Castle Street Investments, the former Cupid online dating business, has recovered slightly more cash than anticipated from its various liabilities and is continuing to weigh up its options.

At the annual meeting in Edinburgh, the board chaired by its founder and largest shareholder Bill Dobbie said it was "pleased to note that progress continues to be made in closing the various of its liabilities on satisfactory terms, thereby preserving cash for shareholders".

It added: "We continue to evaluate acquisition targets in line with our stated investment policy, as an alternative to a cash distribution to shareholders."

The directors now anticipate that the company's cash balance at December 2015, net of liabilities, is likely to be in excess of £21.5m, an improvement of £500,000 on previous estimates and equating to 30.5p per share.

The shares, which were trading at 41p a year ago but at 18p at the beginning of 2015, have recovered by almost two-thirds since the year-end results in March set out the new strategy and the likely cash position, which was then put at £20m. They slipped 1.5p to 31.5p, valuing Castle Street at around £23m.

In March Mr Dobbie said the board was "considering a combination of cash returns and finding an attractive investment opportunity to propose to shareholders".

The group changed its name in January after disposing of the rump of its online dating assets for £3m and making most of its 180 staff redundant. It had 24 UK staff and retained seven at its Edinburgh head office.