Book Value and Market Update
6 April 2020
APQ Global Limited
("APQ Global" or the "Company")
Book Value and Market Update
APQ Global is an emerging markets growth company, incorporated in Guernsey (company registration number 62008) which is listed on The International Stock Exchange and admitted to trading on AIM.
The Company experienced very difficult trading conditions during the month of February, due to extreme market movements in emerging markets currencies, bonds and equities, while putting pressure on the outlook for its private direct investments.
During March, the Company continued to experience difficult trading conditions and volatility in emerging markets, resulting from the COVID-19 pandemic. This resulted in a further deterioration of the value of the Company's unaudited book value per share.
During this time, the Company took decisive action to mitigate further risk to the its balance sheet, de-risking its portfolio of liquid market securities, with the current portfolio comprising:
• $40.6 million of unencumbered cash;
• $4.3 million of cash equities;
• $1.3 million of cash bonds; and
• $1.3 million of tangible book value in its private direct investments.
As such, as at the close of business on 31 March 2020, the Company's estimate of its unaudited book value per Ordinary Share was 10.4 US Dollar cents*, equivalent to 8.4 Pounds Sterling pence.
The Company has met all its payment obligations to various counterparties and is not in breach of any debt covenants.
Furthermore, with the ongoing uncertainty faced by emerging markets due to COVID-19, the Board has decided to implement the following further cash preservation measures, which are intended to facilitate a smooth recovery:
• Suspension of dividends paid to ordinary shareholders until further notice;
• The management bonus scheme to be cut from 20% of profits to 10%;
• Significant cost reduction across all of the Company; and
• Move to quarterly reporting of key metrics in the Company's income statement and balance sheet, an increase from semi-annually, starting for the reporting period Q2 2020.
Bart Turtelboom, Chief Executive Officer and Executive Director of APQ Global, commented:
"This has been the most challenging environment in my career and an exceptionally difficult environment for the Company. Our first priority has been to ensure the safety and well-being our all our employees, partners and stakeholders. We have focused on maximising liquidity in the balance sheet, which was recently achieved. Having stabilised the Company's finances, management is now fully committed to exploring further opportunities in line with the Company's business strategy and investment policy. "
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For further enquiries, please contact:
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APQ Global Limited |
020 3478 9708 |
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N+1 Singer - Nominated Adviser and Broker |
020 7496 3000 |
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Carey Group - TISE sponsor |
01481 737 279 |
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Investor Relations |
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IR@APQGlobal.com
Important Notice:
*The term 'book value' herein includes the assets of APQ Global and its subsidiaries net of any liabilities. The figure in this announcement is an estimate and is based on unaudited estimated valuations in accordance with the Company's valuation policy as stated in the Company's AIM Admission Document. The Group has measured its private investments at their tangible book value. In September 2017, APQ Global Ltd issued 4,018 units of £5,000 nominal 3.5 per cent convertible unsecured loan stock 2024 ("CULS") to raise £20.09 million. In January 2018, APQ Global Ltd issued a further 1,982 CULS units at a price of £5,150 per £5,000 nominal to raise £10.21 million. The £30.3 million CULS notional has been treated as a liability for the purposes of this calculation. Additionally, on January 28th, 2020, the Group issued 1,000,000 Warrants and 268,000 Convertible Preference Shares (CPS). Under IFRS, the Warrants and the CPS are also Financial Instruments and have been accounted for per the above guidance. The Fair Value of the Warrants has been calculated using the Black-Scholes Model and taken to equity. This figure also includes the amounts awarded in accordance with the Company's Share-Based compensation scheme as adopted by the board on 19th April 2017 and accounted for in accordance with IFRS 2. Shares awarded under the scheme vest quarterly across 5 years. As of 31 March, 2020, the total shares issued under the scheme amounted to 212,625.
Estimated results, performance or achievements may differ materially from any actual results, performance or achievements. No person has authority to give any representations or warranties (express or implied) as to, or in relation to, the accuracy, reliability or completeness of the information in this release, and all liability therefor is expressly disclaimed. Accordingly, none of the Company, the Corporate Services Provider or any of its/their respective members, directors, officers, agents, employees or advisers take any responsibility for, or will accept any liability whether direct or indirect, express or implied, contractual, tortious, statutory or otherwise, in respect of, the accuracy or completeness of the information or for any loss, howsoever arising, from the use of this release. Except as required by applicable law, the Company expressly disclaims any obligations to update or revise the above estimates to reflect any change in expectations, new information, subsequent events or otherwise.
**USD Carrying Value at 31 March 2020
Notes to Editors
APQ Global Limited
APQ Global (ticker: APQ LN) is a global emerging markets income company with interests across Asia, Latin America, Eastern Europe, the Middle East and Africa. The Company's objective is to steadily grow earnings to deliver attractive returns and capital growth to shareholders. This objective is achieved through a combination of revenue generating operating activities and investing in growing businesses across emerging markets. APQ Global run a well-diversified and liquid portfolio, take strategic stakes in selected businesses and plan to take operational control of companies through the acquisition of minority and majority stakes in companies with a focus on emerging markets.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
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