Impax Asset Management rise
Sustainable assets investors Impax Asset Management increased assets under management by 6% to £37.9bn in the first quarter, although December was weaker.
Net inflows were £797m during the quarter. This is helped by the move towards investment in sustainable assets. The management also has strong relationships with investors that take a long-term view and do not get spooked by short-term volatility in the markets. Growth in assets under management should accelerate as investor confidence returns
Peel Hunt forecasts that assets under management will reach £40.3bn by the end of September 2023. Full year pre-tax profit is expected to fall from £68.4m to £63.5m. Peel Hunt has set a share price target price of 1050p.
Serica Energy acquisition
Serica Energy is using its cash to acquire Tailwind Energy and this will make it one of the top ten oil and gas producers in the UK North Sea. Combined pro forma production guidance is 40,000-47,000 barrels of oil equivalent/day in 2023, rising to 41,000-48,000 barrels of oil equivalent/day in 2024.
The deal values Tailwind at £367m and comprises up to 111 million Serica Energy shares and £59m in cash. There is also net debt of £277m included in the deal, which will be earnings enhancing.
The group is better placed to invest in development projects. The deal adds $1.4bn of UK ring fenced corporation tax losses and $1.2bn of supplementary charge losses.
F1 disappointment for Frontier
Video games publisher Frontier Developments had a disappointing end to 2022 and it has downgraded guidance for the year to May 2023.
F1 Manager 2022 had poor sales and they were below the one million unit target. Non-gaming F1 fans were not interested in the game and the marketing strategy will have to be reassessed. Interim revenues in the six months to November 2022 will be 16% higher at £57m. Cash was £42.6m at the end of the period.
However, second half revenues will be lower than in the previous year. Full year revenues guidance has been reduced from £135m to £100m-£114m. Management is considering the future of the Frontier Foundry games label.
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