senior Consultant at Environmental 
Resources Management Ltd. Bruce is a 
graduate of Oxford University and has a 
Master’s in Environmental Technology 
from Imperial College and an MBA from 
IESE (Barcelona). 
Peter Rossbach
Peter Rossbach, aged 52, is a Director 
of IAM and Managing Director for the 
Private Equity team that manages Impax 
New Energy Investors and Impax New 
Energy Investors II. From 1997 to 2000, 
he was Senior Investment Officer at AMI 
Asset Management, a private equity 
investment fund specialising in the utility 
sector. Before AMI, he held positions as 
senior investment adviser to EBRD, Vice 
President of Project Finance at Mitsui 
Bank in New York, and within the energy 
project finance teams at Catalyst Energy, 
Lowrey Lazard and at Standard and 
Poor’s utility debt ratings services in 
New York. Peter holds both a Bachelor’s 
degree and a Master’s in Public Policy 
from Harvard University.
Nigel Taunt
Nigel Taunt, aged 57, is a Director of 
IAM and Managing Director for Impax’s 
venture capital activities. Nigel qualified 
as a Chartered Accountant in 1977 and, 
before moving into corporate finance 
and investment management, joined the 
group as Finance Director in January 
2002. From 1992 to 1998 he was Finance 
Director of Yorkshire Environmental 
(“YE”) and was a Director of several 
other water and renewable energy 
businesses within Kelda Group plc. 
During this period he led many 
successful acquisition and divestment 
projects as YE grew substantially in key 
sectors, particularly waste management, 
environmental laboratories and 
renewable energy. 
 
Charlie Ridge
Charlie Ridge, aged 46, is a Director of 
IAM and Chief Financial Officer of Impax 
Asset Management Group plc. Charlie 
has worked across financial services 
for more than 20 years, holding senior 
management positions with a number of 
international blue chip investment banks. 
Charlie joined Impax from Deutsche 
Bank, where he was a Managing Director 
within the Finance Division. He most 
recently served as UK Asset and Wealth 
Management Chief Financial Officer, 
having previously used his technical 
expertise in various financial and market 
risk related roles for the Global Markets 
Division. Charlie has a degree in 
Engineering Science from Durham 
University and qualified as a Chartered 
Accountant at Ernst & Young.  Impax Asset Management Group plc
Annual Report and Accounts 2010
11
Senior Personnel
Officers and Advisers
Officers and Advisers
Directors  J Keith R Falconer (Chairman)
  Ian R Simm (Chief Executive)
  Guy de Froment (Non-Executive)
  Peter J Gibbs (Non-Executive) 
  Vincent O’Brien (Non-Executive)
  Mark B E White (Non-Executive)
  
Secretary  Michael B Knight
  
Registered Office  Mezzanine Floor
  Pegasus House
  37–43 Sackville Street
  London
  W1S 3EH
  
Auditors  KPMG Audit Plc
  15 Canada Square
  London
  E14 5GL
  
Bankers   The Royal Bank of Scotland Group plc
  3rd Floor
  280 Bishopsgate
  London
  EC2M 4RB
  
Registrars  Capita Registrars 
  Northern House
  Woodsome Park 
  Fenay Bridge
  Huddersfield 
  HD8 0GA
  
Nominated Adviser  Execution Noble
and Broker  10 Paternoster Square
  London
  EC4M 7AL
  
Solicitors  Stephenson Harwood
  One St Paul’s Churchyard
  London
  EC4M 8SH Impax Asset Management Group plc
Annual Report and Accounts 2010
12
Directors’ Report
For the Year Ended 30 September 2010
The Directors present their Report and the financial statements 
for the year ended 30 September 2010.
Principal activities 
The principal activity of the Group during the year was the 
provision of investment services to funds specialising in the 
environmental markets sector. The Group’s activities are both 
authorised and regulated by the Financial Services Authority. 
The principal activity of the Company was that of a 
holding company.
Review of business
The review of business is contained in the Chairman’s 
Statement and Chief Executive’s Report.
The Directors consider assets under management (“AUM”), 
revenue and profitability to be the key performance indicators 
of the Group. Revenue for the year was £15,339,000 (2009: 
£10,391,000) and profit before tax was £5,177,000 (2009 
restated: £2,473,000). AUM grew from £1,263 million at 30 
September 2009 to £1,823 million at 30 September 2010.
Results and dividends 
The profit for the year after taxation was £3,799,000 (2009: 
restated £2,281,000). 
The Directors propose a dividend of 0.60p per share for the 
year ended 30 September 2010 (2009: 0.40p per share, 
totalling £435,000). The dividend will be submitted for formal 
approval at the Annual General Meeting to be held on 2 March 
2011. These financial statements do not reflect this dividend 
payable, which will be accounted for in shareholders’ equity as 
an appropriation of retained earnings in the year ended 30 
September 2011.
The dividend for the year ended 30 September 2009 was paid 
on 11 February 2010, being 0.40p per share. The trustees of 
the Employee Benefit Trust waived their rights to part of this 
dividend, leading to a total dividend payment of £435,000. This 
payment is reflected in the Statements of Changes in Equity.
Risk assessment
The principal risks that the Group faces are described below. 
Further information on financial risk is given in note 24 to the 
financial statements.
Liquidity and cash flow risk 
The Group’s approach to managing this risk is to ensure 
that it has sufficient liquidity to meet liabilities when due 
under both normal and stressed conditions and to meet 
commitments to the private equity funds and regulatory 
requirements. The Group produces cash flow forecasts 
covering a twelve month period. The Group’s management 
and Board review these forecasts. 
Interest rate risk
The Group has interest bearing assets including cash balances 
that earn interest at a floating rate and a loan note earning 
interest at a fixed rate. Interest rate fluctuations do not have a 
significant impact on the Group.
Currency risk
A significant amount of the Group’s income is denominated in 
foreign currencies. The strategy of the Group for the year 
ended 30 September 2010 has been to convert earned income 
back to Sterling whilst future income streams have been left 
unhedged. Going forward the Group’s strategy is to put in 
place hedges where there is sufficient predictability over 
inflows to allow for an effective and efficient hedge. The 
amount of the Group’s expenses denominated in foreign 
currencies is minimal.
A proportion of the Group’s assets and liabilities are 
denominated in foreign currency. The Group also owns a small 
number of minor subsidiaries denominated in foreign currency. 
Exchange differences that arise on consolidation are taken to 
the exchange translation reserve.
Market risk
The Group’s Listed Equity business charges management fees 
based on assets under management and is therefore exposed 
to market risk. The Group has chosen not to hedge this risk.
The Group seeds investments in its own listed equity funds 
in order to build a track record to market those funds more 
effectively and is therefore directly exposed to the market 
performance of the funds. The Group attempts to mitigate this 
risk through the use of hedging instruments where appropriate 
and intends to divest these investments as commercial and 
market conditions allow.
The Group also invests in its own private equity funds and is 
therefore exposed to the performance of these funds.
Financial regulations
The Group’s operations are subject to financial regulations 
including minimum capital requirements and compliance 
procedures in each of the jurisdictions in which it operates. 
The Group seeks to manage the risks associated with these 
regulations by ensuring close monitoring of compliance with 
the regulations and by tracking proposed changes and 
reacting immediately when changes are required. The Group 
has a dedicated Compliance Officer.
Key employees
The success of the Group depends on the support and 
experience of its key employees and in particular senior 
managers and fund managers. The loss of key employees 
could have a material adverse effect on its result or operations. 
The Group seeks to manage this risk by offering competitive 
remuneration packages, including share schemes and share of 
carry in private equity funds, and by creating a supportive and 
enjoyable working environment. Impax Asset Management Group plc
Annual Report and Accounts 2010
13
Directors’ Report
Operational risks
The Group has established a control framework so that the 
risk of financial loss to the Group through operational failure 
is minimised. As part of this the Group is currently undergoing 
an exercise to achieve “SAS 70” certification of its Listed 
Equity business.
Furthermore the Group has put in place measures to minimise 
and manage possible risks of disruption to its business and to 
ensure the safety of its staff. This plan has been put in place 
to manage its strategic and operational business risks during 
emergencies and is aimed at bringing together particular 
responses such as IT disaster recovery, contingency plans, 
off-site storage of records, data back-up and recovery 
procedures, evacuation procedures and customer/staff 
communications.
The Group’s insurance policies are reviewed each year prior to 
policy renewal.
Creditor payment policy
The Group seeks to maintain good terms with all of its trading 
partners. In particular, it is the Group’s policy to agree 
appropriate terms and conditions for its transactions with 
suppliers and, provided the supplier has complied with its 
obligations, to abide by the terms of payment agreed. Trade 
creditor days of the Group for the year ended 30 September 
2010 were 12 (2009: 14).
Directors and their interest in shares
The Directors of the Company during the year and at the date 
of this report are set out below. The Directors’ interests and 
those of their connected persons in the ordinary shares of the 
Company, all of which are beneficial, at 30 September 2010 
and 30 September 2009 were:
 Ordinary shares
  30 September  30 September 
  2010 2009
J Keith R Falconer*  10,489,290 10,489,290
Ian R Simm*  5,486,261 5,486,261
Peter J Gibbs   200,000 200,000
Mark B E White   300,000 200,000
Vince O’Brien   10,000  –
Guy de Froment   – –
* Includes vested shares granted by the Impax Group Employee Benefit Trust.
There have been no changes to the above holdings since 
30 September 2010.
Ian Simm has a 5.88 per cent interest in the capital of Impax 
Carried Interest Partner LP, and a 5 per cent interest in the 
capital of Impax Carried Interest Partner II LP, entities in which 
the Company holds an investment.
The Directors and their families are potential beneficiaries of 
the Impax Group Employee Benefit Trust (“EBT”), which is 
described in further detail in note 26. At 30 September 2010 
the Impax EBT held 16,018,781 shares that have vested and as 
a result have transferred to sub funds of the Trust (2009: 
16,320,746 shares).
Substantial share interests
The following interests in three per cent or more of the issued 
ordinary share capital have been notified to the Company as at 
7 January 2011:
  Number Percentage
BNP Paribas Investment Partners  32,220,000 28.2%
J Keith R Falconer*  10,489,290 9.2%
Rathbone Investment Managers  7,453,150 6.5%
Impax Group Employee Benefit Trust**  5,888,273 5.1%
Ian R Simm*  5,486,261 4.8%
DIAM Company  5,474,955 4.8%
UBS Wealth Management UK  5,035,850 4.4%
Bruce Jenkyn-Jones*  4,159,420 3.6%
*  Includes shares within sub-funds of the Employee Benefit Trust from which the 
individual may benefit .
**  In addition to the interest disclosed above, the EBT has a legal interest in a further 
16,018,781 shares which have transferred to sub funds from which the individuals 
may benefit.
Directors’ responsibilities
The Directors are responsible for preparing the Annual Report 
and the financial statements in accordance with applicable 
laws and regulations.
Company law requires the Directors to prepare financial 
statements for each financial year. Under that law the Directors 
have prepared the consolidated financial statements and the 
Parent Company financial statements in accordance with 
International Financial Reporting Standards (“IFRS”) as 
adopted by the European Union. Under company law the 
Directors must not approve the financial statements unless 
they are satisfied that they give a true and fair view of the 
assets, liabilities, financial position and profit or loss in the 
case of both the Company and all the undertakings included 
within the consolidation. In preparing these financial 
statements, the Directors are required to:
select suitable accounting policies and then apply them  >
consistently;
make judgements and accounting estimates that are  >
reasonable and prudent;
state whether applicable IFRSs as adopted by the European  >
Union have been followed, subject to any material 
departures disclosed and explained in the financial 
statements; and
prepare the financial statements on the going concern basis  >
unless it is inappropriate to presume that the Group will 
continue in business.
The Directors are responsible for keeping adequate accounting 
records that are sufficient to show and explain the Company’s 
transactions and disclose with reasonable accuracy at any 
time the financial position of the Company and the Group and 
enable them to ensure that the financial statements comply 
with the Companies Act 2006. They are also responsible for  Impax Asset Management Group plc
Annual Report and Accounts 2010
14
Directors’ Report continued
safeguarding the assets of the Company and the Group and 
hence for taking reasonable steps for the prevention and 
detection of fraud and other irregularities.
The Directors are responsible for the maintenance and integrity 
of the Company’s website. Legislation in the UK governing the 
preparation and dissemination of financial statements may 
differ from legislation in other jurisdictions.
As permitted by the Company’s Articles of Association, the 
Company has maintained Qualifying Third-Party Indemnity 
Provisions (as defined under relevant legislation) for the benefit 
of the Company’s Directors throughout the period.
Corporate governance
The Group is committed to maintaining good standards 
of Corporate Governance. As an AIM quoted company, 
compliance with the Finance Reporting Council’s UK 
Corporate Governance Code (“the Code”) is not mandatory. 
However the Board seeks to comply with the principles of the 
Code in so far as appropriate to the Group’s size and 
complexity. This report describes how the Company has 
applied the principles throughout the year.
Directors
The Board of Directors (“the Board”) has overall responsibility 
for the Group.
The Board has consisted of a Non-Executive Chairman, four 
Non-Executive Directors and the Chief Executive during the 
year. Details of the current Board members are given on 
page 9 of this report. Throughout the year the positions of 
Chairman and Chief Executive were held by separate 
individuals. There is a clear division of responsibilities between 
the Chairman and Chief Executive. The Board has appointed 
one of the Non-Executive Directors (Peter Gibbs) to act as the 
Senior Independent Director. The Board considers that three 
of the Non-Executive Directors (Peter Gibbs, Mark White and 
Vince O’Brien) are independent as envisaged by the Code. 
Guy de Froment is not considered to be independent as he 
represents a significant shareholder. The Chairman is also 
not considered to be independent by nature of his significant 
shareholding and past service to the Group. The Non-
Executive Directors and Chairman all have or have had senior 
executive experience and offer insightful judgement on Board 
matters. The Non-Executive Directors do not participate in 
any bonus schemes or share ownership schemes and their 
appointments are non-pensionable.
There is a rigorous procedure to appoint new Directors to the 
Board which is led by the Chairman. 
The Board met six times in the year to consider strategic 
development and to review trading results and operational and 
business issues. 
All Directors receive detailed Board papers and reports one 
week prior to each Board meeting. There is provision for Board 
members to solicit professional advice on Board matters at the 
Company’s expense.
The Board has carried out a formal evaluation of its own 
performance and individual Directors which was led by the 
Chairman. The Board also completed an evaluation of the 
Chairman’s performance which was led by the Senior 
Independent Director. The evaluations confirmed a high rating 
for performance.
All Directors are subject to reappointment by shareholders at 
the first opportunity after their appointment and thereafter at 
intervals of no more than three years.
Internal control
The Board has overall responsibility for the Group’s system of 
internal controls including financial, operational, compliance 
and risk management controls. 
The Group’s fund management activities are regulated by the 
Financial Services Authority and the Board has adopted 
procedures and controls designed to ensure its obligations 
are met.
Audit Committee and auditors
The Audit Committee provides a link between the Board and 
the Company’s auditors on matters falling within the scope of 
the Group’s audit. The Audit Committee is comprised of the 
following Non-Executive Directors: Mark White (Chairman), 
Peter Gibbs, Guy de Froment and Vince O’Brien. The Audit 
Committee meets at least twice a year and more frequently 
as and when appropriate.
The Audit Committee’s responsibilities include:
the implementation of new accounting standards and  >
policies;
monitoring the integrity of the financial statements and  >
formal announcements relating to the Company’s and 
Group’s financial performance;
monitoring of the internal financial control procedures; >
making recommendations to the Board in relation to the  >
appointment, re-appointment and removal of the external 
auditors and to approve the remuneration and terms of 
engagement of the external auditors;
reviewing and monitoring the external auditors’  >
independence and objectivity and the effectiveness of the 
audit process and;
ensuring the objectivity and independence of the external  >
auditor by acting as primary contact with the external 
auditors, meeting the external auditors without the presence 
of management where considered necessary and receiving 
all reports directly from the external auditors. Impax Asset Management Group plc
Annual Report and Accounts 2010
15
Directors’ Report
Details of fees paid to the Company’s auditors are shown in 
note 3 to the financial statements. In the opinion of the Board, 
none of the non-audit services provided caused any concern 
as to the auditors’ independence or objectivity. To ensure that 
the independence and objectivity of the auditors is maintained, 
the Audit Committee monitors the scope of all work performed.
Dialogue with institutional shareholders
The Company reports formally to shareholders twice a year, 
when its half-year and full-year results are announced and an 
Interim Statement and Annual Report are sent to shareholders. 
The Annual Report includes notice of the Annual General 
Meeting of the Company at which a presentation is given and 
Directors are available to take questions, both formally during 
the meeting and informally after the meeting. The Chairman, 
Chief Executive and Senior Independent Director are available 
for dialogue with major shareholders on the Company’s plans 
and objectives and from time to time will meet with them.
Environmental policy
The Group attaches great importance to its environmental 
performance. In addition to ensuring that it is making the most 
of commercial opportunities within the environmental markets 
sector, the Group is committed to maintaining and improving 
the sustainability of its working practices. 
The Group is focused on minimising environmental impact in 
three areas of its operations:
Energy consumption: the Group has an energy efficiency  >
policy covering inter alia lighting, heating and computers;
Travel: the Group encourages staff to minimise travel and to  >
select public transport where appropriate, and to utilise the 
Group’s cycle scheme; and
Paper and materials usage: the Group has a system to  >
recover office paper and encourages staff to avoid wastage 
of other materials.
Remuneration report 
The Remuneration Committee is comprised of the four 
Non-Executive Directors: Peter Gibbs (Chairman), Mark White, 
Guy de Froment and Vince O’Brien. The Remuneration 
Committee meets at least four times each year and more 
frequently as and when appropriate. 
The purpose of the Remuneration Committee is to ensure that 
the Chief Executive and other senior employees are fairly 
rewarded for their individual contribution to the overall 
performance of the Group and will respond to this requirement 
in the way that meets the best interest of shareholders.
Emoluments
Total Directors’ emoluments for the year were £811,457 (2009: 
£635,205) and details of each Director’s remuneration are 
shown in note 21 to the financial statements. 
Policy on Chief Executive and senior employees’ 
remuneration
The remuneration and terms and conditions of service of the 
Directors are determined by the Board, based on 
recommendations made by the Remuneration Committee. The 
Board’s policy is to pay competitive salaries having regard to 
the Directors’ experience, the size and complexity of the job 
and any special factors which may arise from time to time. 
There are potentially four main elements of the remuneration 
packages for the Chief Executive and senior employees.
(i) Basic salary and benefits in kind
Basic salaries are recommended to the Board by the 
Remuneration Committee taking into account the 
performance of the individual and the rate for similar 
positions in comparable companies. Benefits in kind 
include income protection, critical illness cover/insurance, 
life assurance and private medical insurance.
(ii) Discretionary bonus
The Group operates a discretionary bonus scheme. The bonus 
is determined based on the Group’s profitability and thereafter 
on the profitability of the relevant area where the employee 
works and on the individual’s personal performance.
(iii) Share-based payment
The Group has a share-based payment scheme operated via 
an Employee Benefit Trust. The current scheme has a share 
price and a total return condition. If the conditions are met, 
shares can be granted to Group employees including the 
Chief Executive. The allocation of the shares to individuals 
will be recommended to the Board by the Remuneration 
Committee based on the performance of the individual 
and their contribution to the Group. The shares will vest on 
30 September 2012 subject to continued employment of 
the individual. Further details of the scheme are provided in 
note 26 to the financial statements.
The Group has a further share scheme under which zero 
strike price options were awarded to certain senior employees 
during the year. Further details are provided in note 26 to the 
financial statements.
(iv) Pensions
The Group pays a defined contribution to the pension scheme 
of the Chief Executive and other employees. The individual 
pension schemes are private and their assets are held 
separately from those of the Group.
In addition the Chief Executive and certain senior employees 
have been awarded interests in the Impax Carried Interest 
Partner LP and Impax Carried Interest Partner II LP. These 
partnerships will receive payments from the Group’s private 
equity funds depending on the fund’s performance. Impax Asset Management Group plc
Annual Report and Accounts 2010
16
Directors’ Report continued
Service contracts
The Chief Executive is employed under a contract requiring one 
year’s notice from either party. The Chairman and Non-Executive 
Directors each receive payments under appointment letters which 
are terminable by up to six months’ notice from either party.
Policy on Non-Executive Directors’ remuneration
The Chairman and Non-Executive Directors each receive a fee for 
their services. The fee is approved by the Board, mindful of the 
individuals time commitment and responsibilities and of current 
market rates for comparable organisations and appointments. 
The Non-Executive Directors and the Chairman are reimbursed 
for their travelling and other minor expenses incurred.
Going concern
After making appropriate enquiries the Directors have a 
reasonable expectation that the Company and the Group 
have adequate resources to continue in operational existence 
for the forseeable future. Accordingly they continue to adopt 
the going concern basis in preparing the financial statements.
Statement of disclosure to auditor
Each of the persons who is a Director at the date of approval of 
this Annual Report confirms that:
(a) so far as the Director is aware, there is no relevant audit 
information of which the Group’s auditors are unaware, and
(b) the Director has taken all the steps that he ought to have 
taken as a Director in order to make himself aware of any 
relevant audit information and to establish that the Group’s 
auditors are aware of that information.
During the year the Directors appointed KPMG Audit Plc 
as auditors to replace Mazars LLP following a thorough 
selection process.
In accordance with section 489 (2) of the Companies Act 
2006, a resolution proposing that the Company’s auditors, 
KPMG Audit Plc, be re-appointed will be put to the Annual 
General Meeting. 
By order of the Board
Michael B Knight
Company Secretary
7 January 2011
Registered office:
Mezzanine Floor
Pegasus House
37-43 Sackville Street
London 
W1S 3EH Impax Asset Management Group plc
Annual Report and Accounts 2010
17
Independent
Auditors’ Report
Independent Auditors’ Report to the Members 
of Impax Asset Management Group plc 
We have audited the financial statements of Impax Asset Management Group plc for the year ended 30 September 2010 which 
comprise the Consolidated Statement of Comprehensive Income, the Consolidated and Company Statements of Changes in 
Equity, the Consolidated and Company Statements of Financial Position and the Consolidated and Company Statements of 
Cash Flows and the related notes set out on pages 18–52. The financial reporting framework that has been applied in their 
preparation is applicable law and International Financial Reporting Standards (“IFRSs”) as adopted by the European Union and, 
as regards the Parent Company financial statements, as applied in accordance with the provisions of the Companies Act 2006.
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 
2006. Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to 
state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume 
responsibility to anyone other than the Company and the Company’s members, as a body, for our audit work, for this report, or 
for the opinions we have formed.
Respective responsibilities of Directors and Auditors
As explained more fully in the Directors’ Responsibilities Statement set out on pages 13–14, the Directors are responsible for the 
preparation of the financial statements and for being satisfied that they give a true and fair view. 
Our responsibility is to audit the financial statements in accordance with applicable law and International Standards on 
Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s (“APB’s”) Ethical Standards 
for Auditors. 
Scope of the audit of the financial statements
A description of the scope of an audit of financial statements is provided on the APB’s website at www.frc.org.uk/apb/scope/UKNP .
Opinion on the financial statements
In our opinion:
the financial statements give a true and fair view of the state of the Group’s and of the Parent Company’s affairs as at   >
30 September 2010 and of the Group’s profit for the year then ended;
the Group financial statements have been properly prepared in accordance with IFRSs as adopted by the European Union; >
the Parent Company financial statements have been properly prepared in accordance with IFRSs as adopted by the European  >
Union and as applied in accordance with the provisions of the Companies Act 2006; and
the financial statements have been prepared in accordance with the requirements of the Companies Act 2006. >
Opinion on other matters prescribed by the Companies Act 2006
In our opinion the information given in the Directors’ Report for the financial year for which the financial statements are prepared 
is consistent with the financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you  
if in our opinion:
adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit have not been  >
received from branches not visited by us; or 
the Parent Company financial statements are not in agreement with the accounting records and returns; or  >
certain disclosures of Directors’ remuneration specified by law are not made; or >
we have not received all the information and explanations we require for our audit. >
JM Mills (Senior Statutory Auditor)
for and on behalf of:
KPMG Audit Plc, Statutory Auditor
Chartered Accountants
15 Canada Square
London
E14 5GL
7 January 2011 Impax Asset Management Group plc
Annual Report and Accounts 2010
18
Notes
2010  
 
£’000
2009  
(restated*) 
£’000 
Revenue 2 15,339 10,391
Operating costs:
  Long-term incentive scheme charges 26 (141) (552)
  Other operating costs 3 (11,371) (7,842)
Fair value gains on investments 3 326
Change in third party interest in consolidated funds 152 (112)
Profit from operations 3,982 2,211
Investment income 4 1,195 262
Profit before taxation 5,177 2,473
Taxation 5 (1,378) (192)
Profit for the year 3,799 2,281
Other comprehensive income
Exchange differences on translation of foreign operations 1 (3)
Total other comprehensive income 1 (3)
Total comprehensive income for the period attributable to equity holders of the parent 3,800 2,278
Basic earnings per share 7 3.50p 2.12p
Diluted earnings per share (restated) 7 3.49p 2.08p
* See note 1
The statement has been prepared on the basis that all operations are continuing operations.
The notes on pages 25 to 52 form part of these financial statements.
Consolidated Statement of  
Comprehensive Income
For the Year Ended 30 September 2010 Impax Asset Management Group plc
Annual Report and Accounts 2010
19
Financial Statements
2010 2009
Notes £’000 £’000 £’000
(restated*) 
£’000 
ASSETS
Non-current assets
Goodwill 9 1,629 1,629
Intangible assets 10 76 143
Property, plant and equipment 11 297 422
Other financial assets 12 – 792
Investments 13 16 14
Trade and other receivables 14 – 65
Deferred tax asset 5 – 364
2,018 3,429
Current assets
Trade and other receivables 14 3,919 2,716
Other financial assets 12 2,242 452
Investments 15 7,007 3,927
Current tax asset 217 22
Cash and cash equivalents 29 11,729 10,284
25,114 17,401
TOTAL ASSETS 27,132 20,830
EQUITY AND LIABILITIES
Equity
Ordinary shares 18 1,156 1,156
Share premium 19 78 78
Exchange translation reserve (156) (157)
Own shares 19 (59) (59)
Treasury shares 19 (453) –
Retained earnings 16,337 12,832
TOTAL EQUITY 16,903 13,850
Current liabilities
Trade and other payables 16 7,128 4,610
Third party interest in consolidated funds 17 1,506 1,686
Short-term borrowings 29 648 684
Current tax liability 142 –
Deferred tax liability 5 805 –
TOTAL LIABILITIES 10,229 6,980
TOTAL EQUITY AND LIABILITIES 27,132 20,830
* See note 1
Authorised for issue and approved by the Board on 7 January 2011. The notes on pages 25 to 52 form part of these  
financial statements.
Ian R Simm
Chief Executive
Consolidated Statement of Financial Position  
As at 30 September 2010 Impax Asset Management Group plc
Annual Report and Accounts 2010
20
2010 2009
Notes £’000 £’000 £’000 £’000
ASSETS
Non-current assets
Property, plant and equipment 11 297 422
Investments 13 6,036 6,181
Trade and other receivables 14 1,537 1,083
Deferred tax asset 5 207 306
8,077 7,992
Current assets
Trade and other receivables 14 404 296
Investments 15 2,655 1,793
Cash and cash equivalents 29 3,466 2,721
6,525 4,810
TOTAL ASSETS 14,602 12,802
EQUITY AND LIABILITIES
Equity
Ordinary shares 18 1,156 1,156
Share premium 19 78 78
Own shares 19 (59) (59)
Treasury shares 19 (453) –
Retained earnings 6,257 6,661
TOTAL EQUITY 6,979 7,836
Current liabilities
Trade and other payables 16 7,623 4,966
TOTAL LIABILITIES 7,623 4,966
TOTAL EQUITY AND LIABILITIES 14,602 12,802
Authorised for issue and approved by the board on 7 January 2011. The notes on pages 25 to 52 form part of these  
financial statements.
Ian R Simm
Chief Executive
Company Statement of Financial Position 
As at 30 September 2010 Impax Asset Management Group plc
Annual Report and Accounts 2010
21
Financial Statements
Note
Share 
capital 
£’000
Share 
premium 
£’000
Exchange 
translation 
reserve  
£’000
Own  
shares 
£’000
Treasury 
shares 
£’000
Retained 
earnings 
£’000
Minority 
interest 
£’000
Total  
£’000
Balance at 1 October 2008 as 
previously reported 1,156 78 (154) (78) – 10,395 1,165 12,562
Prior year adjustment – – – – – – (1,165) (1,165)
As at 1 October 2008  
as restated 1,156 78 (154) (78) – 10,395 – 11,397
Dividends paid – – – – – (377) – (377)
Long-term incentive  
scheme charge 26 – – – – – 552 – 552
Exchange differences  
on consolidation – – (3) – – – – (3)
Profit for the year – – – – – 2,281 – 2,281
Shares vested to employees from 
Employee Benefit Trust – – – 19 – (19) – –
As at 30 September 2009 1,156 78 (157) (59) – 12,832 – 13,850
Dividends paid 8 – – – – – (435) – (435)
Share buyback 19 – – – – (453) – – (453)
Long-term incentive  
scheme charge 26 – – – – – 141 – 141
Exchange differences  
on consolidation – – 1 – – – – 1
Profit for the year – – – – – 3,799 – 3,799
As at 30 September 2010 1,156 78 (156) (59) (453) 16,337 – 16,903
The notes on pages 25 to 52 form part of these financial statements.
Own shares relate to the holding of 5,888,273 (2009: 5,886,308) unallocated and unvested ordinary shares in the Company by the 
EBT, representing 5.1 per cent (2009: 5.1 per cent) of the ordinary shares in issue at 30 September 2010.
During the period the Company purchased 1,240,000 of its own shares and transferred them to Treasury. 
Consolidated Statement of Changes in Equity
For the Year Ended 30 September 2010 Impax Asset Management Group plc
Annual Report and Accounts 2010
22
Company Statement of Changes in Equity
For the Year Ended 30 September 2010
Note
Share 
capital 
£’000
Share 
premium 
£’000
Own  
shares 
£’000
Treasury 
shares 
£’000
Retained 
earnings 
£’000
Total  
£’000
As at 1 October 2008 1,156 78 (78) – 5,104 6,260
Long-term incentive scheme charge 26 – – – – 552 552
Profit for the year – – – – 1,401 1,401
Dividends paid – – – – (377) (377)
Shares vested to employees from Employee Benefit Trust – – 19 – (19) –
As at 30 September 2009 1,156 78 (59) – 6,661 7,836
Long-term incentive scheme charge 26 – – – – 141 141
Loss for the year – – – – (110) (110)
Dividends paid 8 – – – – (435) (435)
Share buyback 19 – – – (453) – (453)
As at 30 September 2010 1,156 78 (59) (453) 6,257 6,979
The notes on pages 25 to 52 form part of these financial statements.
Own shares relate to the holding of 5,888,273 (2009: 5,886,308) unallocated and unvested ordinary shares in the Company by the 
EBT, representing 5.1 per cent (2009: 5.1 per cent) of the ordinary shares in issue at 30 September 2010.
During the period the Company purchased 1,240,000 of its own shares and transferred them to Treasury. Impax Asset Management Group plc
Annual Report and Accounts 2010
23
Financial Statements
Consolidated Statement of Cash Flows
For the Year Ended 30 September 2010
Note
2010 
£’000
2009  
£’000
Cash flows from operating activities
Profit from operations 3,982 2,211
Adjustments for:
Depreciation of property, plant and equipment 206 185
Amortisation of intangible assets 75 51
Fair value movements in investments (3) (326)
Long-term incentive scheme charge 141 552
Change in third party interest in consolidated fund (152) 112
Translation differences – (87)
Operating cash flows before movement in working capital 4,249 2,698
Increase in receivables (1,115) (726)
Increase/(decrease) in payables 2,559 (848)
Cash generated from operations 5,693 1,124
Corporation tax paid (261) (835)
Net cash generated from operating activities 5,432 289
Investing activities:
Interest received 56 149
Cash acquired on consolidation of investment 15 – 2,906
Proceeds on sale of investments 1,195 –
Proceeds on sale of investments – Hedge Fund 16,935 –
Purchase of investments (2,134) (289)
Purchase of investments – Hedge Fund (19,042) –
Purchase of intangible assets (8) (121)
Purchase of property, plant and equipment (82) (70)
Net cash (used by)/generated from investment activities (3,080) 2,575
Financing activities:
Dividends paid (435) (377)
Share buy back (453) –
Preference share buy back – Hedge Fund (1,885) –
Preference shares issued – Hedge Fund 1,854 –
Net cash used by financing activities (919) (377)
Net increase in cash and cash equivalents 1,433 2,487
Cash and cash equivalents at beginning of year 9,600 7,029
Effect of foreign exchange rate changes 48 84
Cash and cash equivalents at end of year 29 11,081 9,600 Impax Asset Management Group plc
Annual Report and Accounts 2010
24
Company Statement of Cash Flows
For the Year Ended 30 September 2010
Note 
2010  
£’000
2009  
£’000
Cash flows from operating activities
Profit from operations 251 1,077
Adjustments for:
Depreciation of property, plant and equipment 206 185
Fair value movements in investments 38 (326)
Long-term incentive scheme charge – 144
Operating cash flows before movement in working capital 495 1,080
Increase in receivables (562) (8)
Increase in payables 2,696 2,354
Net cash generated from operating activities 2,629 3,426
Investing activities:
Interest received 23 17
Proceeds on sale of investments 1,195 –
Purchase of investments (2,132) (289)
Purchase of property, plant and equipment (82) (70)
Net cash used by investment activities (996) (342)
Financing activities:
Dividends paid (435) (377)
Share buy back (453) –
Net cash used by financing activities (888) (377)
Net increase in cash and cash equivalents 745 2,707
Cash and cash equivalents at beginning of year 2,721 14
Cash and cash equivalents at end of year 29 3,466 2,721 Impax Asset Management Group plc
Annual Report and Accounts 2010
25
Financial Statements
1 Accounting policies
Presentation of financial statements
Impax Asset Management Group plc is a public limited company that is incorporated and domiciled in the UK, and is listed on 
the Alternative Investment Market (“AIM”). The nature of the Group’s operations and its principal activities are set out in the 
Directors’ Report on pages 12 to 16.
Basis of accounting
The financial statements have been prepared in accordance with International Financial Reporting Standards adopted for use by 
the European Union.
The financial statements have been prepared on a going concern basis under the historical cost convention, with the exception 
of the revaluation of certain investments.
The Group and Company adopted the following new standards in the year:
IAS 1 (revised) – Presentation of Financial Statements. IAS 1 (revised) has resulted in some of the titles of the financial statements 
changing. The “balance sheet” is now referred to as a “statement of financial position” and the “cash flow statement” is now a 
“statement of cash flows”. The Income Statement has been replaced by a “statement of comprehensive income”.
IFRS 8 – Operating Segments. The Group has two operating segments: “Listed equities” and “Private equity”. The results of 
these segments have been aggregated into a single reportable operating segment for the purposes of these financial statements 
because they have characteristics so similar that they can be expected to have essentially the same future prospects. These 
segments have common investors, operate under the same regulatory regimes and their distribution channels are substantially 
the same. Additionally, management allocates the resources of the Group as though there is one operating unit.
IFRS 3 – Business Combinations (2008) and IAS 27 – Consolidated and Separate Financial Statements (2008) for business 
combinations occurring in the financial year commencing 1 October 2009. All business combinations occurring on or after 
1 October 2009 are accounted for by applying the acquisition method. The change in accounting policy was applied 
prospectively and had no material impact on earnings per share.
IFRS 7 Amended – Financial Instruments: Disclosures. The amended standard requires enhanced disclosures about fair value 
measurements and liquidity risk. Amongst other things, the new disclosures:
add disclosure of any change in the method for determining fair value and the reasons for the change; >
establish a three level hierarchy for making fair value measurements: >
	 • 	 Le v el 	 1 	 – 	 q uo t ed 	 prices 	 ( unadj ust ed) 	 i n 	 act i v e 	 mark ets 	 f or 	 iden t ical 	 assets 	 or 	 l iabi l it ies .
	 • 		 Le v el 	 2 	 – 	 i nputs 	 o t her 	 t han 	 q uo t ed 	 prices 	 i ncl uded 	 w it h i n 	 Le v el 	 1 	 t ha t 	 ar e 	 obser v able 	 f or 	 t he 	 asset 	 or 	 l iabi l it y , 	 eit her 	 d ir ect ly	
(i.e. as prices) or indirectly (i.e. derived from prices).
	 • 	 Le v el 	 3 	 – 	 i nputs 	 f or 	 t he 	 asset 	 or 	 l iabi l it y 	 t hat 	 ar e 	 no t 	 based 	 on 	 obser v able 	 mark et 	 da ta 	 ( unobser v able 	 i n puts ) ;
add disclosure for each fair value measurement in the Statement of Financial Position, of which level in the hierarchy was used  >
and any transfers between levels, with additional disclosures whenever Level 3 is used including a measure of sensitivity to 
change in input data; and
add disclosure of a maturity analysis for derivative financial liabilities. >
The adoption of this standard has not had a material impact on the financial performance or position of the Group.
IFRS 2 Amended Share-based payments: This standard has been amended to clarify the definition of vesting conditions. The 
amended standard also requires a cancellation of a share-based award, whether by the entity or other parties, to be accounted 
for as an acceleration or modification of the vesting period. The adoption of this amendment has not had a material impact on the 
financial performance or position of the Group.
Notes to the Financial Statements
For the Year Ended 30 September 2010 Impax Asset Management Group plc
Annual Report and Accounts 2010
26
1 Accounting policies continued
IAS 27 Amended – Consolidated and Separate Financial Statements: Changes to IAS 27 and IFRS 3 work together such that a 
business combination leading to acquisition accounting applies only at the point where control is achieved. The amended 
standard also identified that changes in a parent’s ownership interest in a subsidiary that do not result in a loss of control are 
accounted for within shareholders’ equity. Adoption of this amended standard has had no impact on the financial performance or 
position of the Group.
The Standards which have been issued but are not yet required to be adopted are not expected to have a material impact on the 
financial performance and position of the Group.
Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and enterprises controlled by the 
Company (its subsidiaries) made up to 30 September each year. Control is achieved where the Company has the power to 
govern the financial and operating policies of a subsidiary so as to obtain benefits from its activities.
Subsidiaries are accounted for using the acquisition method of accounting whereby the Group’s results include the results of the 
acquired business from the date of acquisition.
All intra-Group transactions and balances are eliminated on consolidation.
Investments in funds in which the Group has more than 50 per cent of the share of the net assets are consolidated from the date 
that control is gained until the date that control is lost due to dilution or sale of the fund holding. The Group’s investment holding 
instrument in its consolidated fund is classified as a liability in the fund’s own financial statements. This is on the basis that the 
i nst rumen ts 	 ma y 	 be 	 r edeemed 	 b y 	 t he 	 I n v est or 	 at 	 an y 	 t i me , 	 or 	 su b ject 	 t o 	 a 	 no t ice 	 period , 	 such 	 t ha t 	 t he 	 fund 	 is 	 r eq u ir ed 	 t o 	 ut i l ise 	 its 	
assets to buy out the Investor’s share and thereby reduce the net assets of the fund; such an investment is classified as a 
puttable interest under IFRS and recorded as a liability (equal to the fair value of the fund’s assets and other liabilities). Upon 
consolidation the proportion of the fund attributable to the non-controlling interest is classified as a current liability and shown as 
“Third party interest in consolidated funds” in the Statement of Financial Position and the corresponding profit/loss attributable 
to the non-controlling interest as a “Change in third party interest in consolidated funds”.
The 	 non- con t rol l i ng 	 i n t er est 	 w as 	 pr e viously 	 classified 	 as 	 m i norit y ; 	 accord i ng ly 	 a 	 prior 	 y ear 	 ad j ust men t 	 has 	 been 	 made.
In instances where the Group acts as the Manager and General Partner of a fund in a Limited Partner structure the Group only 
receives compensation for its performance as Manager which is on market terms. Accordingly the Group does not consolidate 
these funds as it receives no ownership benefits.
The Company includes the assets and liabilities of the Employee Benefit Trust (“EBT”) within its Statement of Financial Position. 
In the event of the winding up of the Company, neither the shareholders nor the creditors would be entitled to the assets of the EBT.
Investments in associates
The Group, in common with industry standard practice, seeds new funds with its own resources in order to establish a track 
r e c o r d 	 s o 	 t h a t 	 t h e 	 f u n d s 	 m a y 	 t h en 	 b e 	 m ar k e t e d 	 t o 	 e x t e r n a l 	 i n v e s t o r s . 	 A s 	 n e w 	 i n v e s t o r s 	 j o i n 	 t h e 	 f u n d 	 t h e 	 G r o u p ’ s 	 i n t e r e s t 	 w i l l 	 d i l u t e	
and ultimately the Group may divest entirely as commercial considerations allow. Investments in associates that are held by the 
Group are carried in the Statement of Financial Position at fair value even though the Group may have significant influence over 
those entities. This treatment is permitted by IAS 28, Investment in Associates, which allows investments held by venture capital 
and similar organisations to be excluded from the scope of IAS 28, provided that those investments upon initial recognition are 
designated as fair value through profit or loss or held for trading and accounted for in accordance with IAS 39 Financial 
Instruments: Recognition and Measurement, with changes in fair value recognised in profit or loss in the period of change.
Notes to the Financial Statements continued
For the Year Ended 30 September 2010 Impax Asset Management Group plc
Annual Report and Accounts 2010
27
Financial Statements
1 Accounting policies continued
Revenue recognition
Revenue represents sales to external customers at invoiced amounts less value added tax or local taxes. Revenue is recognised 
in the Statement of Comprehensive Income as follows:
(a) Investment management, administration and advisory fees contractually receivable are recognised in the period in which the 
work is performed and the respective fees are earned. Performance fees arising upon the achievement of specified targets are 
recognised at the respective fund’s period end, when such performance fees are confirmed as receivable.
(b) Interest income is accrued on a time basis, by reference to the principal outstanding and the interest rate applicable.
(c) Other investment income, including dividends, is recognised when the right to receive payment is established.
Leases
All leases are operating leases. Rentals payable are charged to the Income Statement on a straight-line basis over the lease term. 
Benefits received and receivable as an incentive to enter into operating leases are also spread on a straight-line basis over the 
lease term.
Long-term incentive scheme charge
The fair value of employee services received in exchange for the grant of shares or share options is recognised as an expense. 
The total amount to be expensed over the performance period, from grant date to vesting date, 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 potential entitlement and all 
conditions of vesting.
Pensions
The Group and Company operate defined contribution personal pension schemes for employees. The assets of the schemes are 
held separately from those of the Group and Company in independently administered funds. Payments made in relation to the 
schemes are charged as an employee benefit expense to the Income Statement when they are due.
Taxation
Current tax is based on taxable profits for the year after all potential reliefs available have been utilised. Taxable profits differ from 
net profit as reported in the Income Statement because it excludes items that are taxable or deductible in other years and items 
that are not taxable or deductible in the current year. The Group’s liability for current tax is calculated using tax rates that have 
been enacted or substantively enacted at the Statement of Financial Position date.
Deferred tax is provided in full in respect of taxation deferred by temporary differences between the treatment of certain items for 
taxation and accounting purposes. Deferred tax assets are not recognised to the extent that their recoverability is uncertain.
The carrying amounts of deferred tax assets are reviewed at each Statement of Financial Position date and regarded as 
recoverable and therefore recognised only when, on the basis of all available evidence, it can be regarded as more likely than not 
that there will be suitable taxable profits from which the future reversal of the underlying temporary differences can be deducted.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability or the asset is realised.
Goodwill
Goodwill arising on consolidation represents the excess of the cost of acquisition over the fair value of the identifiable assets, 
l i a b i l i t i e s 	 a n d 	 c o n t i n g en t 	 l i a b i l i t i e s 	 o f 	 a 	 s u b s i d i ar y , 	 as s o c i a t e 	 o r 	 j o i n t l y 	 c o n t r o l l e d 	 en t i t y 	 a t 	 t h e 	 d a t e 	 o f 	 a c q u i s i t i o n . 	 G o o d w i l l 	 i s	
recognised as an asset and is tested for impairment annually, or on such occasions that events or changes in circumstances 
indicate that its value might be impaired.
On disposal of a subsidiary the attributable amount of goodwill is included in the determination of the profit or loss on disposal.
Positive goodwill arising on acquisitions before the date of the transition to IFRS has been retained at the previous UK GAAP 
amount and is tested for impairment annually.
Property, plant and equipment
Property, plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment losses. Impax Asset Management Group plc
Annual Report and Accounts 2010
28
1 Accounting policies continued
Depreciation is provided on a straight-line basis over the estimated useful lives shown below.
Leasehold improvements  life of the lease
Fixtures, fittings and equipment three years
Intangible fixed assets – software licences
Purchased licences are stated at cost less accumulated depreciation and any accumulated impairment losses.
Amortisation is provided on a straight-line basis over the life of the licence up to a maximum of three years.
Non-current asset investments
Group non-current asset investments are categorised as available-for-sale financial assets as they relate to trade investments 
held, are non-derivatives and are not classified in any of the other categories.
Gains and losses arising from changes in fair value are recognised directly in equity with the exception of impairment losses and 
interest calculated using the effective interest rate method, which are measured directly in profit or loss, or where it is considered 
not possible to reliably determine a fair value in which case the investments are held at cost less any impairment losses.
Dividends on investments are recognised in the Statement of Comprehensive Income when the Group’s right to receive the 
dividends are established.
Investment in subsidiaries
Investments held by the Company in subsidiary undertakings are held at cost less any provision for impairment.
Impairment of assets (excluding goodwill and financial assets)
At the Statement of Financial Position date the Group reviews the carrying amount of assets to determine whether there is any 
indication that those assets have suffered an impairment loss or if events or changes in circumstances indicate that the carrying 
value may not be recoverable. If any such indication exists, the recoverable amount of the asset is estimated in order to 
determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual 
asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the impairment loss is recognised as 
an expense.
When an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its 
recoverable amount, so that the increased carrying amount does not exceed the carrying amount that would have been 
determined had no impairment loss been recognised for the asset. A reversal of an impairment loss is recognised as income 
immediately, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss treated 
as a revaluation increase. Impairment losses relating to goodwill are not reversed.
Current asset investments
Current asset investments are categorised as financial assets at fair value through profit or loss and are designated at fair value 
through profit and loss on initial recognition or as held for trading. The investments comprise both listed investments and unlisted 
investments. The fair value of the listed investments which are traded in active markets are based on quoted market prices at the 
Statement of Financial Position date. The appropriate quoted price for investments held is the current bid price.
The fair value of the unlisted investments which are not traded in an active market is determined by using valuation techniques. 
The Group uses a variety of methods and makes assumptions that are based on market conditions existing at each reporting 
date. Valuation techniques used include the use of comparable recent arm’s length transactions, reference to other instruments 
that are substantially the same, discounted cash flow analysis and other valuation techniques commonly used by market 
participants making the maximum use of market inputs and relying as little as possible on entity-specific inputs.
Trade and other receivables
Trade and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 
loans and receivables. Trade and other receivables are initially recognised at fair value and subsequently measured at amortised 
cost using the effective interest method less provision for impairment.
Notes to the Financial Statements continued
For the Year Ended 30 September 2010 Impax Asset Management Group plc
Annual Report and Accounts 2010
29
Financial Statements
1 Accounting policies continued
Other financial assets
Other financial assets are non-derivative financial assets with fixed payments that are not quoted in an active market. They are 
included in current assets, except for maturities greater than twelve months after the end of the reporting period. These are 
classified as non-current assets. The Group’s other financial assets comprises a loan receivable balance, see note 12.
The loan receivable is recognised initially at fair value and subsequently measured at amortised cost using the effective interest 
rate method less any provision for impairment. Interest income is recognised by applying the effective interest rate and included 
within “Investment income”.
Placement fees
Placement fees incurred that are directly attributable to securing an investment management contract are deferred and 
amortised over the investment period of the related fund which is equal to five years.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, short-term deposits, liquid investments and short-term borrowings that are 
r ea d i l y 	 c o n v e r t i b l e 	 t o 	 a 	 k n o w n 	 a m o u n t 	 o f 	 c as h 	 a n d 	 ar e 	 s u b j e c t 	 t o 	 a n 	 i n s i g n i fi c a n t 	 r i s k 	 o f 	 c h a n g e s 	 i n 	 v a l u e .
Equity instruments
Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue costs.
Own shares
Company shares held by the EBT are deducted from the shareholders’ funds and classified as Own Shares until such time as 
they vest unconditionally to participating employees and their families.
Treasury shares
Equity shares of the Company acquired by the Company are deducted from shareholders funds and classified as Treasury 
shares.
Capital contribution
Charges relating to shares in the Company granted by the trustees of the EBT to employees of subsidiary undertakings are 
accounted for in the subsidiary undertaking. The charge to the subsidiary undertaking is proportionate to the number of shares 
allocated to individuals in the entity as a percentage of the total shares allocated to employees of the Group. In the Company 
financial statements the capital contribution has been recognised as an increase in the investment in subsidiaries.
Trade payables
Trade payables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest 
method, unless otherwise stated.
Other payables
The Group’s consolidated fund makes short sales in which an investment is sold in anticipation of a decline in the market value of 
that investment. Short sales are categorised as financial liabilities held at fair value through profit or loss, classified as held for 
trading and are recorded at fair value.
Foreign currencies
Foreign currency transactions of individual companies are translated at the rates ruling when they occurred. Foreign currency 
monetary assets and liabilities are translated at the rates ruling at the Statement of Financial Position date. Any differences 
are taken to the Income Statement. Exchange differences arising on long-term loans are charged to the Income Statement.
On consolidation, the results of overseas operations are translated at the average rates of exchange during the year and their 
Statements of Financial Positions are translated into Sterling at the rates of exchange ruling on the Statement of Financial 
Position date. Exchange differences that arise from translation of the opening net assets and results of foreign subsidiary 
undertakings are charged to the exchange translation reserve.
The average rate ruling in the accounting period for US Dollars was US$1.56:£1 (2009: US$1.55:£1); the rate ruling at the 
Statement of Financial Position date was US$1.58:£1 (2009: US$1.59:£1). Impax Asset Management Group plc
Annual Report and Accounts 2010
30
1 Accounting policies continued
The average rate ruling in the accounting period for Euros was €1.15: £1 (2009: €1.15: £1); the rate ruling at the Statement of 
Financial Position date was €1.16: £1 (2009: €1.09: £1).
Prior year adjustments
The 	 Group 	 has 	 made 	 t he 	 f ol lo w i ng 	 adj ust men ts 	 f or 	 t he 	 y ear 	 ended 	 30 	 Sep t ember 	 2 0 09 .
Earnings per share
T h e 	 w e i g h t e d 	 a v e r a g e 	 n u m b e r 	 o f 	 s h ar e s 	 u s e d 	 i n 	 t h e 	 c a l c u l a t i o n 	 o f 	 d i l u t e d 	 ear n i n g s 	 p e r 	 s h ar e 	 h as 	 b e en 	 a d j u s t e d 	 t o 	 e x c l u d e	
shares held in the EBT. These shares should not be included as the price condition for their award had not been met at 
3 0 	 S e p t em b e r 	 2 0 0 9 . 	 T h e 	 i m p a c t 	 o f 	 t h i s 	 a d j u s t m en t 	 i s 	 t o 	 i n c r eas e 	 d i l u t e d 	 ear n i n g s 	 p e r 	 s h ar e 	 as 	 s h o w n 	 i n 	 t h e 	 t a b l e 	 b e l o w .
The weighted average number of shares used in the calculation of diluted earnings per share as previously reported (000s) 115,582
Adjustment (000s) (5,886)
The weighted average number of shares used in the calculation of diluted earnings per share as restated (000s) 109,696
Diluted earnings per share as previously reported 1.97p
Adjustment 0.11p
Diluted earnings per share as restated 2.08p
Minority interest
Amounts previously classified in the Statement of Comprehensive Income and the Statement of Financial Position as “Minority 
Interest” have been classified as “Third party interest in consolidated funds” as they represent investments by third parties 
i n 	 put table 	 i nst rumen ts 	 as 	 defined 	 b y 	 IA S 	 3 2 	 – 	 F i nancial 	 i nst rumen ts : 	 Pr esen ta t ion. 	 The 	 e f fect 	 o f 	 t h is 	 ad j ust men t 	 on 	 t he 	
30 September 2009 comparative figures is as follows:
Effect on the  
Statement of 
Comprehensive  
Income  
Dr/(Cr)  
£’000
Effect on the  
Statement of  
Financial  
Position  
Dr/(Cr)  
£’000
Minority interest – 1,686
Third party interest in consolidated funds – (1,686)
Minority interest 112 – 
Change in third party interest in consolidated funds (112) – 
I n 	 c e r t a i n 	 o t h e r 	 ar eas 	 t h e 	 p r i o r 	 y ear 	 p r e s en t a t i o n 	 h as 	 b e en 	 a d j u s t e d 	 t o 	 c o n f o r m 	 w i t h 	 t h e 	 c u r r en t 	 y ear 	 p r e s en t a t i o n .
Critical accounting judgements and key sources of estimation uncertainty
Determining the value of unlisted investments. >
A 	 n u m b e r 	 o f 	 a cc o u n t i n g 	 e s t i m a t e s 	 a n d 	 j u d g em en t s 	 ar e 	 i n c o rp o r a t e d 	 w i t h i n 	 c u r r en t 	 as s e t 	 i n v e s t m en t s 	 i n 	 r e s p e c t 	 o f 	 t h e 	 v a l u a t i o n	
of unlisted investments. The methodology used is described in note 15.
Consolidation of managed funds. >
I n 	 d e t e r m i n i n g 	 w h e t h e r 	 m a n a g e d 	 f u n d s 	 s h o u l d 	 b e 	 c o n s o l i d a t e d 	 k e y 	 j u d g em en t s 	 i n c l u d e 	 w h e t h e r 	 r e t u r n s 	 r e c e i v e d 	 b y 	 t h e 	 G r o u p	
constitute an ownership interest and whether the Group controls the funds.
2 Analysis of revenue and assets
The Group has two operating segments: “Listed equities” and “Private equity”. The results of these segments have been 
aggregated into a single operating segment for the purposes of these financial statements because they have characteristics so 
similar that they can be expected to have essentially the same future prospects. These segments have common investors, 
operate under the same regulatory regimes and their distribution channels are substantially the same. Additionally management 
allocates the resources of the Group as though there is one operating unit.
Notes to the Financial Statements continued
For the Year Ended 30 September 2010 Impax Asset Management Group plc
Annual Report and Accounts 2010
31
Financial Statements
2 Analysis of revenue and assets continued
An analysis of revenue by type of service is shown below.
Consolidated revenue
2010 
£’000
2009 
£’000
Investment management (including private equity) 15,078 10,017
Transaction fees – 66
Advisory fees 261 308
15,339 10,391
An analysis of revenue by the location of customers is shown below.
Consolidated revenue
2010 
£’000
2009  
£’000
UK 9,594 6,018
Rest of the world 5,745 4,373
15,339 10,391
Rest of the world customer location is further analysed as shown below.
2010  
£’000
2009  
£’000
Ireland 2,136 1,692
France 1,920 928
Luxembourg 420 637
Netherlands 743 572
Other 526 544
5,745 4,373
Revenue from two of the Group’s customers individually represented more than 10 per cent of Group revenue (2009: two), 
equating to £3,636,000 and £2,127,000 (2009: £2,548,000 and £1,692,000).
All non-current assets, excluding deferred tax assets and financial instruments, are located in the UK.
3 Other operating costs
2010  
£’000
2009  
£’000
Employment costs (see note 22) 7,170 5,138
Other staff costs including contractors and Non-Executive Directors’ fees 792 524
Depreciation of property, fixtures and equipment (see note 11) 206 185
Amortisation of intangible assets (see note 10) 76 51
Auditors’ remuneration – subsidiary undertakings audit fees 60 40
Auditors’ remuneration – Parent Company audit fees 45 30
Auditors’ remuneration – tax compliance 51 32
Auditors’ remuneration – other – 34
Other costs 2,971 1,808
11,371 7,842
4 Investment income
2010  
£’000
2009  
£’000
Bank interest 9 149
Other investment income 1,186 113
1,195 262
Other investment income comprises the unwinding of the discount and reversal of impairment charges previously recorded on 
the Group’s other financial assets (see note 12). Impax Asset Management Group plc
Annual Report and Accounts 2010
32
5 Taxation
2010  
£’000
2009  
£’000
(a) Analysis of charge for the year
Current tax expense:
UK corporation tax 56 423
Adjustment in respect of previous years 1 133
57 556
Foreign taxes 152 – 
Total current tax 209 556
Deferred tax expense:
Charge/(credit) for the year 1,169 (364)
Total deferred tax 1,169 (364)
Total income tax expense 1,378 192
(b) Factors affecting the tax charge for the year
The tax assessment for the period is lower than the standard rate of corporation tax in the UK (28 per cent), (2009: lower).  
The differences are explained below.
2010  
£’000
2009  
£’000
Profit before tax 5,177 2,473
Effective tax charge at 28 per cent 1,450 692
Effects of:
Non-deductible expenses and charges 51 148
Tax effect of previously unrecognised tax losses (177) (623)
Tax effect of other previously unrecognised deferred tax assets – (158)
Adjustment in respect of previous years 1 133
Effect of higher tax rates in foreign jurisdictions 46 – 
Other 7 –
Total income tax expense 1,378 192
(c) Group deferred tax
The deferred tax asset/(liability) included in the Consolidated Statement of Financial Position is as follows:
Accelerated 
capital 
allowances  
£’000
Other  
temporary 
differences  
£’000
Excess 
management 
charges  
£’000
Income  
not yet  
taxable  
£’000
Share-based 
payment 
scheme  
£’000
Total  
£’000
As at 1 October 2008 – – – – – – 
Charge to the Income Statement 30 64 270 – – 364
As at 30 September 2009 30 64 270 – – 364
Charge/(credit) to the Income statement 24 – 74 1,110 (39) 1,169
As at 30 September 2010 6 64 196 (1,110) 39 (805)
Notes to the Financial Statements continued
For the Year Ended 30 September 2010 Impax Asset Management Group plc
Annual Report and Accounts 2010
33
Financial Statements
5 Taxation continued
The Group has tax losses of £700,000 (2009: £960,000) available for offset against future taxable profits in the UK which have 
been fully recognised because forecasts indicate these will be fully recoverable within two years. The Group also has 
unrecognised capital losses of £1,662,000.
(d) Company deferred tax
The deferred tax asset/(liability) included in the Company Statement of Financial Position is as follows:
Accelerated 
capital 
allowances  
£’000
Other  
temporary 
differences  
£’000
Excess 
management 
charges  
£’000
Total  
£’000
As at 30 September 2009 30 6 270 306
Charge/(credit) to the Income Statement 25 (1) 75 99
As at 30 September 2010 5 7 195 207
The Company has tax losses of approximately £700,000 (2009: £960,000) available for offset against future taxable profits in the 
UK which have been fully recognised because forecasts indicate these will be fully recoverable within two years. The Company 
also has unrecognised capital losses of £1,662,000.
6 Parent company
The Company has taken advantage of the exemption allowed under Section 408 of the Companies Act 2006 and has not 
presented its own Statement of Comprehensive Income in these financial statements. The Company’s net loss for the year 
amounted to £110,000 (2009: profit of £1,401,000). 
7 Earnings per share
Earnings per share (“EPS”) on a basic and diluted basis are as follows:
Profit for 
the year  
£’000
Ordinary 
shares 
in issue 
(weighted 
average) 
’000
Earnings  
per share
2010
Basic 3,799 108,632 3.50p
Diluted 3,799 108,828 3.49p
2009
Basic 2,281 107,799 2.12p
Diluted (restated*) 2,281 109,696 2.08p
The weighted average number of ordinary shares for diluted earnings per share reconciles to the weighted average number of 
ordinary shares for basic earnings per share as follows:
2010  
’000
2009  
’000
Weighted average number of ordinary shares used in the calculation of basic earnings per share 108,632 107,799
Dilutive effect of EBT and other share schemes (restated*) 196 1,897
Weighted average number of ordinary shares used in the calculation of diluted earnings per share (restated*) 108,828 109,696
* See note 1 Impax Asset Management Group plc
Annual Report and Accounts 2010
34
7 Earnings per share continued
I n 	 o r d e r 	 t o 	 s h o w 	 r e s u l t s 	 f r o m 	 o p e r a t i n g 	 a c t i v i t i e s 	 o n 	 a 	 c o m p ar a b l e 	 b as i s , 	 a n 	 a d j u s t e d 	 p r o fi t 	 a f t e r 	 t a x 	 p e r 	 s h ar e 	 h as 	 b e en	
calculated which excludes the long-term incentive scheme charge where the relevant shares are satisfied by issues of new shares:
2010  
£’000
2009  
£’000
Profit for the year 3,799 2,281
Long-term incentive scheme charge – 552
3,799 2,833
Adjusted 
profit  
for the  
year  
£’000
Ordinary 
shares 
in issue 
(weighted 
average) 
’000
Earnings  
per share
2010
Basic adjusted 3,799 108,632 3.50p
Diluted adjusted 3,799 108,828 3.49p
2009
Basic adjusted 2,833 107,799 2.63p
Diluted adjusted (restated) 2,833 109,696 2.58p
8 Dividend
The Directors propose a dividend of 0.60p per share for the year ended 30 September 2010 (2009: 0.40p per share). The dividend 
will be submitted for formal approval at the Annual General Meeting to be held on 2 March 2011. These financial statements do 
not reflect this dividend payable, which will be accounted for in shareholders’ equity as an appropriation of retained earnings in 
the year ended 30 September 2011.
The dividend for the year ended 30 September 2009 was paid on 11 February 2010, being 0.40p per share. The trustees of the 
Employee Benefit Trust waived their rights to part of this dividend, leading to a total dividend payment of £435,000. This payment 
is reflected in the Statement of Changes in Equity.
9 Goodwill
Group
Goodwill  
£’000
Cost
At 1 October 2008, 30 September 2009 and 2010 1,629
Goodwill arose on the acquisition of Impax Capital Limited on 18 June 2001.
The Group tests goodwill for impairment annually or more frequently if there are indications that goodwill may be impaired.
The Group has determined its recoverable amount on a value in use basis using discounted future cash flows, forecast over a 
five year period. Discounted future cash flows and the application of sensitivity analysis to these cash flows show that no 
impairment is required to be applied against the current carrying value of the goodwill.
The following key assumptions have been applied in the discounted cash flows:
Growth rates – The forecasts are based on revenue growth of approximately 2 per cent. For the 2009 impairment test the  >
same growth rate was used.
Discount rates – A discount rate of 10 per cent has been applied. For the 2009 impairment test a discount rate of 7 per cent  >
was used.
Consistent with the fact that the goodwill arose in respect of an acquisition made in 2001 there is significant headroom before an 
impairment would be required. As an indication, if the discount rate was increased by 3 per cent there would be no impairment charge.
Notes to the Financial Statements continued
For the Year Ended 30 September 2010 Impax Asset Management Group plc
Annual Report and Accounts 2010
35
Financial Statements
10 Intangible assets
Group
Software 
licences  
and 
implementation 
costs  
£’000
Cost
As at 1 October 2008 100
Additions 121
As at 30 September 2009 221
Additions 8
As at 30 September 2010 229
Amortisation
As at 30 September 2008 27
Charge for the year 51
As at 1 October 2009 78
Charge for the year 75
As at 30 September 2010 153
Net book value
As at 30 September 2010 76
As at 30 September 2009 143
As at 30 September 2008 73
The Company had no intangible assets.
The amortisation charge is included in operating costs. Impax Asset Management Group plc
Annual Report and Accounts 2010
36
11 Property, plant and equipment
Group
Leasehold 
improvements  
£’000
Fixtures, 
fittings and 
equipment  
£’000
Total  
£’000
Cost
As at 1 October 2008 457 274 731
Additions 3 67 70
As at 30 September 2009 460 341 801
Additions – 81 81
As at 30 September 2010 460 422 882
Depreciation
As at 1 October 2008 32 162 194
Charge for the year 131 54 185
As at 30 September 2009 163 216 379
Charge for year 182 24 206
As at 30 September 2010 345 240 585
Net book value
As at 30 September 2010 115 182 297
As at 30 September 2009 297 125 422
As at 30 September 2008 425 112 537
Company
Leasehold 
improvements 
£’000
Fixtures, 
fittings and 
equipment 
£’000
Total 
£’000
Cost
As at 1 October 2008 457 156 613
Additions 3 67 70
As at 30 September 2009 460 223 683
Additions – 81 81
As at 30 September 2010 460 304 764
Depreciation
As at 1 October 2008 32 44 76
Charge for the year 131 54 185
As at 30 September 2009 163 98 261
Charge for year 182 24 206
As at 30 September 2010 345 122 467
Net book value
As at 30 September 2010 115 182 297
As at 30 September 2009 297 125 422
As at 30 September 2008 425 112 537
Notes to the Financial Statements continued
For the Year Ended 30 September 2010 Impax Asset Management Group plc
Annual Report and Accounts 2010
37
Financial Statements
12 Other financial assets
Group
2010  
£’000
2009  
£’000
Loan receivable
Due after one year – 792
Due within one year 2,242 452
Total 2,242 1,244
The loan was to All American Oil and Gas and was issued in 2004 as part of the consideration for the disposal of the Company’s 
US subsidiary, Kern River Holdings Inc, which held and operated the Nukern oil field. The loan was originally recorded at its 
discounted value and the value was subsequently further impaired reflecting concerns over its recoverability. However, the 
outstanding balance was re-paid in full on 17 December 2010, and the impairments provision was revised.
13 Investments
Group
2010 
£’000
2009 
£’000
Cost and fair value 16 14
Company
Other 
investments 
£’000
Subsidiary 
undertakings 
£’000
Total  
£’000
At 1 October 2008 13 5,252 5,265
Capital contribution – 409 409
Reclassification of subsidiary undertaking to current asset investment – (1,310) (1,310)
Reclassification of investment to subsidiary undertaking (see note 15) – 1,817 1,817
At 30 September 2009 13 6,168 6,181
Capital contribution – 141 141
Impairment of investments – (286) (286)
At 30 September 2010 13 6,023 6,036
The principal subsidiary undertakings are:
Country of  
incorporation
Proportion  
of ordinary  
capital held Nature of business
Impax Asset Management Limited UK 100% Financial services
Impax New Energy Investors (GP) Limited UK 100% Financial services
Impax New Energy Investors II (GP) Limited UK 100% Financial services
Kern USA Inc USA 100% Holding company
Impax Absolute Return Fund Cayman Islands 53.95% Hedge fund
Investments in subsidiary undertakings are divided between interest in shares and capital contributions as follows:
2010  
£’000
2009  
£’000
Interest in shares 4,747 5,033
Capital contribution 1,276 1,135
6,023 6,168
The principal other investment for the Group and Company is in the fund Impax New Energy Investors SCA which is incorporated 
in Luxembourg. The Group and Company hold 14.24 per cent of the capital of the partnership which represents the subscription 
capital to this fund. Impax Asset Management Group plc
Annual Report and Accounts 2010
38
14 Trade and other receivables
Group  
2010  
£’000
Group  
2009  
£’000
Company  
2010  
£’000
Company  
2009  
£’000
Trade receivables 2,105 1,976 – 5
Amounts owed by Group undertakings – – 1,537 1,083
Taxation and other social security 167 – 167 –
Other receivables 191 409 56 133
Prepayments and accrued income 1,456 396 181 158
3,919 2,781 1,941 1,379
Due:
After one year – 65 1,537 1,083
Within one year 3,919 2,716 404 296
3,919 2,781 1,941 1,379
An analysis of the ageing of Group trade receivables is provided below:
Group  
2010  
£’000
Group  
2009  
£’000
Not past due 1,992 1,461
Past due but not impaired:
31–60 days 113 359
61–90 days – – 
More than 90 days – 156
2,105 1,976
15 Current asset investments
Group
Unlisted 
investments 
£’000
Listed 
investments 
£’000
Total  
£’000
At 1 October 2008 11 4,161 4,172
Additions 289 – 289
Disposal of IEL as a subsidiary – (1,166) (1,166)
Transfer of investment in IARF to subsidiary undertaking (note 13) on consolidation – (1,817) (1,817)
Acquisition of listed investments on consolidation of IARF – 2,123 2,123
Fair value movements – 326 326
At 30 September 2009 300 3,627 3,927
Additions 2,132 19,042 21,174
Repayments/disposals (61) (18,069) (18,130)
Fair value movements 148 (183) (35)
Foreign exchange (38) 109 71
At 30 September 2010 2,481 4,526 7,007
Listed investments
Listed investments held at 30 September 2010 and 2009 include those held by the consolidated subsidiary Impax Absolute 
Return Fund (IARF) and the Group’s investment in the IFSL Impax Environmental Leaders Fund (IEL). At 1 October 2008 listed 
investments included the Group’s investment in IARF and investments held by the consolidated subsidiary IEL. These listed 
investments are recorded at market value using quoted market prices that are available at the Statement of Financial Position 
date. The quoted market price is the current bid price.
Notes to the Financial Statements continued
For the Year Ended 30 September 2010 Impax Asset Management Group plc
Annual Report and Accounts 2010
39
Financial Statements
15 Current asset investments continued
Impax Absolute Return Fund (“IARF”)
On 21 May 2007, the Company made an investment of €2,200,000 (£1,507,000) in the IARF. The investment took the form of a 
subscription of 22,000 Euro Class A shares in the IARF, at €100 per share. During the current financial year the shares were 
redenominated as Sterling shares. The IARF, which is managed by a subsidiary undertaking of the Company had a total net 
asset value (“NAV”) of £3,271,000 at 30 September 2010. The Group’s investment in the IARF represents 53.95 per cent of the 
NAV at 30 September 2010 (2009: 52.98%). At 30 September 2010 and 30 September 2009 this investment has been reported as 
a subsidiary and the underlying investments consolidated. The investment has been consolidated since April 2009 when the 
Group’s ownership rose above 50 per cent.
The consolidation of IARF at April 2009, the date ownership exceeded 50 per cent, has been accounted for as follows.
Fair value  
£’000
Listed investments 2,123
Bank balances 2,906
Trade and other payables (1,526)
Third party interest in IARF (1,686)
1,817
As the deemed purchase price at acquisition was the asset value, no goodwill arose.
Impax Environmental Leaders (“IEL ”)
On 3 March 2008, the Group made an investment of £1,500,000 in the IFSL Impax Environmental Leaders Fund (“IEL ”). The 53.8 
per cent investment in IEL at 1 October 2008 was recorded as a consolidated subsidiary at 30 September 2008. During October 
2008 the holding reduced below 50 per cent to 28.11 per cent and has remained below 50 per cent and therefore has not been 
consolidated at 30 September 2009 and 30 September 2010. 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 disposal of IEL at the date ownership reduced below 50 per cent has been accounted for as follows:
Fair value  
£’000
Listed investments (1,166)
Third party interest in consolidated funds 1,166
– 
During the period the Group redeemed £1,134,000 of its investment following receipt of a notice of closure of the fund.
Unlisted investments
Unlisted investments principally represent the Group’s investment in Impax New Energy Investors LP and Impax New Energy 
Investors II LP.
The Group has a €3,756,000 commitment to Impax New Energy Investors LP, a partnership based in England and Wales (INEI). 
The addition in unlisted investments in the year includes £2,110,000 representing loan calls of €2,406,000 (64 per cent of the 
Group commitment) on this investment. The repayment represents the first distribution from INEI which is classified as a part 
repayment of the outstanding loans. This investment is recorded at fair value which is calculated as the Group’s share of the net 
assets of INEI. The principal assets of INEI, being investments made, are valued using a discounted cash flow approach. Impax Asset Management Group plc
Annual Report and Accounts 2010
40
15 Current asset investments continued
The Group has a further commitment of €2,000,000 to Impax New Energy Investors II LP (“INEI II’), a partnership based in 
England and Wales which was established on 22 March 2010. The Group’s commitment of €2,000,000 represents 1.42 per cent 
of the total commitment of all the partners in Impax New Energy Investors II LP. The additions in unlisted investments in the year 
includes £22,000 representing loan calls of €30,000 (1.5 per cent of the Group commitment). This investment is recorded at fair 
value which is considered to be cost.
Further details of the commitments of the Group are disclosed in note 25: “Commitments”.
Company
Unlisted 
investments 
£’000
Listed 
investments 
£’000
Total  
£’000
At 1 October 2008 – 1,685 1,685
Additions 289 – 289
Transfer from investment in subsidiaries – 1,310 1,310
Transfer to investments in subsidiaries – (1,817) (1,817)
Fair value movements – 326 326
At 30 September 2009 289 1,504 1,793
Additions 2,132 – 2,132
Disposals (61) (1,134) (1,195)
Fair value movements – (38) (38)
Foreign exchange (37) – (37)
At 30 September 2010 2,323 332 2,655
The unlisted investments represent the Company’s investment in INEI and INEI II (see above).
Listed investments held at 30 September 2010 and 2009 are the Company’s investment in the IFSL Impax Environmental Leaders 
Fund (see above). At 1 October 2008 they represented the Company’s investment in the IARF (see above).
16 Trade and other payables
Group  
2010  
£’000
Group  
2009  
£’000
Company  
2010  
£’000
Company  
2009  
£’000
Trade payables 30 239 6 55
Amounts owed to Group undertakings – – 6,832 4,194
Taxation and other social security 107 111 – – 
Financial liabilities held for trading 3,609 1,395 – – 
Other payables 7 205 7 7
Accruals and deferred income 3,375 2,660 778 710
7,128 4,610 7,623 4,966
The financial instruments held for trading relate to listed equity investments which have been sold short at the Statement of 
Financial Position date by IARF. The fair value has been determined by reference to the current bid price at the Statement of 
Financial Position date of the listed investments which are traded in active markets. The net gain relating to the change in the fair 
value of these investments has been recognised in the Income Statement. The Company does not hold any financial liabilities 
that are held for trading.
17 Third party interest in consolidated funds
2010  
£’000
2009  
£’000
At fair value 1,506 1,686
Third party interest in consolidated funds is representative of the net assets of the Impax Absolute Return Fund (“IARF”) which 
are not attributable to the Group. As described in note 15 “Current Asset Investments”, IARF is a subsidiary of the Group and its 
net assets and operating results are consolidated into the Group’s results at year end. The Group’s interest in the subsidiary is 
53.95 per cent at 30 September 2010 (2009: 52.98 per cent).
Notes to the Financial Statements continued
For the Year Ended 30 September 2010 Impax Asset Management Group plc
Annual Report and Accounts 2010
41
Financial Statements
18 Ordinary shares
2010  
£’000
2009  
£’000
Authorised
248,341,664 ordinary shares of 1p each 2,483 2,483
Allotted and fully paid
115,582,431 ordinary shares of 1p each 1,156 1,156
19 Reserves
In accordance with the requirements of SIC 12 “Consolidation – special purpose entities” and IAS 32 “Financial Instruments: 
Presentation”, certain of the assets and liabilities of the EBT have been included in the Company’s and Group’s accounts 
resulting in the inclusion of £59,000 (2009: £59,000) own shares and £78,000 (2009: £78,000) share premium. This represents 
shares held by the Employee Benefit Trust that had not vested to employees. (2010: 5,888,273 ordinary shares; 2009: 5,886,308 
ordinary shares). 
During the period the Company purchased 1,240,000 of its own shares at an average price of 36p. The shares are recorded as 
Treasury Shares and equate to £453,000.
20 Financial commitments
At 30 September 2010 the Group and Company had commitments under non-cancellable operating leases as follows:
Offices Other
2010  
£’000 
2009  
£’000
2010  
£’000
2009  
£’000
Within one year 265 324 16 16
Between one and two years 43 265 1 16
Between two and five years – 43 – 1
308 632 17 33
The operating lease on the office address of the Group has a break clause in November 2011 after which time the Group has the 
option to renew.
21 Directors’ emoluments
The emoluments of all the Directors who held office during the year were as follows: 
Fees/salary  
£
Benefits  
in kind  
£
Pension  
£
Bonus  
£
2010  
Total 
£
2009  
Total  
£
J Keith R Falconer 65,000 – – – 65,000 65,000
Ian R Simm 207,500 6,369 29,875 382,713 626,457 467,274
Peter J Gibbs 30,000 – – – 30,000 30,000
Mark B E White 30,000 – – – 30,000 30,000
Guy de Froment 30,000 – – – 30,000 30,000
Vince O’Brien 30,000 – – – 30,000 2,308
392,500 6,369 29,875 382,713 811,457 624,582
David Kempton resigned as a Director on 2 February 2009 and in 2009 received emoluments of £10,623.
All amounts relate to the period served as a Director. No amounts were paid to or receivable by Directors under long-term 
incentive schemes.
J Keith R Falconer’s fees include amounts paid to his service company, Labhdal Associates.
One Director accrued pension benefits (2009: One).
Employee benefits, compromising salaries and benefits paid to other senior employees in the year, amounted to £1,633,000 
(2009: £1,297,000).  Impax Asset Management Group plc
Annual Report and Accounts 2010
42
22 Employees
Number of employees
The average number of persons (excluding Non-Executive Directors) employed during the year was 42 (2009: 34). 
2010  
Number
2009  
Number
Chief executive 1 1
Listed equity 10 8
Private equity 7 5
Operations 5 7
Marketing 5 4
Finance and compliance 9 4
Administration and support 5 5
42 34
Employment costs
2010  
£’000
2009  
£’000
Wages and salaries 6,046 4,302
Social security costs 787 525
Pensions 337 311
7,170 5,138
23 Pension costs
The Group operates two defined contribution pension schemes. The assets of the schemes are held separately from those of the 
Group in independently administered funds. The pension costs represent contributions payable by the Group to the funds and 
amounted to £337,000 (2009: £311,000). Contributions totalling £204,000 (2009: £194,600) were payable to the funds at the year 
end and are included in trade and other payables.
24 Financial risk management
Risk management is integral to the business of the Group and the Company. There is a system of controls in place to create an 
acceptable balance between the potential cost should such a risk occur and the cost of managing those risks. Management 
continually monitors the Group’s risk management process to ensure that an appropriate balance between risk and control is 
achieved. This section provides details of the Group’s and Company’s exposure to financial risks and describes the methods 
used by management to control such risk.
The Group’s and Company’s financial instruments comprise cash and various items, such as loans receivable, current asset 
investments, trade receivables and trade payables that arise directly from its operations.
Credit risk
Credit risk is the potential financial loss resulting from the failure of a customer or counterparty to settle their financial and 
contractual obligations to the Group, as and when they fall due.
The Group’s primary exposure to credit risk relates to the financial assets of the Group including cash and deposits that are 
placed with regulated financial institutions.
At the balance sheet date, the credit risk regarding cash and cash equivalent balances of the asset management business was 
spread by holding part of the balance with Lloyds TSB and the remainder in a money market fund managed by BlackRock. The 
risk of default is considered minimal. Cash balances of IARF (in which the Group has a 53.95 per cent participation), were held by 
UBS and the risk of loss due to default by UBS is also considered minimal.
The Group is exposed to credit risk in relation to its loan note with Kern River Holdings Inc. The Group does however have 
security over this loan as described in note 12. The recoverability and carrying value of this asset is monitored regularly by the 
Board. Subsequent to the year end outstanding amounts were paid in full.
Notes to the Financial Statements continued
For the Year Ended 30 September 2010 Impax Asset Management Group plc
Annual Report and Accounts 2010
43
Financial Statements
24 Financial risk management continued
The Group is exposed to credit risk on trade receivables, representing investment management fees due. An analysis of the 
ageing of these is provided in note 14.
Currency risk
A significant amount of the Group’s income is denominated in foreign currencies. The strategy of the Group for the year ended  
30 September 2010 has been to convert earned income back to GBP whilst future income streams have been left unhedged. 
Going forward the Group’s strategy is to put in place hedges where there is sufficient predictability over inflows to allow for an 
effective and efficient hedge. The amount of the Group’s expenses denominated in foreign currencies is minimal.
The Group and Company activities are principally conducted in GBP, EUR, USD and JPY. 
The Group’s exposure to foreign currency exchange rate risk at 30 September 2010 was: 
EUR/GBP  
£’000
USD/GBP   
£’000
JPY/GBP  
£’000
Other/GBP   
£’000
GBP/USD  
£’000
EUR/USD  
£’000
Other/USD   
£’000
Assets
Non-current asset investments 16 – – – – – –
Current asset investments 2,323 159 – – 1,794 741 666
Trade and other receivables 1,730 859 71 39 – – –
Cash and cash equivalents 119 92 70 – 121 28 72
4,188 1,110 141 39 1,915 769 738
Liabilities
Trade and other payables 6 242 – – 210 175 578
Third party interest in consolidated funds – – – – 821 164 12
Short-term borrowings – – – – 150 241 186
6 242 – – 1,181 580 776
Net exposure 4,182 868 141 39 734 189 (38)
The Group’s exposure to foreign currency exchange rate risk at 30 September 2009 as reformatted was: 
EUR/GBP  
£’000
USD/GBP   
£’000
JPY/GBP  
£’000
Other/GBP   
£’000
GBP/USD  
£’000
EUR/USD  
£’000
Other/USD   
£’000
Assets
Non-current asset investments 13 14 – – – – –
Current asset investments 289 11 – – 24 770 406
Trade and other receivables 918 1,095 114 – – – –
Cash and cash equivalents 1,063 105 36 – – – 118
2,270 1,225 150 – 24 770 524
Liabilities
Trade and other payables 13 34 – – 210 434 350
Third party interest in consolidated funds – – – – 5 (72) 4
Short-term borrowings – – – – 10 490 184
13 34 – – 225 852 538
Net exposure 2,257 1,191 150 – (201) (82) (14) Impax Asset Management Group plc
Annual Report and Accounts 2010
44
24 Financial risk management continued
The Company’s exposure to foreign currency exchange rate risk at 30 September 2010 was:
EUR/GBP 
£’000
USD/GBP  
£’000
JPY/GBP  
£’000
Assets
Non-current asset investments 13 – –
Current asset investments 2,323 – –
Trade and other receivables – 737 –
Cash and cash equivalents 27 35 70
2,363 772 70
Liabilities
Trade and other payables 7 6 –
Net exposure 2,356 766 70
The Company’s exposure to foreign currency exchange rate risk at 30 September 2009 was:
EUR/GBP 
£’000
USD/GBP  
£’000
JPY/GBP  
£’000
Assets
Non-current asset investments 13 – –
Current asset investments 289 1,504 –
Cash and cash equivalents 43 94 36
345 1,598 36
Liabilities
Trade and other payables – – –
Net exposure 345 1,598 36
The following tables demonstrate the estimated impact on Group post-tax profit and net assets and Company post-tax profit and 
net assets caused by a 5 per cent increase/(decrease) in the exchange rate used to revalue significant foreign assets and 
liabilities, assuming all other variables are held constant.
Post-tax profit
Group
2010  
£’000
2009  
£’000
Translation of significant foreign assets and liabilities
GBP/USD up 5% (34) (116)
GBP/USD down 5% 34 129
GBP/EUR up 5% (209) (147)
GBP/EUR down 5% 209 162
GBP/JPY up 5% (7) (7)
GBP/JPY down 5% 7 8
GBP/Other up 5% (1) – 
GBP/Other down 5% 1 – 
EUR/USD up 5% (9) 4
EUR/USD down 5% 9 (4)
Notes to the Financial Statements continued
For the Year Ended 30 September 2010 Impax Asset Management Group plc
Annual Report and Accounts 2010
45
Financial Statements
24 Financial risk management continued
Post-tax profit
Company
2010  
£’000
2009  
£’000
Translation of significant foreign assets and liabilities
GBP/USD up 5% (39) (91)
GBP/USD down 5% 39 101
GBP/EUR up 5% (118) (16)
GBP/EUR down 5% 118 17
GBP/JPY up 5% (3) (2)
GBP/JPY down 5% 3 2
Liquidity risk and regulatory capital requirements
Liquidity risk is the risk that the Group does not have sufficient financial resources to meet its obligations when they fall due. The 
Group monitors its liquidity risk using cash flow forecasts taking into account the commitments made to its private equity funds 
(see note 25) and the cash required to meet the Group’s investment plans and its regulatory capital requirements. The Group has 
significant cash resources and no borrowings, apart from those short-term borrowings held by IARF which are held with the 
same counterparty with which it deposits its funds. 
The Group considers its share capital, share premium and retained earnings to constitute its total capital. These are shown in the 
Statement of Changes in Equity. Certain of the Group companies are regulated and must maintain liquid capital resources to 
comply with the capital requirements of the Financial Services Authority. Throughout the period the companies have significantly 
exceeded these requirements.
At 30 September 2010 the Group had cash and cash equivalents of £11,081,000. This is £3,953,000 in excess of trade and other 
payables which have maturities as shown below and £1,500,000 in excess of total current liabilities. The Group in addition had 
other current assets of £13,385,000.
Group – 2010
Less than  
1 month  
£’000
1–12 months 
£’000
More than 
12 months 
£’000
No stated 
maturity 
£’000
Total  
£’000
Trade payables 30 – – – 30
Taxation and other social security – 107 – – 107
Other payables – 3,609 7 – 3,616
Accruals and deferred income – 3,375 – – 3,375
Total trade and other payables 30 7,091 7 – 7,128
At 30 September 2009 the Group had cash and cash equivalents of £9,600,000. This was £4,990,000 in excess of trade and 
other payables which have maturities as shown below and £2,620,000 in excess of total current liabilities. The Group in addition 
had other current assets of £7,117,000.
Group – 2009
Less than  
1 month  
£’000
1–12 months 
£’000
More than 
12 months 
£’000
No stated 
maturity 
£’000
Total  
£’000
Trade payables 239 – – – 239
Taxation and other social security 111 – – – 111
Other payables – 1,593 7 – 1,600
Accruals and deferred income – 2,660 – – 2,660
Total trade and other payables 350 4,253 7 – 4,610
  Impax Asset Management Group plc
Annual Report and Accounts 2010
46
24 Financial risk management continued
At 30 September 2010 the Company had cash and cash equivalents of £3,466,000 which is £2,675,000 in excess of trade and 
other payables due to external parties which have maturities as shown in the table below.
Company – 2010
Less than  
1 month  
£’000
1–12 months 
£’000
More than 
12 months 
£’000
No stated 
maturity 
£’000
Total  
£’000
Trade payables 6 – – – 6
Amounts owed to Group undertakings – – – 6,832 6,832
Other payables – – 7 – 7
Accruals and deferred income – 778 – – 778
Total trade and other payables 6 778 7 6,832 7,623
At 30 September 2009 the Company had cash and cash equivalents of £2,721,000 which is £1,949,000 in excess of trade and 
other payables due from external parties which have maturities as shown in the table below.
Company – 2009
Less than  
1 month  
£’000
1–12 months 
£’000
More than 
12 months 
£’000
No stated 
maturity 
£’000
Total  
£’000
Trade payables 55 – – – 55
Amounts owed to Group undertakings – – – 4,194 4,194
Other payables – – 7 – 7
Accruals and deferred income – 710 – – 710
Total trade and other payables 55 710 7 4,194 4,966
Interest rate risk
The Group has both interest bearing assets and liabilities. Interest bearing assets include cash balances that earn interest at a 
floating rate and a loan note earning interest at a fixed rate. The average interest rate on the cash balances during the year was 
0.51 per cent (2009: 1.29 per cent). The interest rate on the loan note was 2 per cent (2009: 2 per cent).
At the balance sheet date the Group had the following significant financial assets exposed to variable interest rate risk.
2010 
£’000
2009 
£’000
Cash at bank and in hand:
Readily available for the principal operating activities of the Group 8,339 6,694
Other 3,390 3,590
11,729 10,284
Other amounts relate to cash held by IARF fund, see note 29.
A 0.5 per cent increase in interest rates would have increased Group profit after tax by £9,000 (2009: £20,000). An equal change 
in the opposite direction would have decreased profit after tax by £9,000 (2009: £20,000).
A t 	 t he 	 balance 	 sheet 	 dat e 	 t he 	 Compan y ’ s 	 cash 	 balance 	 o f 	 £3 , 466 , 0 0 0 	 ( 2 0 09 : 	 £ 2 , 7 2 1 , 0 0 0 ) 	 w as 	 its 	 on ly 	 fi nancial 	 i nst rumen t 	 su b ject 	
to variable interest rate risk. The impact of a 0.5 per cent increase or decrease in interest rate on the post-tax profit is not material 
to the Company. 
The hedge fund holds cash positions and as a result is exposed to interest rate risk. Cash balances of the hedge fund at the year 
end were as follows:
2010  
£’000
2009  
£’000
Cash at bank 3,390 3,590
Short-term borrowings (648) (684)
2,742 2,906
The impact of a 0.5 per cent movement in interest rates on the results of the hedge fund is immaterial to the post-tax profit of  
the Group.
Notes to the Financial Statements continued
For the Year Ended 30 September 2010 Impax Asset Management Group plc
Annual Report and Accounts 2010
47
Financial Statements
24 Financial risk management continued
Equity market pricing risk
The 	 Group 	 and 	 Compan y 	 has 	 made 	 i n v est men ts 	 i n 	 its 	 o wn 	 managed 	 funds 	 and 	 t he 	 v al ue 	 o f 	 t hese 	 i n v est men ts 	 ar e 	 su b ject 	 t o	
equity market risk. The significant holding at 30 September 2010 that is exposed to equity market price risk is the Group’s 
investment in the IARF. This fund, through its own investment strategy mitigates market risk such that the fund valuation should 
fluctuate at less than 10%. An increase in the funds valuation would increase Group profits by £176,000. A decrease of 10% in 
the funds valuation would decrease Group profit by £176,000. 
The significant holdings at 30 September 2009 exposed to equity market price risk are the Group’s holdings in the Impax 
Absolute Return Fund and the IFSL Impax Environmental Leaders Fund.
As noted in note 15 “Current Asset Investments”, the investment in the unlisted Private Equity funds are recorded at fair value, 
with fair value being calculated using the discounted cash flow method. A rise of 1 per cent in the discount rate applied to cash 
flows would result in a decrease in profit from operations and net assets of £229,000. A 1 per cent reduction in the discount rate 
would result in a corresponding increase of £253,000 in profit from operations and net assets. A rise of 0.5 per cent in the 
inflation rate applied in the calculations would increase profit from operations and net assets by £158,000. A fall of 0.5 per cent in 
the inflation rate would decrease profit from operation and net assets by £149,000.
Fair values of financial assets and liabilities
The Directors consider there to be no difference between the carrying value of the Group’s and Company’s financial assets and 
liabilities and their fair value.
The hierarchical classification of financial assets and liabilities measured at fair value are as follows:
Group – 2010
Level 1 
£’000
Level 2 
£’000
Level 3 
£’000
Total  
£’000
Assets
Current asset investments 4,524 – 2,483 7,007
Total financial assets 4,524 – 2,483 7,007
Liabilities
Trade and other payables 3,609 – – 3,609
Third party interest in consolidated funds – 1,506 – 1,506
Total financial liabilities 3,609 1,506 – 5,115
Company – 2010
Level 1 
£’000
Level 2 
£’000
Level 3 
£’000
Total  
£’000
Assets
Current asset investments 332 – 2,323 2,655
Total financial assets 332 – 2,323 2,655
Liabilities
Trade and other payables – – – – 
Total financial liabilities – – – –  Impax Asset Management Group plc
Annual Report and Accounts 2010
48
24 Financial risk management continued
Financial assets and liabilities by category
Group – 2010
Available  
for sale  
£’000
FVTPL – 
designated 
on initial 
recognition 
£’000
FVTPL – 
held for 
trading 
£’000
Loans and 
receivables 
£’000
Financial 
liabilities 
measured at 
amortised 
cost  
£’000
Financial assets:
Cash and cash equivalents – – – 11,729 – 
Trade and other receivables – – – 3,377 – 
Other financial assets – – – 2,242 – 
Investments 16 2,323 4,684 – – 
Total financial assets 16 2,323 4,684 17,348 – 
Financial liabilities:
Trade and other payables – – 3,609 – 37
Short-term borrowings – – – – 648
Third party interest in consolidated funds – – – – 1,506
Total financial liabilities – – 3,609 – 2,191
FVTPL = Fair value through profit and loss
Group – 2009
Available  
for sale  
£’000
FVTPL – 
designated 
on initial 
recognition 
£’000
FVTPL – 
held for 
trading 
£’000
Loans and 
receivables 
£’000
Financial 
liabilities 
measured at 
amortised 
cost  
£’000
Financial assets:
Cash and cash equivalents – – – 10,284 – 
Trade and other receivables – – – 2,385 – 
Other financial assets – – – 1,244 – 
Investments 14 289 3,638 – –
Total financial assets 14 289 3,638 13,913 –
Financial liabilities:
Trade and other payables – – 1,395 – 444
Short-term borrowings – – – – 684
Third party interest in consolidated funds – – – – 1,686
Total financial liabilities – – 1,395 – 2,814
Company – 2010
Available  
for sale  
£’000
FVTPL – 
designated 
on initial 
recognition 
£’000
FVTPL – 
held for 
trading 
£’000
Loans and 
receivables 
£’000
Financial 
liabilities 
measured at 
amortised 
cost  
£’000
Financial assets:
Cash and cash equivalents – – – 3,466 – 
Trade and other receivables – – – 56 – 
Investments 13 2,655 – – – 
Total financial assets 13 2,655 – 3,522 – 
Financial liabilities
Trade and other payables – – – – 13
Total financial liabilities – – – – 13
Notes to the Financial Statements continued
For the Year Ended 30 September 2010 Impax Asset Management Group plc
Annual Report and Accounts 2010
49
Financial Statements
24 Financial risk management continued
Company – 2009
Available  
for sale  
£’000
FVTPL – 
designated 
on initial 
recognition 
£’000
FVTPL – 
held for 
trading 
£’000
Loans and 
receivables 
£’000
Financial 
liabilities 
measured at 
amortised 
cost  
£’000
Financial assets:
Cash and cash equivalents – – – 2,721 – 
Trade and other receivables – – – 138 – 
Investments 13 1,793 – – – 
Total financial assets 13 1,793 – 2,859 – 
Financial liabilities:
Trade and other payables – – – – 62
Total financial liabilities – – – – 62
25 Commitments
The Company has committed to invest up to €3,756,000 in Impax New Energy Investors LP. At 30 September 2010 the 
outstanding commitment was €1,011,000 (2009: €3,422,000) which could be called on in the period to 19 August 2015.
On 22 March 2010 the Company committed to invest the higher of €2,000,000 and 1 per cent of total committed funds to Impax 
New Energy Investors II LP. At 30 September 2010 the outstanding commitment was €1,951,000 which could be called on in the 
period to 22 March 2020.
26 Share-based payments
Long-term incentive scheme – Employee Benefit Trust
Original scheme
On 4 February 2005 shareholders approved the establishment by the Company of the Impax Group Employee Benefit Trust (the 
“EBT”) and associated share scheme as part of the Company’s employee incentive arrangements. The scheme provided for the 
issue of up to 18.25 million shares to employees in respect of the three years ended 30 September 2007 for nil consideration. The 
shares vested to employees on 30 September 2007, 2008 and 2009. A total of 16,777,045 vested to employees under the scheme 
including 1,895,000 on 30 September 2009 (2010: Nil).
Extension
On 31 January 2008 shareholders approved an extension to the existing EBT scheme whereby a further 18.25 million shares  
c a n 	 b e 	 i s s u e d 	 t o 	 em p l o y e e s . 	 T h e 	 g r a n t i n g 	 o f 	 s h ar e s 	 t o 	 em p l o y e e s 	 i s 	 s u b j e c t 	 t o 	 p e r f o r m a n c e 	 c o n d i t i o n s 	 f o r 	 ea c h 	 o f 	 t h e 	 t h r e e	
years ended 30 September 2008, 2009 and 2010. The condition for the year ended 30 September 2010 is that the average 
mid-market price of the ordinary shares of the Company increases to at least 152.09 per cent of the reference price (38.5p)  
for the 45 business days following the announcement of the results for the financial year ended 30 September 2010 and that  
Total Shareholder Return over the financial year ending 30 September 2010 exceeds that of the FTSE All Share Index over the 
same period. In addition awards will only be made where an employee has satisfied demanding targets in relation to his or her 
own performance.
No 	 shar es 	 ha v e 	 been 	 gran t ed 	 t o 	 emplo y ees 	 t o 	 dat e. 	 An y 	 shar es 	 t ha t 	 m igh t 	 be 	 gran t ed 	 t o 	 emplo y ees 	 w ou ld 	 v est 	 su b ject 	 t o	
continued employment at 30 September 2012. Accordingly there is no charge to the Income Statement for the year ended  
30 September 2010.
Income statement charge
2010  
£’000
2009  
£’000
Original scheme – 552
– 552 Impax Asset Management Group plc
Annual Report and Accounts 2010
50
26 Share-based payments continued
For the original scheme the charge is in respect of shares that vested on 30 September 2009 that were granted on 30 September 
2008. The fair value of services received in return for the shares awarded is deemed to be the market value of the shares 
awarded at the date of grant. 
EBT share transactions
A summary of transactions undertaken by the EBT is as follows:
Ordinary 
shares allotted 
to the EBT
Ordinary 
shares sold 
by the EBT
Total 
ordinary 
shares
Monday, September 05, 2005 8,200,000 (930,000) 7,270,000
Monday, August 14, 2006 8,075,000 (464,920) 7,610,080
Friday, September 14, 2007 1,975,000 (78,035) 1,896,965
Wednesday, September 24, 2008 6,083,333 (197,025) 5,886,308
24,333,333 (1,669,980) 22,663,353
Vested on 30 September 2007 (7,270,000)
Vested on 30 September 2008 (7,610,080)
Vested on 30 September 2009 (1,895,000)
Shares held as at 30 September 2010 5,888,273
As required by SIC 12 – “Consolidation – Special Purpose Entities” and IAS 32 the EBT is included in the Company’s and Group’s 
accounts, accordingly this shareholding of 5,886,273 ordinary shares is represented in the Statement of Changes In Equity as 
Own Shares (£59,000).
If the performance conditions of the extension scheme are met the Company would allot further shares to the EBT. If the 
conditions are not met the Company has an option to repurchase the shares issued to the EBT to date. It is intended that the 
Company would exercise these options unless shareholders authorise the Company to implement further arrangements.
Long-term incentive scheme – 2009 share option plan
In December 2009 1,240,000 zero strike price options over the Company’s shares were granted to certain employees. The 
awards do not have performance conditions but do have a time vesting condition such that the options vest to employees on 
3 0 	 S e p t em b e r 	 2 0 1 2 	 s u b j e c t 	 t o 	 t h e 	 c o n t i n u e d 	 em p l o y m en t 	 o f 	 t h e 	 p ar t i c i p a n t . 	 T h e 	 f a i r 	 v a l u e 	 o f 	 s e r v i c e s 	 r e c e i v e d 	 i n 	 r e t u r n 	 f o r 	 t h e	
share options awarded was deemed to be the share price of the options on the grant date being 40.25p. The charge to the 
Income Statement in respect of the awards for the current year is £141,000. The charge is offset by a reduction in the total bonus 
pool paid to employees.
Income statement charge
2010  
£’000
2009 
 £’000
Charge 141 –
141 –
27 Ultimate controlling party
The Company has no ultimate controlling party.
Notes to the Financial Statements continued
For the Year Ended 30 September 2010 Impax Asset Management Group plc
Annual Report and Accounts 2010
51
Financial Statements
28 Related party transactions – Group and Company
Impax New Energy Investors LP, Impax New Energy Investors II LP, Impax New Energy Investors SCA, Impax Carried Interest 
Partners LP and Impax Carried Interest Partners II LP are related parties of the Group by virtue of subsidiaries being the General 
Partners to these funds.
IFSL Impax Environmental Leaders is a related party of the Group by virtue of a subsidiary undertaking, Impax Asset 
Management Limited, acting as the fund’s manager. The Group held an equity stake of 9.83 per cent as at 30 September 2010.
BNP Paribas Investment Partners is a related party of the Group by virtue of owning a 28.2 per cent equity holding.
The aggregate related party transactions during the period, and holdings as at the year end, are as follows:
Group
2010  
£’000
2009  
£’000
Statement of Comprehensive Income
Revenue 4,571 4,159
Statement of Financial Position
Non-current asset investments 16 13
Current asset investments 2,655 1,793
Trade and other receivables 1,743 11
Trade and other payables 101 28
Company
2010  
£’000
2009  
£’000
Statement of Comprehensive Income
Revenue – – 
Statement of Financial Position
Non-current asset investments 16 13
Current asset investments 2,655 1,793
All balances were unsecured.
29 Cash and cash equivalents
For the purposes of the cash flow statement, cash and cash equivalents includes the following:
Group
2010  
£’000
2009  
£’000
Cash at bank and in hand
Readily available for the principal operating activities of the Group 8,339 6,694
Not available for the Group 3,390 3,590
11,729 10,284
Short-term borrowings
Readily available for the principal operating activities of the Group – – 
Not available for the Group (648) (684)
(648) (684)
Cash and cash equivalents 11,081 9,600 Impax Asset Management Group plc
Annual Report and Accounts 2010
52
29 Cash and cash equivalents continued
Cash balances of the Group at 30 September 2010 included £3,390,000 (2009: £3,590,000) of cash held and £648,000  
(2009: £684,000) of short-term borrowings relating to the hedge fund, IARF. These amounts (net total: £2,742,000, 2009: 
£ 2 , 9 0 6 , 0 0 0 ) 	 ar e 	 h e l d 	 w i t h 	 t h e 	 s a m e 	 c o u n t e r - p ar t y 	 a n d 	 ar e 	 s u b j e c t 	 t o 	 f u l l 	 r i g h t 	 o f 	 o f f s e t . 	 T h e 	 G r o u p 	 e x e r c i s e s 	 n o 	 d i r e c t 	 c o n t r o l	
over these funds.
Company
2010  
£’000
2009  
£’000
Cash at bank and in hand 3,466 2,721
30 Subsequent events
On 4 November 2010 the Company committed to invest an additional €600,000 in Impax New Energy Investors II LP. 
Notes to the Financial Statements continued
For the Year Ended 30 September 2010 Impax Asset Management Group plc
Annual Report and Accounts 2010
53
Financial Statements
Notice of Annual General Meeting
Notice is hereby given that the Annual General Meeting of Impax Asset Management Group plc (the “Company”) will be held at 
the offices of MHP Communications Ltd., 60 Great Portland Street, London, W1W 7RT at 11.00 a.m. on 2 March 2011 for the 
following purposes:
As Ordinary Business
To consider and, if thought fit, pass the following resolutions which will be proposed as ordinary resolutions:
1. To receive and adopt the Company’s annual accounts for the financial year ended 30 September 2010 together with the 
Directors’ Report and the Auditor’s Report on those accounts.
2. To re-elect J Keith R Falconer as a Director.
3. To re-elect Peter J Gibbs as a Director. 
4. To reappoint KPMG Audit Plc as auditors of the Company and to authorise the Directors to fix their remuneration.
5. To declare a final dividend in respect of the financial year ended 30 September 2010 of 0.6 pence per ordinary share payable 
to the holders of ordinary shares on the register of members at the close of business on 11 February 2011.
As Special Business
To consider and, if thought fit, pass the following resolutions which will be proposed as special resolutions:
6. THAT the Directors of the Company be and are hereby empowered pursuant to section 570 of the Companies Act 2006 (the 
“Act”) to allot equity securities (within the meaning of section 560 of the Act) for cash, pursuant to the authority conferred by 
an ordinary resolution passed on 10 February 2010 or by way of a sale of treasury shares, as if section 561 of the Act did not 
apply to any such allotment or sale, provided that the power conferred by this resolution shall be limited to: 
 (a) the allotment or sale of equity securities, either in connection with an issue or offer of equity securities (including, without 
limitation, under a rights issue, open offer or similar arrangement) to holders of equity securities in proportion (as nearly as 
m a y 	 b e 	 p r a c t i c a b l e ) 	 t o 	 t h e i r 	 r e s p e c t i v e 	 h o l d i n g s 	 o f 	 e q u i t y 	 s e c u r i t i e s , 	 s u b j e c t 	 o n l y 	 t o 	 s u c h 	 e x c l u s i o n s 	 o r 	 o t h e r 	 ar r a n g em en t s	
as the Directors of the Company may consider necessary or expedient to deal with any treasury shares, fractional 
entitlements or legal or practical problems under the laws of any territory, or the requirements of any regulatory body or 
stock exchange in any territory; and
 (b) the allotment or sale (otherwise than pursuant to resolution 6(a)) of equity securities up to an aggregate nominal value of 
£115,582.43.
 The power conferred by this resolution shall expire (unless previously renewed, revoked or varied by the Company in general 
meeting) at the conclusion of the Company’s next annual general meeting, except that the Company may at any time before 
such expiry make any offer or agreement which would or might require equity securities to be allotted or sold after such expiry 
and the Directors of the Company may allot or sell equity securities in pursuance of such an offer or agreement as if the 
authority conferred hereby had not expired.
7. THAT the Company be and is generally authorised for the purposes of section 701 of the Act to make one or more market 
purchases (within the meaning of section 693(4) of the Act) of its ordinary shares of 1 pence each provided that:
 (a) the maximum aggregate number of ordinary shares that may be purchased is 5,779,122;
 (b) the minimum price which may be paid for each ordinary share is 1 pence;
 (c) the maximum price which may be paid for each ordinary share is not more than 105 per cent. of the average of the middle 
market quotations for an ordinary share taken from the London Stock Exchange for the five business days immediately 
preceding the day of purchase; and  Impax Asset Management Group plc
Annual Report and Accounts 2010
54
 (d) unless previously renewed, varied or revoked, the authority conferred by this resolution shall expire at the conclusion of the 
Company’s next annual general meeting save that the Company may make a contract or contracts to purchase ordinary 
shares under the authority conferred by this resolution prior to the expiry of such authority which will or may be executed 
wholly or partly after the expiry of such authority and may make a purchase of ordinary shares in pursuance of any such 
contract or contracts.
By order of the Board
Michael Knight
Company Secretary
7 January 2011
Notes:
1.  Any member entitled to attend and vote at the meeting is entitled to appoint a proxy or proxies to attend, speak and vote in his or her stead. A member may appoint more 
than one proxy provided each proxy is appointed to exercise rights attached to different shares. A member may not appoint more than one proxy to exercise rights 
attached to any one share. A proxy need not be a member of the Company. A form of proxy is enclosed for use of members. Completion and return of a form of proxy or 
CREST Proxy Instruction (as described in note 4) will not preclude a member from attending and voting in person at the meeting should he or she so decide. You can only 
appoint a proxy using the procedures set out in these notes and the notes to the form of proxy. If you appoint a proxy and attend the meeting in person, your proxy 
appointment will automatically be terminated.
2.  To be valid, the form of proxy and the power of attorney or other authority (if any) under which it is signed (or a notarially certified copy of such power of authority) must be 
deposited at the offices of Capita Registrars, PXS, 34 Beckenham Road, Beckenham, Kent BR3 4TU by 10.30 a.m. on 28 February 2011. To change your proxy instructions 
simply submit a new proxy appointment using the methods set out above and in the notes to the form of proxy. Note that the cut-off time for receipt of proxy appointments 
also applies in relation to amended instructions; any amended proxy appointment received after the relevant cut-off time will be disregarded.
3.  To be entitled to attend and vote at the meeting (and for the purpose of the determination by the Company of the number of votes they may cast), members must be entered 
in 	 the 	 Re gis t e r 	 of 	 Me mb e r s 	 at 	 6.0 0 	 p .m. 	 on 	 28 	 F e b r ua r y 	 20 1 1 	 ( o r , 	 in 	 the 	 ev e nt 	 of 	 a n y 	 adjour nme nt, 	 6.0 0 	 p .m. 	 o n 	 the 	 dat e 	 which 	 is 	 t w o 	 days 	 b efo re 	 the 	 time 	 of 	 the 	 adjour ne d 	
meeting).
4. 	 	 CR EST 	 me mb e r s 	 who 	 wis h 	 t o 	 a pp oint 	 a 	 p ro x y 	 o r 	 p ro xie s 	 throu gh 	 the 	 CR EST 	 e le c tro nic 	 p ro x y 	 a pp ointme nt 	 se r vic e 	 may 	 do 	 s o 	 fo r 	 the 	 me eting 	 a nd 	 a n y 	 adjour nme nt( s) 	
thereof by using the procedures described in the CREST Manual. CREST personal members or other CREST sponsored members, and those CREST members who have 
appointed a voting service provider(s) should refer to their CREST sponsors or voting service provider(s), who will be able to take the appropriate action on their behalf. In 
order for a proxy appointment or instruction made by means of CREST to be valid, the appropriate CREST message (a “CREST Proxy Instruction”) must be properly 
authenticated in accordance with Euroclear UK & Ireland Limited’s specifications and must contain the information required for such instructions, as described in the 
CREST Manual. The message must be transmitted so as to be received by the Company’s agent, Capita Registrars Limited (CREST Participant ID: RA10), no later than 48 
hours before the time appointed for the meeting. For this purpose, the time of receipt will be taken to be the time (as determined by the time stamp applied to the message 
by the CREST Application Host) from which the Company’s agent is able to retrieve the message by enquiry to CREST in the manner prescribed by CREST. CREST 
members and, where applicable, their CREST sponsors or voting service provider(s) should note that Euroclear UK & Ireland Limited does not make available special 
procedures in CREST for any particular messages. Normal system timings and limitations will therefore apply in relation to the input of CREST Proxy Instructions. It is the 
responsibility of the CREST member concerned to take (or, if the CREST member is a CREST personal member or sponsored member or has appointed a voting service 
provider(s), to procure that his CREST sponsor or voting service provider(s) take(s)) such action as shall be necessary to ensure that a message is transmitted by means of 
the CREST system by any particular time. In this connection, CREST members and, where applicable, their CREST sponsors or voting service provider(s) are referred in 
particular to those sections of the CREST Manual concerning practical limitations of the CREST system and timings. The Company may treat as invalid a CREST Proxy 
Instruction in the circumstances set out in Regulation 35(5) of the Uncertificated Securities Regulations 2001.
Notice of Annual General Meeting continued Impax Asset Management Group plc
Annual Report and Accounts 2010
55
Financial Statements
Notes Impax Asset Management Group plc
Annual Report and Accounts 2010
56
Notes VOTE
Ordinary resolutions FOR AGAINST
WITHHELD
1. To receive and adopt the Company’s annual accounts for the ﬁnancial year ended 
30 September 2010.
2. To re-elect Mr J. Keith R. Falconer as a Director. 
3. To re-elect Mr Peter J. Gibbs as a Director.
4. To re-appoint KPMG Audit Plc as auditors of the Company and to authorise the Directors 
to ﬁx their remuneration.
5. To declare a ﬁnal dividend in respect of the ﬁnancial year ended 30 September 2010 of 
0.6 pence per share.
Special resolutions
6. To disapply pre-emption rights.
7. To authorise the Company to make market purchases of its shares.
Form of Proxy
Impax Asset Management Group plc
Form of proxy for use at the Annual General Meeting of Impax Asset Management Group plc (The “Company”) to be held
at the ofﬁces of MHP Communications Ltd., 60 Great Portland Street, London W1W 7RT at 11.00 a.m. on 2 March 2011.
I/We......................................................................................................................................................................................................
(BLOCK LETTERS PLEASE)
of ..........................................................................................................................................................................................................
being (a) member(s) of Impax Asset Management Group plc hereby appoint the Chairman of the Meeting or
..............................................................................................................................................................................................................
as my/our proxy, to vote for me/us and on my/our behalf as indicated below at the aforementioned Annual General
Meeting of the Company and at any adjournment thereof. 
Please indicate with an “X” here if this proxy appointment is one of multiple appointments being made. 
The manner in which the proxy is to vote should be indicated by inserting “X” in the space provided. Where no “X” is
inserted, the proxy will vote or abstain at his/her discretion.
Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2011 Signed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Notes
1. Any member entitled to attend and vote at the meeting is entitled to appoint a proxy or proxies to attend, speak and vote in his or her stead. A member
may appoint more than one proxy provided each proxy is appointed to exercise rights attached to different shares. A member may not appoint more
than one proxy to exercise rights attached to any one share. A proxy need not be a member of the Company. A form of proxy is enclosed for use of
members. Completion and return of a form of proxy or CREST Proxy Instruction (as described in note 4) will not preclude a member from attending
and voting in person at the meeting should he or she so decide. You can only appoint a proxy using the procedures set out in these notes and the
notes to the form of proxy. If you appoint a proxy and attend the meeting in person, your proxy appointment will automatically be terminated.
2. To be valid, the form of proxy and the power of attorney or other authority (if any) under which it is signed (or a notarially certiﬁed copy of such
power of authority) must be deposited at the ofﬁces of Capita Registrars, PXS, 34 Beckenham Road, Beckenham, Kent BR3 4TU by 10.30 a.m. on
28 February 2011. To change your proxy instructions simply submit a new proxy appointment using the methods set out above and in the notes to
the form of proxy. Note that the cut-off time for receipt of proxy appointments also applies in relation to amended instructions; any amended proxy
appointment received after the relevant cut-off time will be disregarded.
3. To be entitled to attend and vote at the meeting (and for the purpose of the determination by the Company of the number of votes they may cast),
members must be entered in the Register of Members at 6.00 p.m. on 28 February 2011 (or, in the event of any adjournment, 6.00 p.m. on the date
which is two days before the time of the adjourned meeting).
4. CREST members who wish to appoint a proxy or proxies through the CREST electronic proxy appointment service may do so for the meeting and any
adjournment(s) thereof by using the procedures described in the CREST Manual. CREST personal members or other CREST sponsored members, and
those CREST members who have appointed a voting service provider(s) should refer to their CREST sponsors or voting service provider(s), who will
be able to take the appropriate action on their behalf. In order for a proxy appointment or instruction made by means of CREST to be valid, the
appropriate CREST message (a “CREST Proxy Instruction”) must be properly authenticated in accordance with Euroclear UK & Ireland Limited’s
speciﬁcations and must contain the information required for such instructions, as described in the CREST Manual. The message must be transmitted so
as to be received by the Company’s agent, Capita Registrars Limited (CREST Participant ID: RA10), no later than 48 hours before the time appointed
for the meeting. For this purpose, the time of receipt will be taken to be the time (as determined by the time stamp applied to the message by the
CREST Application Host) from which the Company’s agent is able to retrieve the message by enquiry to CREST in the manner prescribed by CREST.
CREST members and, where applicable, their CREST sponsors or voting service provider(s) should note that Euroclear UK & Ireland Limited does not
make available special procedures in CREST for any particular messages. Normal system timings and limitations will therefore apply in relation to the
input of CREST Proxy Instructions. It is the responsibility of the CREST member concerned to take (or, if the CREST member is a CREST personal
member or sponsored member or has appointed a voting service provider(s), to procure that his CREST sponsor or voting service provider(s) take(s))
such action as shall be necessary to ensure that a message is transmitted by means of the CREST system by any particular time. In this connection,
CREST members and, where applicable, their CREST sponsors or voting service provider(s) are referred in particular to those sections of the CREST
Manual concerning practical limitations of the CREST system and timings. The Company may treat as invalid a CREST Proxy Instruction in the
circumstances set out in Regulation 35(5) of the Uncertiﬁcated Securities Regulations 2001.
Linkway L15913a  Impax Asset Management Group plc
Mezzanine Floor
Pegasus House
37–43 Sackville Street
London
W1S 3EH
United Kingdom
T: +44 (0) 20 7434 1122
F: +44 (0) 20 7434 1123
E: info@impax.co.uk
www.impax.co.uk