The company, which focuses on neurological and psychiatric disorders, said the improvement was a direct result of finishing the unsuccessful TEMPUS migraine prevention treatment trial.

The result of the TEMPUS study of the company's tonabersat compound was disappointing but Minster said it remained confident of the long-term potential of tonabersat in other indications.

Preclinical data suggested strongly that tonabersat could be effective in the treatment of epilepsy and neuropathic pain. It had also announced encouraging results from a Phase II trial of tonabersat in migraine with aura in October 2008.

Chairman John Russell said the company had focused closely on its cost base, making substantial reductions in its operating expenditure to achieve savings of £0.25m a year.

It had cash of £4.8m, down from £9.0 at the end of the previous first half.

Following the TEMPUS study, Minster was able to release accruals relating to the trial resulting in a positive figure for research expenses of £79,000, against previous H1 costs of £3.1m.

Minster said it was making good progress in defining a strategy to unlock the value in its two compounds, tonabersat and sabcomeline.

It has decided to seek a partner for further development of tonabersat and is preparing sabcomeline for a Phase II proof of concept study in the treatment of cognitive decline in schizophrenia.