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.

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

thanks for your efforts stockdog and I look forward to your revised views....especially where this may be in the short term.....I am currently breaking even so may have more to lose short term.


cheers

GN

So guys what are predictions for sp by end of this year

C'mon Dead we know you're out there !

Well, turnover pretty much in line with what I was expecting (when I'm able to resurrect the old PC I'll be able to check my estimate). The overheads threw the 500k projected profit out of kilter. Will no doubt be a disappointment to many, but 300k profit is not to be sniffed out. The main element is that DGT are now profitable and an awful lot of small caps are not able to make that claim!!

pth

Got rid of mine for 0.74p at lunchtime and 16% profit.
Thought it would go down despite being a good turn-around and 500k half year was in the price and less than that delivered. Looks like a good tip in the 1st place Pete at 0.4p, good call to sell at lunchtime and I will keep on my watchlist to buy again later in the year.

A quick recalculation of where we might be at end of year.

Retainers from prior years .H1 ....157,500 H2 ...103,750 (a few clients lost half way thru)
Retainers acquired H1 '05 ..H1 ....110,125 H2 ...141,500 (2 quarters full value in H2)
Retainers acquired H2 '05 ..H1 .............0 H2 .....76,750 (less new clients than in H1)
Transaction/advice fees .....H1 ....768,375 H2 ...615,000 (~80% of H1 to be cautious)
Rechargeable expenses .....H1 ....150,000 H2 ...120,000 (pro rata to above line)
Total turnover ..................H1 .1,179,000 H2 .1,057,000

Basic Overhead ...............H1 .....600,000 H2 ...650,000 (allow additional staff + assct o/h)
Rechargeable expenses ....H1 .....150,000 H2 ...120,000 (as per above turnover amounts)
Bonus Salaries (guess) ....H1 ......148,000 H2 ....99,000 (pro rata to basic profit H2/H1)

Interest/Disposal ........... H1 .........9,000 H2 ....12,000

Net Profit ......................H1 ......290,000 H2 ...200,000

Total Net Profit for year 490,000 gives a PE of 8.53 at mid SP 0.675p

If PE might be exepcted to be at least 12, gives a mid SP of 0.95p

Of note - we lost nearly as many retainers from prior years in H1 as I expect to gain in H2 - why is that? is it a worry? Also bonus salaries may be as much as a third of operating profits - nicework if you can get it!

So, a more modest view of the world than previously, but still a good solid hold for a prospective 40% gain IMHO.

All counter views welcome.

sd

PS. Wouldn't it be nice to have proper tabs for the layout!

A question from today's interim report -

"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."

I thought separation of CEO and Chairman, not combination, was desirable. And how does one less non-exec help comply with AIM Guidelines?

Any ideas?

sd

sd - I believe it's all down to new guidelines on conflict of interests - directors of NOMADs can't also be directors in the AIM companies they represent or hold a significant stake in them.

And they presumably don't want to pay out more director's fees for a replacement for David Horner who we assume has the conflict of interest??

Eric, yes a little less than expected, but what the hell !! still a good bet.
here`s yer Oirish one and no offence intended to anyone. also, apologies for using real names, as it does help when you feel you know someone !!! here goes:

Three Leprechauns, Mick, Eugene and Pat, are sitting in the pub getting
quietly pissed when Mick shouts out, " Jaysus, I'm bored wit bein' a feckin'
nobody. I'm tinkin I'll take meself down to de Guinness Book of Records office
and get meself entered in da book"
"What da hell are ya talkin' about, ya eejit. You've dun nuttin' to getin da book
for" says Eugene.
Well, it's me hands, Eugene" replies Mick waving them around, " I tink dey are
da smallest in da world and I'm going to get meself entered into da book and I'll
be world famous."

Both Eugene and Pat agree that they are quite small hands and they all carry on
drinking quite heartily.

A little while later Pat pipes up " Ya know Mick, if youse can get into da Guinness
Book of Records for yer small hands, so can I."

The other two smirk at each other and Mick says "how can ya have da smallest
hands in the world if I've got dem, ya bloody fool ?"

Pat replies "it's not me hands, Mick it's me feet", and he takes off his boots to show
them. " I tink dat dey are da smallest feet in da world and I'm gonna get meself
entered into da Guinness Book of Records too."

The other two agree that they are quite small and with that they all go back
to their drinking.

Some time later Eugene chimes in, "well, if youse two can get into dis book of
records, I can too."

The others fall about laughing. "what da feck have you got dats so feckin' interesting?"
cries Mick. "It's me dick, Mick " he says and pulls down his breeches to show them.
They both howl with laughter as Eugene pulls out his little willy.

"Jaysus, ye've got the best chance of us all, Eugene", says Pat; "dat's da smallest
feckin' dick I ever saw" and with that they all go back to their drinking.

Later on, full to the gills , they`re heading home when out of the corner of his eye
Mick spots the Guinness Book of records office along the street.

Jaysus", he says "I'm gonna go into dat office and I'm gonna get me hands
measured" and off he staggers.
Ten minutes later he comes out with a big smile on his face waving his hands in
the air. "I did it, I did it" he says "I'm in da Guinness Book of records for da
smallest hands in da world , nobodies got smaller hands dan me" and with
that he pushes Pat forward "Go on ya eejit. See if ye have de smallest feet
in da world. Go on"
"Feck it I will " says Pat and off he staggers. Ten minutes later he comes out with
a big smile on his face, kicking his feet in the air.

"Jaysus, I'm famous." he says. "I've got da smallest feet in da world, I'm famous,
I'm famous " he yells.

With that, Eugene staggers to the office door. "I'm gonna get me dick measured"
he says, "I won't be long". The other two are waiting anxiously for Eugene to
return, but time slips by. Ten minutes turns into twenty and twenty into thirty.
Still no sign of Eugene.

One hour later the office door swings open and Eugene slouches, looking
Disconsolate. "Whats wrong ?" asks Pat, to which Eugene replies.......
Who the feckin hell is Eric Robson?

How far back do people see us dropping?

Difficult to judge Paulo. The irony is that the company has posted a profit and the SP is falling! Will take a week or so for the news to circulate and then (hopefully) new investors will be able to take stock (pardon the pun). It's a crazy world when OEP post a loss and rise 15% first thing this morning!!

pth

I'm definitely waiting until the dust settles, PT. I was thinking of trading a few around my core holding but the MMs are just giving stupid quotes this morning, especially seeing as we've just posted a 290,000 profit.