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Finance Costs Following an IFRS IC agenda decision in May 2016 on the application of IAS 20 `Government Grants,` the Company has changed its accounting policy regarding charitable funding arrangements from the Wellcome Trust and US Not for Profit organisations. See Note 1 – `Change in accounting policy.` Finance costs relate to the subsequent re-measurement of the financial liability recognised in respect of funding arrangements and the unwinding of the discounts associated with the liabilities. Finance costs decreased by 0.3 million to 0.2 million for the three months ended 31 October 2016 from 0.5 million for the three months ended 31 October 2015 (adjusted). Finance costs decreased by 0.1 million to 0.7 million for the nine months ended 31 October 2016 from 0.8 million for the nine months ended 31 October 2015 (adjusted). Cash Flows Operating Activities For the nine months ended 31 October 2016, the Company generated 17.9 million in cash from operating activities. This compares to net cash used in operating activities of 11.2 million for the nine months ended 31 October 2015. This net movement of 29.1 million was driven by the receipt of a 32.9 million upfront payment received as part of the exclusive collaboration and licensing agreement entered into with Sarepta. This was offset by an increase in research and development expenditure and general and administrative expenditure during the nine months ended 31 October 2016, offset by a 1.6 million increase in the amount of research and development tax credit received during the nine months ended 31 October 2016, which totalled 3.0 million. Investing Activities Net cash used in investing activities for the nine months ended 31 October 2016 and the nine months ended 31 October 2015 includes the net amount of bank interest received on cash deposits less amounts paid to acquire property, plant and equipment.

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