Imperial Innovations Group Regulatory News (IVO)

London, UK, 14 June 2016

Edison issues outlook on Imperial Innovations

The breadth and depth of Imperial Innovations' investment portfolio was showcased at its Capital Markets Day, with a focus on six companies. Investor focus is keenly on Circassia's impending CAT-SPIRE Phase III results, anticipated this quarter. Circassia represented c 22% of portfolio NAV at end-HY16, hence this binary event will affect near-term portfolio NAV. Nevertheless, with portfolio momentum gathering and a number of material near-term milestones drawing nearer, the potential for valuation creation beyond Circassia is becoming more visible.

Innovations' shares trade at a c 34% premium to our estimated FY16e NAV of 321p/share (at 31 July 2016). We believe this is a relatively modest premium based on historical performance and the prospect of significant value uplifts over the next few years as a result of investment across a range of maturing unquoted companies, which have the prospect of revaluations of their carrying value and upcoming catalysts.

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