Underlying operating losses in the business were cut by £3m to £1

Underlying operating losses in the business were cut by £3m to £1.9m as it benefited from a reduction in running costs. “Our key objective is to return the flagship store to profitability, something we believe we are close to achieving,” he said.But the bottom-line pre-tax loss of £15.5m compares with pre-tax losses of £4.3m for the same period a year ago.. Shares in Vernalis surged 64 per cent yesterday after the little biotech company said its new prescription drug for migraine was selling much faster than expected. Analysts had forecast only modest sales for the drug, partly because one marketing partner, Elan, is in the throes of a financial crisis, and partly because Frova is the sixth similar migraine treatment to join the crowded US market.Vernalis, whose losses narrowed to £9.0m in the six months to 30 June, said it expected to launch Frova in Europe before the end of the year and would raise additional cash by licensing the drug for launch in Japan and the rest of the world.Mr Mansfield said: “We have demonstrated we are able to raise money from other sources.

This company hasn’t raised money from the equity markets in the last five years. We believe the company’s need for further funding has been substantially reduced and we have no plans to undertake a public equity offering.”The shares, which had lost 86 per cent of their value this year, bounced 19p to 48.5p, valuing the company at £21m.. Axa investment Managers, the asset management arm of the world’s largest insurer, is reducing its London operations as it transfers its European and global funds business to another division. Axa IM employs about 300 people in the UK.About £3.5bn of European and global funds, which represent 9 per cent of the UK business’s £48bn funds under management, are being transferred to Axa Rosenberg, a separate division of Axa IM.It says it is in negotiations with staff over redundancies, but it hopes to find redeployment opportunities for some within the Axa group.Axa IM’s chief investment officer, Roy Gillson, leaves immediately. Chris Cheetham, chief investment officer for the global Axa IM business, will take over running investment strategy in the UK Stuart Fowler will stay as head of UK equities.

The UK arm of Axa IM will now focus on UK equities and fixed interest funds. Investors will still have access to European and global funds, but as of June, Axa Rosenberg will manage these funds.The UK business has been under review for the past few months. “This is not about cost-cutting or investment performance,” Mr Cheetham said. “This is about recognising that in today’s environment you have to be able to deliver excellent performance and be very focused. We believe our customers will respond favourably to the changes.”Axa Rosenberg has offices in London, San Francisco, Tokyo, Singapore and Frankfurt. The £3.5bn funds currently run through London will be divided between these locations.. The price war in the broadsheet newspaper market is to ease further from next week as The Times becomes the latest title to raise its cover price.