APQ Global Ltd (LON:APQ) has revealed a maiden first half net profit since listing in London in August 2016, despite the emerging markets income trust seeing its book value dip over the period.
Reporting interim results for the period from January 1 to June 30, APQ said its net profit for the period was £524,208, while its book value at the period end was £76.4mln, a slight decline from the £77.4mln seen at the start.
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On a per share basis, the company’s book value as at June 30 was 97.82p, down from 99.15p on January 1.
APQ pointed out that, in the period covered by the results, its share price has consistently traded at a premium over actual book value. In afternoon trading today, APQ shares were steady at 103.0p.
The group declared a further 1.5p dividend after the period-end, with payouts for the period totalling 2.0p per share.
Emerging markets generally have performed well
In the statement, APQ’s chairman Wayne Bulpitt said: “Our first year as a listed company saw us deliver our objective of stable income against an ever-changing market backdrop and emerging markets generally have performed well.
“As we look forward to our second year, we are confident that our approach and focus on income continues to hold us in good stead."
He added: “Despite clear challenges on the horizon, our advisory board has identified some very compelling opportunities in specific markets.
“To reiterate, we are not bearish across emerging markets and in fact, we firmly believe in the long-term structural arguments for emerging markets growth and expect the bull run to continue for the remainder of the year.
“However, we are mindful of the risks and therefore taking a very considered view on selecting the right opportunities to deliver our objectives and achieve stable income.”
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On August 15, APQ revealed it had raised just over £20mln through a convertible loan issue backed by major shareholder Old Mutual.
Some £20.1mln CULS were issued with a coupon of 3.5% and a conversion price of about 105.4p, a 10% premium to the then book value of 95.8p.
In June, APQ had said it was mulling a fund raise of between £20mln-25mln.