Final Results Due In March 2005.

http://www.cityfin.co.uk
Trades over 450,000 shares are delayed in reporting by 1 Hour.

One of City Financial Associates (CFP's) main operating goals is to bring fledgling companies to the market. With the depressed stock market over the last few years many potential clients have deffered entry to the LSE. Markets have now turned and the reality of a sucession of new floatations is growing. CFP are well positioned to enjoy the rewards that will be benefited to them in this growing market place.

Why the EXCITEMENT - will here are the reasons why I think we're on a winner.

1) My motto is when it's comes to investing there are three things. Management, management and management. With any good investment - the management should be the driving force in a company. Can they cut the mustard, are they dynamic, do they have good contacts? I think so if you read the following profile.

Stephen Barclay, Executive Chairman

Stephen Barclay, aged 61, qualified as a Chartered Accountant in 1964 with Robson Rhodes before obtaining an MBA degree from Wharton Business School in 1967. In 1989, after a career during which he reorganised various companies, he established City Financial Associates Plc (formerly Clifton Financial Associates Plc) to provide corporate finance advice to small to medium sized private and public companies. In August 1998, City Financial Associates Plc was purchased by Talisman House Plc (now Seymour Pierce Group Plc) where he became group executive chairman. In December 1998, Talisman House Plc purchased an institutional stockbroker, Seymour Pierce Limited, where he became executive chairman. He resigned as a director of Seymour Pierce Group Plc and various other group companies at the end of March 2001 to found CFA Capital Group Plc. He is a director of a number of public companies including MICE Group Plc and Talisman First Venture Capital Trust Plc and is a governor of the London School of Economics and Political Science.

John Shaw, Executive Director

John Shaw, aged 54, qualified as a Chartered Accountant in 1975 with Touche Ross & Co in London. Subsequently he spent two years seconded to the Quotations Department of the London Stock Exchange returning to Touche Ross & Co to join the Corporate Finance Group until 1982. After a period as a sole practitioner, he joined Chase Investment Bank Limited in 1985, was appointed a director and founded the Equity Investment Group, formed to invest in unquoted companies. In 1990 he joined Henry Ansbacher & Co Limited as an Assistant Director of Corporate Finance. He started working with City Financial Associates Plc in early 1995 and was appointed a director in December 1996. He was appointed a director of Seymour Pierce Limited in December 1998 where he was initially Head of Corporate Finance and latterly Head of Private Equity. He resigned from Seymour Pierce Limited and various other group companies at the end of March 2001 to found CFA Capital Group Plc.

2) They have turned a 2 million loss into nearly a profit if you ignore costs for discontinuing operations - that some turn around.

3) With only small market capital of 3.83M it's feasible to suggest they could make a good profit this year as they have already got off to a good start signing more clients.

A profit of half million would give a pe ratio of 7.66

1 million a pe ratio of 3.83

1.5 million a pe ratio of 2.55

2 million a pe ratio of 1.91.

So it would only take a small profit to make this company super undervalued. Consider the possibility they could achieve a 2 million profit this year, which is the least, I expect, we could be looking at a share price of 7p. YES THAT'S 7P (An average p/e for the sector is 16.) Even with a profit of only 1 million that's still an upside of 3.5p.

3) Consider the fact that some of their clients pay their fee by way of giving large share holdings to CFP. All it would take is two or three creamy companies to give them valuable portfolio holding which they could cash in at a substantial return.

4) The IPO is sector has already increased three fold this year. More and more companies are coming into AIM and from abroad then ever before. Rules have changed where foreign companies can use a fast track scheme to get on board more quickly then ever before. I'm sure CFA Associates are well positioned to benefit with this increase in volume.

5) We could see a re-rating this year in this sector, which would be the cherry on the top.

I rest my case, to me this is a no brainer unless you want to wait for the next results for proof they have achieved profitability. If that's your cautious approach, fine but by then, you can then expect a much higher share price then now.

Major Shareholdings:
Stephen John Barclay 64,600,000 11.66%
Pershing Keen Noms Ltd 49,610,000 8.95%
John Richard Shaw 29,400,000 5.31%

RNS Number:9414C
CFA Capital Group PLC
15 September 2004

CFA Capital Group plc
Interim results for the 6 months ended 30 June 2004
CHAIRMAN'S STATEMENT

Highlights

* Nominated Adviser to 20 AIM companies - broker to 15 AIM companies

* Currently handling a number of AIM flotations and other major transactions

* Strong second-half order book - solid outlook for year

* Turnover for the period up 95% to #510,000 (6 months to 30 June 2003:
#262,000 from continuing operations)

* Losses before taxation of #58,000, (loss 6 months to 30 June 2003:
#208,000 from continuing operations)

* Currently recruiting to further strengthen team

Introduction
I am pleased to announce that CFA is now retained as Nominated Adviser to 20 AIM
companies and broker to 16 AIM companies. The company is currently working on a
number of AIM flotations and other major transactions, and as such has built a
strong order book for the second half of 2004. The fees generated by this
activity, taken together with our underlying retainer income and largely-fixed
overhead base, leaves us well-positioned for a satisfactory outcome to the year
as a whole.

Sharply reduced losses for the first half were achieved even though we had to
incur costs on two flotations that were not completed until July 2004 which
generated revenues of #225,000. These revenues were not recognised in the
results to 30 June 2004.

Turnover for the period nonetheless increased 95% to #510,000 (6 months to 30
June 2003: #262,000 from continuing operations), with losses before taxation of
#58,000 showing a marked improvement from #208,000 (6 months to June 2003 -
continuing operations).

Following the sale of CFA Securities Limited in 2003, CFA is now firmly focused
on servicing the needs of clients who are essentially AIM listed companies run
by entrepreneurs. We now have a team of eight, comprising executives and support
staff, providing corporate finance and broking advice. We are in the process of
recruiting further executives to join the team. This recruitment will ensure
client service levels are maintained as we meet the increasing demand for our
services.

In accordance with my statement on the results for the year to 31 December 2003,
CFA started the beginning of 2004 with a good pipeline of work and with a degree
of optimism that market conditions would enable these deals to be completed and
this was the case in the first quarter to 31 March 2004. However, in the second
quarter, in a number of cases transactions that we anticipated completing in the
first half have either been completed since the end of June or have been
deferred. This adversely affected our earlier expectations of financial
performance in the first half of the year.

Financial review
Despite these factors CFA achieved a creditable result in the first half.
Turnover was #510,000 (6 months ended 30 June 2003: #262,000 from continuing
operations), overheads (including plc running costs) were #609,000 (2003:
#458,000 on continuing operations) and the loss before taxation for the period
was #58,000 (6 months ended 2003: loss #208,000).

These results need to be seen in the context of our having completed the
flotation of Smallbone plc (admitted to AIM on 26 July) and Ragusa Capital plc
(admitted to AIM on 15 July). No income is taken into account in the period in
respect of these transactions, although a significant amount of the costs
relating to these flotations were incurred in the period.

CFA is now retained as Nominated Adviser to 20 AIM companies and retained Broker
to AIM 15 companies. Annualised recurring income currently totals over #340,000
representing approximately 30 per cent of total budgeted group costs, and we
anticipate that our level of retainers and this source of revenue will show a
significant increase by the year end. Our increasing base of retained clients
not only provides a source of recurring revenue but is also a prime source of
transactions.

On 27 May 2004 we announced a placing of 65 million new ordinary shares at a
price of 0.7p per share, to raise #441,340 net of expenses. As at 31 December
2003 the net assets of CFA Capital Group plc were #534,000. The impact of the
placing and the small loss in the period, has been to increase the Group's net
worth as at 30 June 2004 to #914,000, creating a sound financial base.

Current trading
We currently have a strong order book both in respect of a number of AIM
flotations and other transactions partially arising through our existing client
base. On the basis that we complete a good number of these transactions, we
anticipate a satisfactory outcome for the year as a whole.

Summary
On 31 July 2004, John Shaw stood down as a Director of CFA Capital Group plc and
all Group companies. John has worked with me for over 10 years and was a founder
shareholder of the Company in 2001. The Board thanks John for his significant
contribution and wishes him well for the future.

The Board also extends its thanks to the entire team for their efforts so far
this year.

we took a very big hit again today

Realistic we are looking at 2.50p before results and then who knows

I think people bought these cheap a while back and are taking their profit now. Basics and fundamentals look good to me with this lot and I'll hold long for now. Reasonable results come out and price drops. Thats the market and MMs for you. Patience is the key and a good, balanced portfolio. DYOR as always.

P

As i said a lot of people would have taken profits, but just read the results again, this company is outstanding and the sp will eventually reflect that.mms they KNOW!.

Looks as though the bulls are ready to overtake the bears again - the MMs have been marking the price down like crazy on titchy volumes.

Good to see the MMs are short of stock.

When the sellers have gone (probably tomorrow) we should see a healthy hike in the sp.

Taylormade, I use Taylor Mades as well. LOL.
P

At the risk of repeating myself and am really just looking for agreement. But if we simplify the figures from the Interims and attempt to project for the next six months:

Turnover excluded from Interims = 225,000
Recurring income = 170,000, (half of figure stated in Interims)
Annual Budgeted Group Costs = 1,030,000, (Extrapolated from 340,000 recurring income representing 30% of Costs)
Running costs in first six months = 609,000
Therefore costs in next six months should be approx = 421,000
Therefore Break Even Turnover required in next six months = 26,000

So, although I am probably being simplistic here, my belief is that any turnover over 26,000 is profit and judging by the 'significant' increase in recurring turnover and a 'strong order book' we must be looking at some pretty impressive Finals come next year. This year has clearly been an improvement on last year (1.2 mil), so far, so we should see a good profit.

If anyone reads these figures differently please feel free to correct.

Regards

PTH

PTH - a good approximation, though don't forget to add in the 58K loss from the half-year, giving approx 100k turnover required to break even.

More higher value transactions are expected in the second half, so we can reasonably expect turnover to increase, however even if the turnover is the same as the first half (which is the worst possible case in my view) we're looking at a healthy profit of around 400K.

The year-end profit could be anything from 400K to 1M depending on the type of deals made, all it takes is a couple of large placements as broker and a 2-3 floats and CFP will be looking a very tasty company indeed.

Over and PTH,
very good analysis and good reading. I agree with you wholeheartedly and will remain holding for as long as is necessary to shake the working world from me tail and retire to Ireland.

Overgrowth / Snakey

Thankyou for your comments, pleased to see I am in the right ballpark. Personally, I believe the company will achieve a better turnover than last year, probably at least 1.5 mil, which represents approx 900,000 profit, and that is being conservative. I for one will be happy to top up around the present low level, even better if it dips a little more, just because profit takers and MMs can't do simple maths!!

Regards

PTH

good article in shares mag saying there will be more floats in autumn and winter . our boys should be busy in the dark months, which can only be good for the finals in march. see ya soon

something else that i think is worth mentioning.the share price of cfp does seem to rise and fall in a similar pattern to cyc, as has already been mentioned. at the moment cyc is flying . now THAT would be nicwe.

bosley...thats due to a very positive RNS that ws released on wednesday regarding a large float by cyc....that is whats needed by cfa imo.

guys dont worry the share price will increase on news of completed/new deals well before christmas is over. I think we can still achieve 2p before christmas. Everybody who is going to buy just before results is making a critical mistake in my opinion. this is a guaranteed winner or as close as they come.

buy cheap sell high!

Ceratainly not worried, just toppped up again, spread is a joke though, as always, on screen at 0.60, bought at 0.71. Good luck all.

Regards

PTH

Parsonsmead, whats ya handicap!. Agree with you all and i will keep buying at under 1p. cheers.

22.6 0fficial and some of my portfolio! I had a feeling and I was right. As for the shares......I think this is a good 'un. You do your research and you makes your choice. I think CFP is OK and am in for 100k. Can't wait for results. Two deals weren't allowed for in last interims and they have turned around a big loss. Only my views and DYOR.

Taylor mades are the best clubs and if next week goes well my green fees are covered for the month! LOL

P

Bugger, dropped the price just after I topped up, never mind, will keep adding.

Pity I don't own shares in Taylor Made, obvioulsy popular, use them myself.

PTH

thats 33% down since interims so couldnt resist a late top up @ .66 . I think that late drop was for that 1 mill sell late on