Final Results

Impax Environmental Markets PLC
18 March 2004

Impax Environmental Markets plc

Preliminary announcement of results for the year ended 31 December 2003




CHAIRMAN'S STATEMENT

I am pleased to report that, since my last statement as part of the Interim Report 2003, Impax Environmental Markets
plc ('IEM' or 'the Company') has continued to recover well. This reflects a significant recent improvement in the
financial performance and outlook of the majority of companies operating in the Environmental Markets sector, which has
occurred against a backdrop of rising global equity markets.



Performance and Current Status
During the year, the net asset value ('NAV') rose 21.9% from 54.40p to 66.29p, while the share price rose 21.3% from
45.75p to 55.50p. This result represents an outperformance over the MSCI World Index, which rose by 17.6%.



The outlook for Environmental Markets is currently positive, with environmental issues continuing to feature
prominently in the news and policy agenda. In the UK, for example, we have seen the Government respond to concerns from
the financial community and extend the Renewables Obligation, that provides a subsidy for electricity generated from
renewable sources, to 2015. In addition, we have seen new legislation to control carbon dioxide emissions, ban the use
of certain toxic materials, and reduce the pollution of groundwater. All these developments continue to create a market
in the basic services industries that favours the providers of cleaner and more efficient solutions such as the
companies in the IEM portfolio.



Financial Results and Directors
In line with their focus on capturing growth opportunities, most companies in the portfolio are reinvesting the
majority of free cash and do not pay dividends. Therefore, as expected, the Company's revenue for the year was
relatively low, and after expenses and tax represented a small profit of 0.05p per share. The directors do not
recommend the payment of a final dividend.



In October, Robin Bidwell resigned as a director. On behalf of the Board, I would like to thank Robin for supporting
the successful launch of the Company and for his subsequent contribution.



Outlook
After a difficult first year for the Company, the Environmental Markets sector has strengthened considerably since
March 2003, and we are optimistic about the coming year. As power outages, energy security, water shortages and climate
change are increasingly perceived as risks in the minds of global investors, the IEM portfolio offers an interesting
diversification option for the long term.



In the meantime, the pickup in capital spending on both sides of the Atlantic is driving both growth and profitability
of many of our companies and, with a number of multinationals showing a strategic interest in the sector, we expect
corporate activity to be a further driver of value for the Company.



At the time of writing, equity markets have started the year cautiously with strong economic growth and good financial
performance of companies being weighed against the imbalances in the global economy and the continuing fall of the US
dollar. Since the year end, IEM has outperformed the MSCI World Index, which on 11 March 2004 was down 0.4% - the
Company's NAV had risen 1.6% to 67.38p while the share price had risen 11.3% to 61.75p.



The directors continue to believe that prospects for the Company remain strong, and that current valuations in the
sector are attractive.



Richard Bernays
18 March 2004




STATEMENT OF TOTAL RETURN
(incorporating the profit and loss account)
For the year ended 31 December 2003
                                                   2003                          2002
                                         Revenue   Capital   Total     Revenue   Capital    Total
                                         £'000     £'000     £'000     £'000     £'000      £'000
Gains / (losses) on  investments
- realised                                     -   (5,295)   (5,295)         -    (5,991)    (5,991)
- unrealised                                   -    11,472    11,472         -   (15,642)   (15,642)
Income                                       396         -       396       316          -        316
Investment management fee                   (86)     (256)     (342)      (92)      (277)      (369)

Other expenses                             (257)         -     (257)     (221)                 (221)

Return on ordinary activities                 53     5,921     5,974         3   (21,910)   (21,907)
before taxation
Taxation                                    (28)         -      (28)      (18)          -       (18)

Return on ordinary activities                 25     5,921     5,946      (15)   (21,910)   (21,925)
after taxation
Ordinary dividends payable                     -         -         -         -          -          -

Transfer to / (from) reserves                 25     5,921     5,946      (15)   (21,910)   (21,925)

Return per ordinary share                  0.05p    11.84p    11.89p   (0.03)p   (43.82)p   (43.85)p





BALANCE SHEET
At 31 December 2003
                                                                         2003            2002
                                                                        £'000           £'000

FIXED ASSETS
Investments at market value                                            32,892          26,710

CURRENT ASSETS
Income receivable                                                          24              13
Sales - future settlements                                                 94               -
Taxation recoverable                                                       16              16
Other debtors                                                               9               9
Cash at bank and in hand                                                  319             560
                                                                          462             598

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Purchases - future settlements                                           (88)               -
Accrued liabilities                                                     (120)           (108)
                                                                        (208)           (108)


NET CURRENT ASSETS                                                        254             490


TOTAL NET ASSETS                                                       33,146          27,200


CAPITAL AND RESERVES

Share capital                                                           5,000           5,000
Share premium account                                                       -               -
Share purchase reserve                                                 44,125          44,125
Realised capital reserve                                             (11,819)         (6,268)
Unrealised capital reserve                                            (4,170)        (15,642)
Revenue reserve                                                            10            (15)
EQUITY SHAREHOLDERS' FUNDS                                             33,146          27,200

Net assets per ordinary share                                          66.29p          54.40p



CASH FLOW STATEMENT
For the year ended 31 December 2003

                                                                   2003             2002
                                                                  £'000            £'000

NET CASH OUTFLOW FROM OPERATING ACTIVITIES                        (231)            (222)

FINANCIAL INVESTMENT
Payments to acquire fixed asset investments                     (9,211)         (62,021)
Receipts on disposal of fixed asset investments                   9,239           13,882
Exchange losses                                                    (38)            (204)
NET CASH FLOW FROM INVESTING ACTIVITIES                            (10)         (48,343)


NET CASH FLOW BEFORE FINANCING                                    (241)         (48,565)

FINANCING
Issue of Share Capital (net of expenses)                              -           49,125

NET CASH FLOW FROM FINANCING                                          -           49,125


(DECREASE) / INCREASE IN CASH                                     (241)              560




NOTES
The revenue column on the Statement of Total Return is the profit and loss 
account of the Company.

All revenue and capital items in the above statements derive from continuing 
operations.
No operations were acquired or discontinued during the period.

The comparatives relate to the period from 7 January 2002 to 31 December 2002.

Returns per ordinary share are based on the weighted average of 50,000,000
ordinary shares in issue during the year (2002: 50,000,000). Net assets per
ordinary share are based on 50,000,000 ordinary shares in issue at 31 December
2003 (2002: 50,000,000).

The accounts have been prepared in accordance with the Statement of Recommended 
Practice for the Financial Statements of Investment Trust Companies.



Dividend
The Company's revenue profit after tax for the period amounted to £25,000. The
directors do not propose that the Company will pay a final dividend.



Financial information
The financial information set out above does not constitute the Company's
statutory accounts for the year ended 31 December 2003 as defined by section 240
of the Companies Act 1985.  The financial information for 2003 is derived from
the statutory accounts for 2003, which will be delivered to the registrar of
companies following the company's annual general meeting.  The auditors have
reported on the 2002 accounts; their report was unqualified and did not include
a statement under Section 237(2) or (3) of the Companies Act 1985.  The
statutory accounts for 2003 will be finalised on the basis of the financial
information presented by the directors in this preliminary announcement and will
be delivered to the registrar of companies following the company's annual
general meeting.



The Annual General Meeting will be held on 21 April 2004 at 4 p.m. at the 
registered office of the Company.


18 March 2004


Secretary and registered office:
Cavendish Administration Limited
Crusader House
145-157 St John Street
London
EC1V 4RU


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