Apq Global Regulatory News (APQ)

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:

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:

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.