Shares in online dating group Cupid (CUP) soared by over 60 per cent as the company responded to an article published in Ukraine, adding: "Cupid strongly refutes all allegations that its business model or practices and procedures are in any way fundamentally flawed, inappropriate or illegal."
Cupid's shares have been battered first by being involved in a BBC investigation and then from an article in Ukraine's Kyiv Post. This alleged that employees misled free users of its sites in order to encourage them to take out a subscription; or, in the case of customers, to extend their deal. Cupid says an independent audit of its database and processes would be completed by the end of June.
Cupid has became a target for relentless selling and this was exacerbated by the absence of ready buyers. However, Cupid is defiant. It says trading is strong, with revenue 20 per cent ahead of last year, and it has cash of £9m, even after a £3m share buy-back, first-quarter marketing spend, and a £2m deferred consideration for the purchase of a dating agency.
