Final Results

Impax Group PLC
09 December 2004


                               IMPAX GROUP PLC

                        PRELIMINARY STATEMENT OF RESULTS

                      FOR THE YEAR ENDED 30 SEPTEMBER 2004

Impax Group plc, the AIM quoted boutique which provides specialist financial
services within the environmental market sector, today announces its preliminary
results for the year ended 30 September 2004.

Highlights

   • Turnover for the year increased by 47%
   • Funds managed within the asset management division performed strongly
   • Launch of Impax Environmental Markets (Ireland) - an open ended fund
     with initial assets of over £16m
   • Acceleration of strategy to grow the asset management activities

Commenting, Keith Falconer, Chairman said:

'We are very fortunate to operate within a sector that is growing far faster
than the UK economy as a whole. We have a strong reputation for providing
effective corporate financial advice and we are leaders in asset management in
the environmental market sector.

Impax is strongly placed to exploit the opportunities and increase shareholder
value in the years ahead'

For further information please contact

Keith Falconer, Chairman                                         020 7434 1122
Impax Group plc
Robert Luetchford or John Webb                                   020 7490 3788
Marshall Securities





9 December 2004

                                IMPAX GROUP PLC
                        PRELIMINARY STATEMENT OF RESULTS
                      FOR THE YEAR ENDED 30 SEPTEMBER 2004

CHAIRMAN'S STATEMENT

The sectors in which Impax specialises, renewable energy, water and waste are
growing very fast and we have positioned the company to exploit our strengths
and skills in those areas.

Shareholders place a premium on and prefer to invest in companies which exhibit,
over time, an upward trend in earnings. We now have in place a credible strategy
which is intended to give shareholders what they want - consistent earnings
which exhibit, over time, a strong positive upward trend.

The primary way in which we intend to achieve this is by growing the funds under
management in the asset management division and, since I joined the board, we
have significantly accelerated this strategy. The strong performance of Impax
Environmental Markets plc has led to demand for access to the portfolio through
an open-ended vehicle. Earlier today, I was delighted to announce the launch of
Impax Environmental Markets (Ireland), an open ended fund with the same
objective, with initial funds of over £16m. I think we can grow this rapidly. At
the same time, we are hoping to launch other funds in areas where we have strong
competitive skills. New funds will quickly yield revenues to Impax and, as these
are successfully marketed and grow, should provide an uplift in shareholder
value.

We are also well placed to offer clients corporate finance advice and
consultancy services and will continue to exploit opportunities in our
specialist sectors.

With the exit from the oil business, management is now free to concentrate on
delivering shareholder value through growing our core businesses.

Results for the period

Turnover for the year was £1,737,805, 47% higher than in the previous year. The
operating loss for the year was £293,430 (2003: £677,355) before a charge of
£282,604 (2003: £282,604) for the amortisation of goodwill.

It is never satisfactory to report a loss, but there is an improving trend and
we hope to be able to report further progress as the new funds are launched and
subsequently grown.

Corporate Finance

The corporate finance division continued to offer key services to clients. In
addition to repeat work, we were engaged by a number of new clients for both
advisory and transaction linked assignments in the waste and renewable energy
sectors. While waste sector activity continues to accelerate, we have also been
successful in securing follow-on advisory work from public sector bodies,
including the Government of Northern Ireland and The Crown Estate.

As European governments pass additional environmental legislation, industry
participants seek ever larger capital sums to finance the activities needed to
meet environmental challenges. We are ideally placed to advise our clients on
these challenges and opportunities.

The knowledge gained by advising companies and the UK government in the
environmental sectors gives us a strong competitive advantage over our
investment management competition as it allows us to generate a very
considerable proportion of our investment ideas internally and rigorously test
external ideas.

Asset Management

The asset management division performed strongly, producing revenues of
£785,000, an increase of 63% over last year. Unusually, our activities span
quoted and private investments and our clients are both from the UK and
overseas. Performance this year has been excellent across the range. Few
investment institutions have the specialist skills to invest in the
environmental sectors and our services as a
subcontractor should allow us to grow our revenues quickly as the investment
universe quickly expands.

The London-quoted Impax Environmental Markets plc ('IEM') has performed strongly
as portfolio companies have reported rising earnings, valuations have recovered
and some of the larger holdings have been bid for at significant premiums. The
Net Asset Value of IEM has risen 12.2% in the year to 30 November 2004, an out
performance over the MSCI World Index, which has risen 1.9% over the same
period. The share price of IEM has risen 27.0% during the same period and the
discount narrowed to 5.2%. There has been strong demand for exposure to the
trust's portfolio from institutional clients leading to the launch of Impax
Environmental Markets (Ireland), as mentioned above.

I can also report that our private equity funds performed well. The Recycling
Fund made its first investment in October 2004 and is expected to announce
further deals in the coming months. In addition, I can confirm that we received
the first bonus payment from the PVMTI Fund.

At the same time, we are working to secure additional mandates and I anticipate
that we will be in a position to make further announcements on this point later
in the company's financial year.

Oil Interests

As we reported earlier in the year, we have successfully concluded our exit from
the oil business through the sale of the Californian Nukern field to All
American Oil and Gas Inc. The consideration comprised a payment of US$700,000
(£393,000) and a US$5.45m Production Note. This has been accounted for in detail
in notes 28 and 31.

The Production Note has minimum quarterly payments which should provide a useful
cash stream for the business over the next few years.

Employee Share Ownership

It is important that the interests of Impax's executives and those of its
shareholders are properly entwined. At present, very little equity is held by
the directors and staff and I am seeking your approval to introduce an Employee
Benefits Trust which, in a tax efficient way, will allow key contributors to the
company's performance to build an equity stake of up to 20% in the company.
Performance criteria and share price hurdles will be put in place to protect
shareholders' interests. The proposal is as much designed to benefit
shareholders as it is staff, but we must ensure we can attract and retain first
class people if we are to maximise our returns. We will provide further details
of the proposals in a circular in the near future.

Prospects

Challenges, I discovered long ago, usually change, but seldom get any easier!
Doubtless, this will be the case at Impax. But with the oil interests sold and
with a firm business strategy in place, we all relish the chance we now have to
grow Impax actively on behalf of our shareholders. Along with two very committed
non-executive directors, I have the privilege of leading a very strong team of
professionals who are well placed to grow shareholder value.

I am aware we have much to do. But I hope you share my confidence in Impax's
future.

Keith Falconer

9 December 2004

IMPAX GROUP PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Year ended 30 September 2004

                                                        2004              2003
                                       Note                £                 £
TURNOVER
Continuing operations                              1,737,805         1,182,924
                                                 ------------      ------------

OPERATING LOSS
Continuing operations                               (576,034)         (959,959)
Impairment in value of assets             3                -        (1,626,419)
                                                 ------------      ------------
                                          2         (576,034)       (2,586,378)

Interest receivable and similar
income 49,196 6,826                                   66,612            20,382
Interest payable                                    (186,349)          (60,975)
                                                 ------------      ------------
LOSS ON ORDINARY ACTIVITIES                         (695,771)       (2,626,971)
BEFORE TAXATION
Tax on loss on ordinary activities        4                -           (32,741)
                                                 ------------      ------------
LOSS FOR THE YEAR                                   (695,771)       (2,659,712)
                                                 ============      ============

LOSS PER SHARE
Basic                                     7            (1.91)p           (7.50)p
                                                 ============      ============

Adjusted                                               (1.14)p           (2.12)p
                                                 ============      ============

CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
Year ended 30 September 2004

                                                          2004            2003
                                                             £               £
Loss for financial year                               (695,771)     (2,659,712)
Currency translation differences                      (295,708)       (318,612)
                                                    ------------    ------------
Total recognised gains and losses for the year        (955,479)     (2,978,324)
                                                    ============    ============


IMPAX GROUP PLC
CONSOLIDATED BALANCE SHEET
As at 30 September 2004
                                                        2004             2003
                                                           £                £
FIXED ASSETS
Intangible fixed assets                            1,911,701        2,194,305
Tangible fixed assets                                 15,567        2,409,141
                                                 ------------     ------------
                                                   1,927,268        4,603,446
                                                 ------------     ------------
CURRENT ASSETS
Debtors                                            3,080,171        1,236,576
Cash at bank and in hand                           1,002,100        1,219,747
                                                 ------------     ------------
                                                   4,082,271        2,456,323
CREDITORS - amounts falling due                     (476,088)        (617,778)
within one year
                                                 ------------     ------------
NET CURRENT ASSETS                                 3,606,183        1,838,545
                                                 ------------     ------------
TOTAL ASSETS LESS CURRENT LIABILITIES              5,533,451        6,441,991
                                                 ------------     ------------
CREDITORS - amounts falling due                   (2,255,505)      (2,300,000)
after more than one year                         ------------     ------------
                                                   3,277,946        4,141,991
                                                 ============     ============
CAPITAL AND RESERVES
Called up share capital                            8,891,556        8,871,441
Share premium                                        758,791          687,472
Exchange equalisation reserve                       (760,973)        (501,265)
Profit and loss account                           (5,611,428)      (4,915,657)
                                                 ------------     ------------
EQUITY SHAREHOLDERS' FUNDS                         3,277,946        4,141,991
                                                 ============     ============

IMPAX GROUP PLC
CONSOLIDATED CASHFLOW STATEMENT
Year ended 30 September 2004
                                                  Note        2004        2003
                                                                 £           £
NET CASH OUTFLOW FROM                                8    (349,112)   (875,594)
OPERATING ACTIVITIES
Returns on investments and servicing of finance      9     (38,302)    (34,482)
Tax paid                                             9     (32,741)          -
Capital expenditure and financial investment         9     (12,903)     (4,525)
Acquisitions and disposals                           9     515,325      83,730
Management of liquid resources                       9      60,736      75,016
                                                       ----------- ------------
NET CASH INFLOW/(OUTFLOW) BEFORE FINANCING                 143,003    (755,855)

Financing                                            9           -   1,726,743
                                                       ----------- ------------
INCREASE IN CASH                                    10     143,003     970,888
                                                        =========== ===========
RECONCILIATION OF NET CASHFLOW TO MOVEMENT IN NET
DEBT
Increase in cash in year                                   143,003     970,888
Decrease in cash on deposit in year                        (60,736)    (75,016)
Cash inflow from increase in net debt                            -   (1,726,743)

                                                       ----------- ------------
Changes in net debt resulting from cashflows                82,267    (830,871)
Non cash transactions - conversion of loan
stock                                                       44,495           -
Translation differences                                   (299,914)    (56,436)
                                                       ----------- ------------
Movement in net debt in the year                          (173,152)   (887,307)

Net debt at 1 October                                    (1,080,253)  (192,946)
                                                       ----------- ------------
Net debt at 30 September                                 (1,253,405) (1,080,253)
                                                        =========== ===========

IMPAX GROUP PLC
NOTES TO THE PRELIMINARY STATEMENT

1 Nature of the financial information

The financial information set out above does not constitute full accounts for
the purposes of section 240 of the Companies Act 1985. The financial information
has been extracted from the Company's accounts for the year ended 30 September
2004 on which the auditors, MRI Moores Rowland LLP, have given an unqualified
opinion.

2 Turnover, operating loss and net assets

Turnover relates solely to the principal activities of the Group.
                                                              Turnover
                                                           2004           2003
                                                              £              £
Analysis by  class of business and geographical
market
Europe
Corporate finance advisory and asset management
services                                              1,737,805      1,177,224

United States
Oil & gas activities                                          -          5,700
                                                     -----------   ------------
                                                      1,737,805      1,182,924
                                                    ============   ============

                                                           Operating loss
                                                           2004           2003
Analysis by class of business and geographical                £              £
market

Europe
Asset management & corporate finance advisory          (293,430)      (506,827)
Goodwill amortisation                                  (282,604)      (282,604)

United States
Oil & gas activities                                          -       (170,528)
Impairment provisions                                         -     (1,626,419)
                                                      -----------   ------------
                                                       (576,034)    (2,586,378)
                                                      ===========   ============

                                                             Net assets
                                                           2004           2003
Analysis by class of business and geographical                £              £
market

Europe
Asset management & corporate finance advisory         1,048,602      1,186,924

United States
Oil & gas activities                                          -      2,492,123
Loans receivable                                      2,229,344        462,944
                                                      -----------   ------------
                                                      3,277,946      4,141,991
                                                      ===========   ============


3 Exceptional Items

                                                          2004            2003
                                                             £               £
Impairment in value of Nukern oil field                      -       1,626,419
                                                     ===========   ============

During 2004, the Group disposed of the Nukern oil field. During 2003, the
Directors reviewed the value of this asset and adjusted its carrying value to
US$4,000,000 (£2,400,528). This adjustment was based on the Directors' belief
that any disposal arrangements were likely to include deferred terms based on
long-term production.


4 Tax on loss on ordinary activities

                                                    2004                 2003
                                                       £                    £
UK corporation tax                                     -                    -
US corporation tax                                     -               32,741
                                                ----------           ----------
                                                       -               32,741
                                                ==========           ==========

No liability to current year UK corporation tax arises on the results for the
year. The Group has tax losses of £3,294,424 (2003: £2,901,688) available for
offset against future taxable profits in the UK.

The US tax liability relates to CSV Holdings Inc. a US subsidiary disposed of
during 2003.

5 Foreign currencies

The results of subsidiary undertakings reporting in foreign currencies are
translated at the average rate ruling in the accounting period (US$1.70: £1;
2003: US$1.60: £1) and the assets and liabilities at the rate ruling at the
balance sheet date (US$1.80: £1; 2003: US$1.67: £1).

6 Dividends

No dividend is proposed.

7 Loss per share

The calculation of loss per share is based on the loss for the year of £695,771
and on the weighted average number of ordinary shares in issue of 36,377,018
(2003: loss of £2,659,712 on shares in issue 35,485,764).

In order to show results from operating activities on a comparable basis, an
adjusted loss per share has been calculated which excludes goodwill amortisation
of £282,604 (2003: £282,604) and exceptional items of £nil (2003: £1,626,419)
from the result for the year.



8  Reconciliation of operating loss to net cash outflow from
operating activities
                                                         2004             2003
                                                            £                £
Operating loss                                       (576,034)      (2,586,378)
Impairment provisions                                       -        1,570,545
Depreciation and depletion charges                      5,949            6,161
Amortisation charge                                   282,604          282,604
Increase in debtors                                   (73,032)        (267,072)
Increase in creditors                                  11,401          118,546
                                                     ----------       ----------
Net cash outflow from operating activities           (349,112)        (875,594)
                                                     ==========       ==========

9  Analysis of changes in cashflows during the year

                                                         2004             2003
                                                            £                £
Returns on investments and servicing of finance
Interest received                                      66,612           20,382
Interest paid                                        (104,914)         (54,864)
                                                     ----------       ----------
                                                      (38,302)          34,482
                                                     ==========       ==========

Taxation
Tax paid                                              (32,741)               -
                                                     ----------       ----------
                                                      (32,741)               -
                                                     ==========       ==========

Capital expenditure and financial investment
Payments to acquire tangible fixed assets             (12,903)          (4,525)
                                                     ----------       ----------
                                                      (12,903)          (4,525)
                                                     ==========       ==========

Acquisitions and disposals
Net proceeds from disposal of subsidiaries            332,755           22,159
Repayments received                                   182,570           61,571
                                                     ----------       ----------
                                                      515,325           83,730
                                                     ==========       ==========

Management of liquid resources
Cash held on deposit to support oil activities         60,736           75,016
                                                     ==========       ==========
                                                     ==========       ==========

Financing
Repayment of working capital loan                           -       (1,228,520)
Increase in working capital loan                            -          655,263
Proceeds from Convertible Loan Stock                        -        2,300,000
                                                     ----------       ----------
                                                            -        1,726,743
                                                     ==========       ==========


10  Analysis of changes in net funds

                1 October 2003  Cash Flow    Translation Non Cash   30 September
                                            Difference                    2004
                            £           £            £          £            £

Cash at bank
and in hand         1,159,011     143,003     (299,914)         -    1,002,100
Cash on
deposit                60,736     (60,736)           -          -            -
Debt due after
one year           (2,300,000)          -            -     44,495   (2,255,505)
                   ----------- ----------- ------------ ---------  ------------
                   (1,080,253)     82,267     (299,914)    44,495   (1,253,405)
                   =========== =========== ============ ========== ============

11  Reconciliation of movements in shareholders' funds

                                                    2004                  2003
                                                       £                     £
Loss for the financial year                     (695,771)           (2,569,712)
Conversion of Loan Stock                          91,434                     -
Translation adjustments                         (259,708)             (318,612)
                                            -------------         -------------
Net reduction in shareholders' funds            (864,045)           (2,978,324)
Opening shareholders' funds                    4,141,991             7,120,315
                                            -------------         -------------
Closing shareholders' funds                    3,277,946             4,141,991
                                            =============         =============
                                                 

Copies of the report and accounts of the Company for the year ended 30 September
2004 will be available on the Company's web site www.impax.co.uk and may be
collected from the Registered Office. Copies will be sent to shareholders.

Registered Office:
Broughton House
6-8 Sackville Street
London W1S 3DG

For further information please contact:

Keith Falconer                                                   020 7434 1122
Impax Group plc
Robert Luetchford or John Webb                                   020 7490 3788
Marshall Securities Limited




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