Switch to US Dollar accounting
APQ Global (APQ) has reported results for the year to the end of December 2017. Although somewhat superseded by the subsequent Q1 2018 quarterly update and second CULS issue, we note the steady progress made during the Company’s first full year of operation. As previously flagged, APQ has switched to US Dollar accounting to report its numbers and performance in its functional currency. 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. Payment in March of the Q4 dividend meant that APQ met its targeted 6% yield for 2017. APQ issued a further £10.2 million of 3.5% convertible unsecured loan stocks (CULS) at a 3% premium to par value in January. Results will obviously reflect the evolution of the portfolios and our estimates now reflect US Dollar reporting but are little changed otherwise. They continue to be based on APQ generating sufficient income to cover the dividend, operating expenses and the CULS coupon.