24th Mar 2015 11:04
LONDON (Alliance News) - Castle Street Investments PLC, the former dating company that's now looking for a new operating business, Tuesday said it is looking over potential investments and is weighing up a return of cash to shareholders.
"The company has now transitioned from an online dating company into a well capitalised investment vehicle. We are beginning to review selective opportunities that meet our investment criteria, and are considering a combination of cash returns and finding an attractive investment opportunity to propose to shareholders," Chairman Bill Dobbie said in a statement.
Formerly known as Cupid PLC, the company agreed the sale of its remaining dating business to Tradax IP Licensing Ltd, Together Networks Holdings Ltd, and Together Networks Ltd for GBP3 million in December 2014.
"I am pleased to be able to say that we now expect to close 2015 with a net GBP20 million available for investment and/or return, GBP2 million better than anticipated," Dobbie said.
The chairman said the company is also going ahead with plans to reduce its share capital, a move which is expected to be heard by the Scottish Courts at the end of April. If successful, Dobbie said, that process will create about GBP19 million in reserves that can be distributed.
"No dividend is proposed in respect of 2014 at this point but, subject to appropriate investment opportunities, we anticipate bringing a proposal to shareholders for an initial distribution, probably by way of a tender offer, before the end of December 2015," Dobbie said.
Castle Street reported a GBP10.6 million net loss in 2014, compared with a net profit of GBP14.3 million in 2013.
Castle Street shares were up 7.7% at 21.00 pence on Tuesday morning.
By Samuel Agini; [email protected]; @samuelagini
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