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Impax Environmental Markets PLC (LSE:IEM) announced on Monday that it experienced a challenging first half of the year, with performance falling short of its benchmark and shares trading at a discount.
Performance Metrics and Benchmark Comparison
The London-based environmental markets investment trust reported a decline in net asset value (NAV), which fell by 1.3% to 429.3 pence per share as of June 30, down from 434.9 pence at the end of December. The NAV total return for the period was negative 0.5%, which lagged behind the benchmark MSCI AC World Index, which achieved a return of 12% during the same timeframe.
Financial and Dividend Updates
Despite the decline in NAV, net assets increased by 8.8% to £1.11 billion, up from £1.22 billion. On a positive note, Impax Environmental Markets raised its interim dividend by 5.9% to 1.8 pence per share, up from 1.7 pence per share in the previous year.
Challenges and Market Conditions
Chair Glen Suarez noted that the macroeconomic environment has presented ongoing challenges and uncertainty, impacting the small- and mid-cap companies that IEM invests in. He highlighted that despite these difficulties, the economic appeal of renewable energy continues to grow, driven by cost reductions and supportive policies, which is accelerating the transition to sustainable energy.
Share Price Discount and Buyback Actions
The discount of the ordinary share price to NAV widened to 9.6%, up from 7.9%, which the company described as disappointing. Over the past six months, 21.8 million shares, or 7.7% of the issued share capital, were repurchased. The board stated it would continue to assess the buyback or issuance of shares based on circumstances and shareholder interests.
