Interim Management Statement

Impax Environmental Markets Plc (the 'Company') Interim Management Statement For the four months ended 30 April 2008   This interim management statement covers the period from the 1 January 2008 to 30 April 2008, and is prepared in accordance with the UK Listing Authority's Disclosure and Transparency Rule 4.3.   Investment objective and policy   The Company's objective is to enable investors to benefit from rapid and sustained growth anticipated in the markets for cleaner or more efficient delivery of basic services of energy, water and waste ("Environmental Markets").  Investments are made predominantly in quoted companies which provide, utilise, implement or advise upon technology-based systems, products or services in Environmental Markets, particularly those of alternative energy and energy efficiency, water treatment and pollution control, and waste technology and resource management.   Performance   During the period from 1 January until 30 April 2008, the Company's diluted Net Asset Value ("NAV") fell by 3.6% from 128.3p to 123.7p, representing a modest outperformance versus the MSCI World Index and the MSCI World Small Cap Index, which fell 5.1% and 5.0% respectively during the period (both priced in pounds sterling).  The shares have continued to trade at a modest premium to NAV for the majority of the period.   The first four months of the year were characterised by increased economic uncertainty, with mounting losses in sub prime mortgages significantly constraining liquidity in the financial markets.  This has compounded already slowing economic growth, leading to fears of imminent or actual recession in the US, and thereafter in the broader global economies.   Economic uncertainty has led to increased market volatility, especially in January, which saw broad market weakness, redemptions in equity funds and a general move into larger companies.  Against this backdrop, the Manager is pleased to be able to report a robust performance, which again demonstrates the strength of the Company's investment proposition.   Material Events   There have been no material events during the period.  The Manager has increased weightings in quality companies with strong fundamentals, management and balance sheets, where market weakness has created attractive buying opportunities.  Conversely, the Manager has reduced weightings in companies that have performed well.   The portfolio composition has not changed materially since 31 December 2007.  The top ten holdings as at 30 April 2008 are set out below.   Company Activity Weighting Ormat Geothermal Power 2.56% Itron Automated Meter Reading 2.40% Clean Harbors Hazardous Waste 2.37% Chloride Uninterruptible Power Systems 2.34% Gamesa Wind turbines and projects 2.28% Regal Beloit High efficiency electric motors 2.20% Vestas Wind turbines 2.11% Pentair Filtration 2.10% Mayr Melnhof Recycled carton board 2.08% Vacon Variable speed drives 2.07%   Outlook   The Q1 2008 earnings season is now well underway and has overall been positive for portfolio companies, with several companies beating expectations and only isolated earnings disappointments.  The Manager and the Directors continue to believe that the portfolio valuation of around 17x PE (next twelve months) is attractive relative to growth expectations of > 20% for the next 12 months.   The interim management statement will be made available on the Manager's website www.impax.co.uk     7 May 2008   ---END OF MESSAGE---
UK 100

Latest directors dealings