REG - APQ Global Limited - Company Update

APQ GlobalAnnouncement

07/02/2025 07:00

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RNS Number : 2522W  APQ Global Limited  07 February 2025

APQ Global Limited

 

("APQ Global" or the "Company")

 

Company Update

 

The new US Administration has taken the sledgehammer to international aid and
foreign assistance more broadly.  While the immediate cashflow implications
are manageable for Delphos, the core driver of the Company's performance, it
has created a very challenging environment. The Company believes that through
a combination of cash flow generation and a partial refinancing, it expects to
meet its obligation to repay the CULS holders by no later than 31 March 2025,
but the risk to this has meaningfully increased. The refinancing is required
to satisfy the CULS repayment and the Company continues to engage with
multiple parties and discussions with regards to a potential full or partial
refinancing remain ongoing. The outstanding principal amount due to CULS
holders is currently £26.1 million.

 

On the capital raising front, Delphos is currently executing 44 capital
raising mandates (versus 47 as at 23 December 2024). Seventy five percent
(75%) of Delphos' pipeline revenue is dependent on US Government agency
departments and developments announced by the new US Administration casts
uncertainty on the timing of realising the expected cashflows. At this stage,
these contracts remain fully in place and the only immediate impact is a
slowdown in execution, as no explicit policy changes have yet been
implemented. The pipeline is well aligned with the policy initiatives of the
new US Administration (critical minerals, infrastructure and security
considerations) and the Company expects a significant increase in US
Government support for these projects, however, it remains to be seen how fast
existing transactions will be executed and the timing of the receipt of fees
and commissions.

 

The US policy framework remains extremely fluid and unpredictable, and
circumstances can change quickly. As a result of executive orders signed by
the new US Administration, Delphos saw an immediate pause on two-thirds of its
transaction advisory contracts, which have now been cancelled (representing
c.$5.0million in contract value). The remaining transaction advisory contracts
are expected to be cancelled in the coming weeks. These contracts were being
executed and have been aborted. The immediate cashflow impact, while material,
is so far manageable but we remain cognisant of potential further damage
beyond the cancellation of existing transaction advisory contracts.

 

Delphos has made a hard pivot away from official financing sources towards
private sector funding over the past six weeks and expect meaningful cash
generation in the very near term. While the Company believes that it is
well-placed to execute these transactions, the overall policy environment in
the US and the reaction of other countries to it will continue to provide
significant challenges.

 

In terms of the expected revenue, the table below shows the realised cashflows
for December 2024 and January 2025 and management's revised estimates based on
the status of the deals in execution, compared with the estimates disclosed in
its trading update contained within the interim results published on 29
November 2024 and reiterated in the Company's book value announcement on 23
December 2024:

 

 $               Realised Cash Inflows (December 2024 - January 2025) and Revised Estimate     Previous Estimate (29 November 2024)
                 (February 2025 - September 2026)
 December 2024                                          614,000                                                     2,732,439
 January 2025                                           487,000                                                     16,200,000
 February 2025                                          14,520,000                                                  16,500,000
 March 2025                                             11,119,000                                                  4,300,000
 April 2025 - September 2026                            60,672,000                                                  73,840,000
 Total                                                  87,412,000                                                  113,572,439

 

As detailed above, the ongoing impact of the new US Administration has given
rise to greater uncertainty which may continue to impact near-term expected
cash inflows.

 

 

In the medium term, the Company believes its prospects remain solid and
expects the transaction advisory business to bounce back when the US
Government reassesses its priorities. On the capital raising side, borrowers
are likely to be amenable to accept higher borrowing costs and the Company
expects to draw in more private sector capital.

 

At the end of January 2025, the Group held approximately $3.2 million in cash
versus $4.4 million at the end of November 2024 reflecting payment delays and
seasonal factors.

 

The Company expects to publish its book value as at 31 December 2024 by the
end of February 2025.

 

- End -

 

 

For further enquiries, please contact:

 

 APQ Global Limited                                     020 3478 9708
 Bart Turtelboom

 Singer Capital Markets - Nominated Adviser and Broker  020 7496 3000
 James Maxwell/Sam Greatrex

 Suntera - TISE sponsor                                 01481 737 277
 Claire Torode

 Investor Relations

 IR@APQGlobal.com

 

Notes to Editors

 

APQ Global Limited

 

APQ Global (ticker: APQ LN) is an investment company incorporated in Guernsey.
The Company focuses its investment activities globally (in Asia, Latin
America, Eastern Europe, the Middle East, Africa and the Channel Islands,
particularly). The objective of the Company is to steadily grow its earnings
to seek to deliver attractive returns and capital growth through a combination
of building growing businesses as well as earning revenue from income
generating operating activities in capital 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. For more information, please visit apqglobal.com
(http://www.apqglobal.com/) .

 

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