Market falls in love with Cupid as cold feet over growth ends

INVESTORS cuddled up to dating website operator Cupid yesterday, with news that the company was proceeding ahead of expectations sending its shares up 5.5 per cent.

The company – which is rumoured to be a takeover target for US dating giant Match.com – said recent acquisitions were trading in line with plans, and that revenues and profits are “substantially ahead of last year”.

“With such rapid growth in revenues, profits and cashflows, Cupid is now delivering a financial performance that is at least one year ahead of where the Company expected to be when it floated in June 2010,” the firm, which owns sites such as benaughty.com and flirt.com, said.

Cupid has recently acquired French dating website AGL and the UK’s Uniform Dating.

Ivor Jones, an analyst at Numis Securities, said that Cupid’s shares, which have fallen in recent months, are “climbing a classic ‘wall of worry’ as investor concerns over the sustainability of the business model are gradually reduced by continued growth and successful execution of acquisitions”.

Chief executive Bill Dobbie, who co-founded the company in 2005, said: “We will end 2012 in a very strong position and we look forward to 2013 and beyond with confidence.”