Cupid proposes 'Tinder-style' dating app after limp results

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”.

As of Tuesday at 11:56, Cupid’s share price was down 2.30%.