Results Round-up
Online dating group Cupid is set to launch its own app to compete with Tinderafter a limp performance in the first half of the year.
The company revealed that half-year losses grew 20% to £3m, while revenues from continuing operations fell by more than 50% to £7.2m.
Chairman George Elliott announced that the firm’s priority will be to “arrest the company’s cash burn” whilst taking into account “all options available” including selling more subsidiaries.
Following the sale of casual dating assets in July the company aspires to be cash generative by the fourth quarter of 2014, although a positive run rate for profitability will be later than anticipated.
The firm has lost a significant market share in the online dating sector, particularly to Tinder, a smartphone dating app that allows users to see and contact potential partners in their area.
Following a review of strategic options, the firm has responded to the increasing demand for instant communication by announcing the launch of a new mobile app, Tangle, which will be available in the UK from October.
The app will have a similar yet slightly different premise to Tinder, reportedly allowing individuals who “physically cross paths to connect and meet”.
Roadside assistance provider AA saw its profit fall significantly in the six months ended 31 July, as financing costs rose.
In its first set of half-yearly results since its initial public offering in June, the company said profits fell to £10.2m from £121.2m in the corresponding period in 2013, while revenues rose 1.6% to £491.7m.
AA said the decline in profit was attributable to a rise in expenses, with £138.6m worth of financing costs and £39.4m of exceptional costs contributing to a £1m year-on-year increase in cost of sales.
In a statement, the company said the rise in cost of sales was down to the “full impact of increased financing costs resulting from the refinancing put in place by the previous owners”.
"There is some distorted effect to the profit before tax due to the one-off costs of the IPO and we had a full-year interest charge from the refinancing," said group executive chairman Bob Mackenzie.
AA endured a complicated first day of trading in June when its shares lost 2.4%, but the results are likely to generate mild optimism among investors, particularly as shares have soared 28% since the listing.
“The new executive team has focused on getting to know the business in detail, assessing the business operations and infrastructure and developing the strategy for future long term growth,” said Mackenzie.
AA said that in the future it aims to capitalise on the strength of its AA brand, as well as making the right investments to enhance its service to members and customers.