Interim Results

Impax Group PLC
27 June 2002

27 June 2002

                                        Impax Group plc 
                        Interim results for the six months ended 31 March 2002 
 
Impax Group plc, the specialised financial services business providing fund
management, corporate finance and advisory services in the EIT sector today
announces its interim results for the six months ended 31 March 2002

Highlights

• Asset management division now manages/advises in excess of £70 million

• Corporate finance advisory business repositioned and now seeing new mandates
  from major corporations

• Performance of oil division confirms decision to exit the sector -now in
  negotiations regarding the Starks Field

Commenting, Stuart Bickerstaff, non executive chairman, said:

'Although we have not yet achieved overall profitability, we have passed several
important milestones and have established a strong foundation for the future
success of the Company. I look forward to reporting further progress at the end
of the financial year.'

For further information please contact:

                                                                                   
Nigel Taunt, Finance Director    020 7434 1122
Impax Group plc                               
Robert Luetchford                020 7490 3788
Marshall Securities Limited                   
 
Chairman's Statement 

This interim report provides me with an opportunity to update you on our
progress in repositioning the Company towards becoming a specialised financial
services business providing fund management, corporate finance and consultancy
services in the environmental infrastructure and technology ('EIT') sector. In
summary, although we have not yet achieved overall profitability, we have passed
several important milestones and have established a strong foundation for the
future success of the Company.

Notwithstanding the depressed state of equity markets worldwide, on 22 February
2002 we successfully completed a placing of £50m for Impax Environmental Markets
plc ('IEM'), the new investment trust which is managed by Impax Asset Management
Ltd ('IAM'). IAM now manages or advises in excess of £70m of funds invested in
the EIT sector. With a sound and profitable base of recurring income and a
higher profile in the institutional market, IAM is well positioned to extend its
franchise.

The repositioning of our corporate finance advisory business (Impax Capital
Corporation Ltd ('ICC')) to capture the benefits of new legislation in the EIT
sector is now largely complete and we have borne the associated restructuring
costs during the period. In particular, ICC has won important new mandates from
major corporations as a direct result of the recent adoption of the UK
Renewables Obligation (which lays down a renewable energy framework until 2027)
and the UK's Emission Trading scheme (which has created a market in permits to
emit gases which contribute to global warming).

The result for the half-year ended 31 March 2002 was a loss before tax of
£903,000 (31 March 2001: £146,000 profit), which represents an aggregate of
losses in all three divisions during the period. The analysis of results between
the different businesses is shown in Note 2 to the Interim Accounts. Prior to
the launch of IEM, we were bearing the costs of our asset management team
without the benefit of the IEM management fees. ICC suffered from the generally
weak demand for corporate finance advisory services, from delayed implementation
of the UK Renewables Obligation and from slippage in the realisation of specific
success fees.

We previously stated our intention to sell our oil interests and I am pleased to
report that we are in negotiations regarding the Starks Field. The performance
of our oil business has been set back by several factors, confirming our
decision to exit this sector. Output from the Starks Field has been lower than
planned, in part due to dismal weather and flooding in Louisiana. Oil prices at
Starks during the period have been relatively weak, falling from the US$23.95
per barrel average in the previous year to an average of US$15.70 per barrel in
the six months ended 31 March 2002.

In anticipation of improved performance for the Company and the realisation of
value from our oil assets, we have put in place a credit facility of £1 million,
which we utilised for the first time at the end of May.

I look forward to reporting further progress at the end of the financial year.

Stuart Bickerstaff
Chairman

27 June 2002

                                    Impax Group plc 
 
Consolidated Profit and Loss Account for the 6 months ended 31 March 2002 
 
 

                                                                                                                      
                                               6 months ended               6 months ended                 Year ended 
                                                  31 Mar 2002                  31 Mar 2001               30 Sept 2001 
                          Note 1                  (unaudited)                  (unaudited)                  (audited) 
                                                        £'000                        £'000                      £'000 

  Turnover                Note 2                          636                         418                      1,468  
  Cost of sales                                         (360)                        (309)                      (759) 

  Gross profit                                           276                          109                        709  
  Amortisation of                                       (142)                           -                        (71) 
  goodwill                                                                                                            
  Other administrative                                (1,050)                         (69)                    (1,033) 
  expenses                                                                                                            
  Exchange gain                                             1                          85                          -  

  Operating               Note 2                        (915)                         125                       (395) 
  profit/(loss)                                                                                                       
  Net interest                                            12                           21                          29 
  receivable                                                                                                          
  Profit/(loss) on ordinary                             (903)                         146                       (366) 
  activities before taxation                                                                                          
  Taxation                                                 -                          (14)                        (1) 
  Profit/(loss)                                         (903)                         132                       (367) 
  attributable to the                                                                                                 
  Group                                                                                                               

  Basic                   Note 4                      (2.54)p                        0.64p                    (1.46)p 
  earnings/(loss) per                                                                                                 
  share                                                                                                               
  Diluted                                             (2.37)p                        0.64p                    (1.44)p 
  earnings/(loss) per                                                                                                 
  share                                                                                                               
  All disclosures relate only to                                                                                      
  continuing operations                                                                                               
  Statement of Total Recognised                                                                                       
  Gains and Losses                                                                                                    
  Profit/(loss) for                                     (903)                         132                       (367) 
  the period                                                                                                          
  Currency translation                                   273                          195                          13 
  differences                                                                                                         
  Total recognised                                      (630)                         327                       (354) 
  gains/(losses)                                                                                                      
Impax Group plc 
 
Consolidated Balance Sheet as at 31 March 2002 

                                                                                                                      
                                                                           31 Mar 2002    31 Mar 2001    30 Sept 2001 
                                                  Note 1                   (unaudited)    (unaudited)       (audited) 
                                                                                 £'000          £'000           £'000 
  Fixed assets                                                                                                        
  Intangible fixed                                                              2,632              -           2,763  
  assets                                                                        
  Tangible fixed                                                                8,660          8,114           8,256  
  assets                                                                        
  Investments                                                                     215              -             215  
                                                                               11,507          8,114          11,234  
  Current assets                                                                                                      
  Debtors                                                                         333            232             360  
  Cash at bank and in                                                             329          1,058           1,038  
  hand                                                                        
                                                                                  662          1,290           1,398  
  Creditors - amounts falling due within one year                                (632)          (325)           (478) 

  Net current assets                                                               30            965             920  

  Total assets less current liabilities                                        11,537          9,079          12,154  

  Creditors - amounts falling due after more than one                            (701)          (740)           (678) 
  year                                                                                                                

  Total net assets                                                             10,836          8,339          11,476  

  Capital and reserves                                                                                                
  Called up share                                                               8,871          5,750           8,871  
  capital                                                                        
  Share premium                                                                   687              1             697  
  Merger reserve                                                                2,198          2,198           2,198  
  Exchange                                                                        511            430             238  
  equalisation reserve                                                                        
  Profit and loss                                                             (1,431)           (40)           (528) 
  account                                                                        

  Equity shareholders' funds                                                   10,836          8,339          11,476  

                                              Impax Group plc 
 
                    Consolidated Cash Flow Statement for the 6 months ended 31 March 2002 

                                                                                                                      
                                                                  6 months ended          6 months ended   Year ended 
                                                                     31 Mar 2002             31 Mar 2001       30 Sept
                                                                                                                 2001 
                                                     Note            (unaudited)             (unaudited)    (audited) 
                                                       1                                                              
                                                                           £'000                   £'000        £'000 

  Cash (outflow)/inflow from operating activities                          (533)                     67         (504) 

  Returns on investments and servicing of finance                                                                     
  Interest received                                                          15                      26           49  
  Interest paid                                                              (3)                     (5)         (20) 

  Capital expenditure and financial investment                                                                        
  Purchase of tangible fixed                                               (188)                   (500)      (1,026) 
  assets                                                                    
  Capitalised acquisition                                                     -                       -         (259) 
  costs                                                                    

  Cash acquired on acquisition                                                -                       -          175  

  Tax paid                                                                    -                     (14)           -  

  Net cash outflow before financing                                        (709)                   (426)      (1,585) 

  Financing                                                                                                           
  Ordinary share capital                                                      -                   2,875        4,715  
  issued                                                                    
  Share issue costs                                                           -                    (139)        (316) 
  Other loans                                                                 -                       -         (500) 
  Repayment of loan                                                           -                  (1,451)      (1,517) 

  (Decrease)/increase in cash in the period                                (709)                    859          797  

  Reconciliation of net cash flow to movement in net cash/(debt)                                                      
  (Decrease)/increase in cash                                              (709)                    859          797  
  in the period                                                                    
  Cash inflow from increase                                                   -                   2,191        2,017  
  in net debt                                                                    
  Translation differences                                                  (23)                    (42)          (4) 
  Loan settled on acquisition                                                -                       -         (500) 
  of subsidiary                                                                    
  Movement in net debt in the                                             (732)                  3,008        2,310  
  period                                                                    
  Net cash/(debt) at                                                       360                  (1,950)      (1,950) 
  beginning of period                                                                     
  Net cash/(debt) at end of                                               (372)                  1,058          360  
  period                                                                    

  Reconciliation of operating profit/(loss) to net cash flow from operating activities                                

  Operating profit/(loss)                                                 (915)                    125         (395) 
  Goodwill amortisation                                                    142                       -           71  
  charge                                                                    
  Depreciation/depletion/other                                              86                      58          170  
  amortisation charges                                                              
  Exchange gain                                                             (1)                    (85)           -  
 (Increase)/decrease in                                                     27                    (108)         (85) 
  debtors                                                                    
 (Decrease)/increase in                                                    128                      77         (265) 
  creditors                                                                    
  Net cash flow from                                                      (533)                     67         (504) 
  operating activities                                                                    
Impax Group plc 
 
Notes to the Interim Accounts for the 6 months ended 31 March 2002 

1.     The financial information set out in this report does not constitute full
accounts for the purposes of Section 240 of the Companies Act 1985. The interim
accounts for the six months ended 31 March 2002 and 31 March 2001 are unaudited.
The comparative figures for the financial year ended 30 September 2001 are not
the Company's statutory accounts for the financial year but are abridged from
those accounts which have been reported on by the Company's auditors, whose
report was unqualified. The interim accounts have been prepared on the basis of
the accounting policies set out in the annual financial statements of the Group
for the year ended 30 September 2001. The interim accounts were approved by the
Directors on 27 June 2002.

2.

                                                                                                                      
                                                       6 months ended           6 months ended             Year ended 
                                                          31 Mar 2002              31 Mar 2001           30 Sept 2001 
                                                          (unaudited)              (unaudited)              (audited) 
                                                                £'000                    £'000                  £'000 
  Turnover                                                                                                            
    Financial                                                     359                        -                    585  
    services                                                                                    
    Oil                                                           277                      418                    883  
                                                                  636                      418                  1,468  
  Operating profit/(loss)                                                                                             
    Financial                                                   (274)                       -                   (232) 
    services                                                                                    
    Oil                                                         (153)                     125                    114  
    Central costs                                               (488)                       -                   (277) 
    (including                                                                                   
     amortisation                                                                                   
     of goodwill)                                                                                    
                                                                (915)                     125                   (395) 
  Net interest receivable                                         12                       21                     29  
  Profit/(loss) on ordinary activities before                   (903)                     146                   (366) 
  taxation                                                                                                            
     

3.     Amounts denominated in US Dollars have been converted at the closing rate on 31 March 2002 of £1 to $1.43 (31
March 2001: $1.42; 30 September 2001: $1.48). The results of the US subsidiary undertaking have been translated on a
monthly basis at the average rate ruling during each month.

4.     The figures for diluted and basic (loss)/earnings per share are based on the loss attributable to the Group of
£902,606 (31 March 2001: £131,558 profit; 30 September 2001: £366,444 loss) and on the weighted average number of
ordinary shares in issue during the period of 35,485,764 (31 March 2001: 20,532,967; 30 September 2001: 25,074,065).

     The calculation of diluted (loss)/earnings per share is based on the weighted average number of shares
outstanding adjusted by the dilutive share options. These adjustments give rise to an increase in the weighted
average number of shares outstanding to 38,145,858 (31 March 2001: 20,532,967; 30 September 2001: 25,496,197).

5.     No dividend is proposed.

Copies of this interim statement will be sent to shareholders and are available free of charge from the Company's
registered office, Broughton House, 6 - 8 Sackville Street, London W1S 3DG.
 



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