Dowgate Capital (DGT) are sitting in the middle of a goldmine! This company through their sole trading arm City Financial Associates are looking to take full advantage of the "booming" AIM market this year. Dowgate provide NOMAD (NOMinated ADvisor) services to AIM companies and also have full Corporate Broker status which means that they can fund placements on behalf of the companies they represent.

Website: www.cityfin.co.uk

On first sight, the fact that Dowgate exist in the often veiled financial services sector makes you think twice about investing in company such as this because it would be impossible to understand what they were doing - however, think again! DGT bring new companies to the AIM (Alternative Investment Market). For each new company "floated" on AIM, they take arrangement fees when acting as NOMAD. After the company is launched then for a nice steady earner DGT get another healthy chunk of cash every year for looking after them (note that all AIM companies must have a nominated adviser - thereby securing a ready source of recurring income). Because DGT also act as a Corporate broker they can get a very healthy percentage for arranging placement of shares with insititutions before a new company floats. In addition, because placements come outside the sphere of yearly NOMAD work, they can also gain healthy percentages of placements which companies may need to make throughout the year when they need a quick injection of cash to speed growth. Current NOMADships: 28 companies represented (gives recurring income of approx 480,000 per year) Current on-going Brokerage agreements: 19 companies (income depends on placements) For flotations, depending on the size of a company, fees charged will be anything from 50,000 to 100,000+ For placements (the real earner), DGT get anything from 3% to around 12% of the TOTAL AMOUNT RAISED - For example a new company raising 3M though a placement will earn DGT anything from 90,000 to 360,000 ! These figures are indicative as actual deals all differ due to circumstances and DGT sometimes take payment in shares - they still have a tasty chunk of Setstone shares and when this Russian exploration company comes back to AIM, predictions are that the share price will rocket. Note that the amount that this little company can earn in fees is huge and every new deal that comes through we know will contribute another healthy chunk into the bottom line. The good news with every new floatation means that it's another chunk of recurring revenue which could go on for years, with DGT having to do very little. New clients gained in 2005 are: Mediazest (NOMAD & broker) Elite Strategies (NOMAD) Process Handling (NOMAD) Poland Investment Fund (NOMAD) Nanotech Energy (NOMAD & broker) Archimedia Ventures (NOMAD & broker) Red Leopard Holdings (NOMAD) Alba Mineral Resources (NOMAD & broker) Intandem Films (NOMAD & broker) Motive Television (NOMAD) IncaGold (NOMAD) Sportswinbet (NOMAD & Broker) Infoscreen Networks (NOMAD & Broker) Mark Kingsley (NOMAD & Broker) Croatia Ventures (NOMAD & Broker) Pantheon Leisure (NOMAD) Firenze Ventures (Ofex Advisor) FlightStore Group (NOMAD & Broker) Euro Capital Projects (NOMAD) Pearl Street Holdings (NOMAD) Worldwide Natural Resources (Ofex Advisor) Dovedale Ventures (Ofex Advisor) Other 2005 work completed:Neptune-Calculus VCT offer for subs of up to 12 million Advisory work for TGM on London Bus disposal for 20.4M Advisory work for Creightons on property disposal Advisory work for Hampton Trust on company restructuring Advisory work for Interbulk Investments on acquisition of Inbulk Advisory work for Fundamental-e Investments on two disposals Advisory work for Designer Vision re: Design Rights against Centurion Electronics Click Here for fundamentals and profit projections.

I am interested in the feedback from TR that he would have been looking at the figures on his return from holiday yesterday. You get the picture that he and his team have been so busy earning their corn that they possibly know less than the gurus on this bb; OG, PTH and sd! If he didn't know there are unliely to have been leaks from the company. Major investors, including funds, will look upon bb's such as this with disdain. I can't see us being disappointed with the figures. I can see the big buys being surprised though. Has Snakey got any good new jokes from Ireland?

Eric

andy

My current projections show 1,008,750 net profits after tax for full year - marked down a touch since my last announcement due to a couple of lost clients and expecting less than half the result in H2 (317,125) that I reckon we have in the bag for H1 (691,625) - which with 619m shares in issue gives a full year EPS of 0.16p. At the current SP of 0.69p that's a PE of 4.3. Re-rate that to a PE of 12 (conservatively) and you get an SP of 1.92. That'll do me nicely for this year!

sd

Eric, Oi moit have. try this one for starters.
Work Experience:

Eric Robson, a young university graduate, decided to see a little bit of the world and try a few different things before he took his rightful place in the upper echelons of the business world.

Looking through the national newspapers, he saw an advert for a sheep shearer and general handy person required in the outback of Australia, which he duly applied for and, to his great surprise and delight, was selected for the position.

On arriving at the outpost airstrip of Wankalonga, he was met by a pretty
unwholesome looking character, Tom, who was gifted with face sores, long greasy hair and an enormous beer gut. Tom, it transpired, was to be his nearest
neighbour on the farmstead and had come to the airstrip to welcome Eric and take him to his living quarters in a remote part of the farm.

Tom took the opportunity during the 2 hour drive to explain to Eric what his chores and responsibilities would be and, in conversation, told him that he (Tom)
was holding a Barbee tomorrow evening and suggested that Eric come over as it would help Richard to get to know the ways of the `Outback` people and settle in a bit.

Tom went on to explain the format for the Barbee and told Eric that these evenings usually started off with a beer or two, a bit of sex and a few more beers,
maybe a bit of music and dancing with a bit more sex and drinking, followed by the food with a bit more sex and beer and finally explaining that the evening would terminate with a massive display of sexual acrobatics with huge volumes of beer and spirit drinking and, if you were fit enough, a little bit more sex to finish off !!

Eric was astounded and couldn`t believe his luck that he`d found this Eutopia, providing all the things he`d loved at Uni, so to be polite, he said to Tom; That sounds great but what should I wear and what time should I call over, to which Tom replied; No worries at all on that score mate, wear anything and call over anytime; they`ll only be the two of us anyway !!

HI GUYS BIT OF A RANDOM QQUESTION FOR YOU ALL. IN THE U.S SEC FILINGS GIVE YOU QUARTERLY FILINGS AND ANY OTHER FINANCIAL DOCUMENTS. WHAT SERVICE CAN I USE IN THE U.K TO OBTAIN THE QUARTERLY REPORTS FROM LISTED COMPANIES? THIS WOULD BE A BIG BIG HELP

Quarterly filings are required by the various stock exchanges in US. On UK exchanges no more than half yearly reports are required. So they are not produced, excpet for large companies such as BP who are also listed in some form on US exchanges.

That's what I've always understood anyway.


sd

Anyone concerned about excpetionals, related to the old directors, that we don't know about?

Thinking about getting another million at these prices.

The old directors have a bucketful of Warrants paulo, none of which are exercisable until the SP climbs, can't think what else they might be entitled to, they certainly took as much as they could when they departed, relected in the 2004 accounts.

pth

SBL, posted this on the other board,


I had a brief chat with Tony Rawlinson yesterday. He will try to push the results out by end of the week. I gather there will not be an RNS before hand to confirm the date of the results. Could be the last chance to buy at these levels as this will quickly move with good expected profits.

SBL was right. Just e-mailed TR this morning and asked when the results would be published. He got back amazingly quickly.

His exact words were: "I hope to publish them in the next few days, but definitely before the end of August."

Just went for 500k in the end, which now takes me up to a round 1.5m.

Anyone going to own up to that sell?

not the best confidence boost after topping up ( i could only manage 50k) but it has now ticked up a little....and a clear base forming at this level....

Propose that sell of that size was "need the capital or can't wait any longer" scenario. IMHO of course !

Maybe it was a buy order that has been kicking around for a couple of days and only just been filled otherwise why the tick up?

Paulo 2: were you short changed? as only one 250K trade plus a 220K odd shortly before you reported. The 2m plus was a T so presumably a movement between MMs. All four MMs have 0.65 to 0.75p spread. The T trade masks a reasonable buying volume. Probably one of the MMs is stocking up to meet the demand and make a bit of a turn. Having said that, the trading spike in March was 20m and I anticipate that this will be dwarfed on the announcement of good figures. Woe is me! No lolly to increase my holding further and SEO continues to ease prohibiting any transfer of funds. Oh well; will have to settle for an odd 10k as the price progresses to 1.3p!

Snakey: thanks for that. However, I thought all Aussies were wankers and my real request was for an Irish joke!

Eric

Short changed, EWR? Not quite sure what you mean.

My two buys yesterday weren't exactly 500k but they do take me to the 1.5m mark.

17/08/05 09:09 0.71 250,000 O 0.65 0.73 Buy 389,093 0 0
17/08/05 09:14 0.71 237,200 O 0.65 0.73 Buy 626,293 0 0

11.00 am - 1.6m buys against 176k sells.... Suprised no movement to positive sp.

Results out out guys - it looks as though we've underestimated the operating costs!


DOWGATE CAPITAL PLC (THE 'COMPANY')

INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2005

CHIEF EXECUTIVE'S STATEMENT

Introduction

In my year end statement I was cautiously optimistic that with a healthy
pipeline of work and a focused and dedicated operational team, good progress
could be made in 2005. On 21 June 2005 I was pleased to report in a Trading
Statement that City Financial Associates Limited, (`CFA') the Company's wholly
owned operating subsidiary, had benefited from a buoyant AIM market with a
higher than anticipated number of deals being completed which, for the first
time in our brief history, has enabled us to turn the business round and make a
respectable profit. CFA's order book remains strong in relation to the size of
the team and with a stable overhead base I am confident as to the outlook for
the second half.

Financial Review

CFA has achieved a creditable result in the first half in direct contrast to
the disappointing results reported at the year-end which largely arose from the
exceptional costs incurred at that time. In the 6 months to 30 June 2005
turnover was 1,179,000 (6 months ended 30 June 2004: 510,000), overheads
(including plc running costs) were 898,000 (2004: 609,000). The increase in
overheads in the period arises partly as a result of providing for a profit
related bonus (nil in the comparative period in 2004) of which a proportion
has been paid at the interim stage. It should be noted that fixed remuneration
costs have been substantially reduced, linking overall remuneration more
heavily than previously to profit. Additionally, rechargeable costs, which are
included within both turnover and overheads and therefore have no effect on
profitability, were significantly higher in the first half of 2005.

Profit before taxation for the period was 290,000 (6 months ended 30 June
2004: loss 58,000). Cash at bank at the half year (before staff bonus payments
which were paid after 30 June 2005) was 736,000, a considerable increase on
the year-end balance which was 495,000.

Board Changes

To comply with new AIM Guidelines for Nominated Advisers issued by the London
Stock Exchange, it has been decided to make the following Board changes. I will
replace Ian Buckley as Executive Chairman. Ian will remain on the Board as a
Non-Executive Director. David Horner will leave the Board. These changes will
take place with immediate effect.

Summary

Whilst the business is small, it is stable with retainer income covering a good
proportion of fixed costs, a healthy book of work in progress and a strong
balance sheet.

My objective for the second half is to consolidate our position as an
increasingly active adviser to AIM quoted companies and to return a good net
result for shareholders for the year as a whole.

Tony Rawlinson

Chief Executive

18 August 2005

Dowgate Capital plc

Consolidated Profit and Loss Account for the 6 months end 30 June 2005

6 months ended 6 months ended 12 months to

30 June 30 June 31 December
2004
2005 2004 audited
unaudited unaudited
'000
'000 '000

Turnover 1,179 510 1,325

Operating costs (898) (609) (1,714)

Profit on disposal of 3 40 14
investments

Operating profit/(loss) 284 (59) (375)

Interest receivable 6 1 9

Profit/(Loss) on ordinary 290 (58) (366)
activities before taxation

Tax on profit/(loss) on - - -
ordinary activities

Profit(Loss) for the period 290 (58) (366)

Dividends - - -

Retained profit/(loss) for the 290 (58) (366)
period

Profit/(Loss) per share
(pence)

Basic earnings per share 0.047p (0.011p) (0.062p)

Diluted earnings per share 0.044p - -

Dowgate Capital plc

Consolidated Balance Sheet as at 30 June 2005

As at As at As at

30 June 30 June 31 December
2004
2005 2004
audited
unaudited unaudited
'000
'000 '000

Fixed assets

Tangible assets 12 22 22

12 22 22

Current assets

Debtors 428 322 340

Investments 135 102 131

Cash at bank 736 686 495

1,299 1,110 966

Creditors: amounts falling due (414) (218) (381)
within one year

Net current assets 885 892 585

Total assets less current 897 914 607
liabilities

Net assets 897 914 607

Capital and reserves

Called up share capital 1,547 1,547 1,547

Share premium account 1,615 1,616 1,615

Profit and loss account (2,265) (2,249) (2,555)

Shareholders' funds 897 914 607

Dowgate Capital plc

Consolidated Cash Flow Statement for the 6 months ended 30 June 2005

Note 6 months 6 months

ended ended

30 June 30 June

unaudited unaudited

2005 2004

'000 '000

Net cash inflow/(outflow) from 1 237 (111)
operating activities

Return on investments and servicing of
finance

Interest received 6 1

Interest paid - -

6 1

Capital expenditure and financial
investment

Purchase of tangible fixed assets (2) (2)

Net cash outflow from investing (2) (2)
activities

Acquisitions and disposals

Disposal of investments - 40

Financing

Issue of shares (net of expenses) - 439

- 439

Increase/(decrease) in cash 2 241 367


Notes to the Cash Flow Statement

1. Net cash inflow/(outflow) from 6 months 6 months
operating activities ended
ended
30 June
30 June
2004
2005
unaudited
unaudited
'000
'000

Operating profit/(loss) 290 (59)

Depreciation 9 10

Amortisation of goodwill - -

(Increase)/decrease in debtors (88) 143

(Increase)/decrease in short term (4) 98
investments

Increase/(decrease) in creditors 33 (263)

Profit on disposal of investments (3) (40)

237 (111)

2. Analysis of change in net funds

1 January Cash flow 30 June
2005 2005
'000
'000 '000

Cash in hand and in bank 495 241 736

Reconciliation of net cash flow to
movements in net funds

Net funds at 1 January 2005 495

Increase/(decrease) in cash 241

Net funds at 30 June 2005 736

Notes on the financial statements

1. The interim results for the six months ended 30 June 2005 are unaudited and
do not constitute accounts within the meaning of section 240 of the
Companies Act 1985. The interim results have been drawn up using accounting
policies and presentation consistent with those applied in the audited
accounts for the year ended 31 December 2004.

The information in respect of the year ended 31 December 2004 has been
extracted from the statutory accounts for the year which have been delivered to
the Registrar of Companies. The report of the auditors on those statutory
accounts was unqualified.

2. Tax on profit on ordinary activities

No tax charge arises based on the result for the period due to losses brought
forward.

3. Dividends

No dividend is proposed for the period.

4. Profit per share

The calculation of profit per share is based on the profit attributable to
ordinary shareholders divided by the weighted average number of shares in issue
during the period.

6 months ended

30 June 2005 30 June 2004

No of shares No of shares

Weighted average number of shares 619,000,000 506,142,851

The profit per share is 0.047p (2004: loss 0.009p) and the diluted profit per
share is 0.044p (2004 loss so no dilution)

The basic profit per share is calculated by dividing the profit on ordinary
activities after tax of 290,000 (2004: loss 58,000) by 619,000,000 ordinary
shares (2004: 506,142,851) being the weighted average number of shares in issue
during the period ended 30 June 2005.

The calculation of diluted earnings per share is based on the consolidated
profit on ordinary activities after tax for the financial year of 290,000 and
on 666,371,921 ordinary shares. This being 619,000,000 ordinary shares diluted
for the effect of 47,371,921 ordinary shares being the weighted average number
of warrants and options in issue.

In respect of period ended 30 June 2004, the loss attributable to ordinary
shareholders and weighted average number of ordinary shares for the purposes of
calculating the diluted earnings per ordinary share are identical to those used
for basic earning per share. This is because the exercise of share options
would have the effect of reducing the loss per ordinary share and is therefore
not dilutive under the terms of Financial Reporting Standard 14.

Copies of this report are available on the Company's website
www.cityfin.co.uk

and to the public at the registered office of Dowgate Capital plc at:

Pountney Hill House

6 Laurence Pountney Hill

London EC4R 0BL

A big improvement but I doubt we'll see 1.5p on these results maybe next year!!

Ah well! We can't be perfect all of the time.

Allowing say 150k of rechargeable expenses and, thus, 148k of bonus salaries on top of my estimated 600k overheads, looks like I overestimated income by about 248k (and interest less profit on investment by 6k) - a difference of 402k on the net profits. I guess the feees for advising on TGM's disposal may hvae been a lot less than the 225k I allowed. The model obviously needs adjusting - which I will do over the nexst few days and come up with s revised full year estimate.

Apologies to all who relied on my figures. At least the market seems to be showing mild approbation, up 0.04p as I write.

sd