2017 milestones achieved, well set for 2018
APQ Global (APQ) achieved an increase in its US Dollar book value of 4.6% in 2017 while making a total return of 9.9% in dollar terms during the year. With economic growth and commodity prices among the supports for emerging markets, APQ looks well positioned for 2018. Payment in March of the 1.5p dividend declared for Q4 will mean that APQ meets its targeted 6% dividend for 2017. APQ will switch to US Dollar presentation of its accounts – its functional currency – with its FY 2017E results. Its end-December 2017 book value was 128.11c and this had grown to 135.58c by the end of January 2018. The Company issued a further £10.2 million of 3.5% convertible unsecured loan stocks (CULS) at a 3% premium to par value in January – increasing gearing and offering the opportunity to enhance returns during 2018. We adjust estimates (which remain in Sterling until the results) to reflect the CULS issue and anticipated deployment of the proceeds.