29 May 2013 – statement re: share price movement and trading update
Following a rally in Cupid’s share price the company has confirmed that it is in talks which may lead to an offer being made for its casual dating business. However, the market is likely to focus on the fact that a weak trading update has also been detailed. Although revenue is expected to be 13% higher than in the same period a year earlier, lower profit is anticipated. It is likely that there will be volatility in the near term and this is clearly one for those willing to accept a high level of risk. Given the potential upside over the longer term we move to a HOLD rating.