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.

ewr i think your right there m8 been with this for some time now and imho i think its a gower but it will take its time
sb has always said no news till its in stone
so i dont see why the so called investers prattle on about no news

as repeorted they have 20 companies tied up for yearly input(they get monies of them for there advise)

pritty good for a small company imho

sit back eat some cheese drink some buckfast lifes great
roflmao

thats(rolling on floor laughing my a...off) more education

I see from RNS on friday (I think!) that Setstone announced cancellation from AIM. Are they relisting under new name or listing in different market???

We need some news now, everyone whos invested in this share has shed loads and eventualy will be rolling in it. But anyone interested in this share is going to be put off by the spread, i think once it starts moving then the interest will be huge like CYC, DANIEL STUART,but this wont happen until nearer the final results. We can only hope for a nice tick up prior and then watch them fly encouraging larger investors to pile in ie Fidelity and the likes, and we know that the finals are going to take them finaly into the black this time round and then can only go from strengh to strengh.But for now, well we need news or be it just an update from the company and a reduced spread.

The finals are not until march 2005 i think? Its a long time to wait so i hope they do come out with some contract news as the price is on the slide(imo)

somebodys learned how to do colour charts..... and lots of them too. all gone very quiet.nobody got any news?

fred? was that your 3.5million sell at 3.5 p just now?

Looks like someone decided to move on.

there was some very interesting buying today in this one

Am getting quite puzzled by this share. Why are people jumping ship? OK, some just get impatient; I tend to do that myself. But, hold on for a moment. Here we have some experienced city guys led by key figure in the build up of Seymour Pearce. They are working 12 hours a day to build a company focussing on the AIM market: unparalleled expertise; much in demand; probably the gurus that the fledglings can rely on to see them into the public domain; cautious accounting practices; not the time to do the pubcicity things for themselves that they do for other people ( I used to work for a consultantcy like that!). Frustrating, yes. Need to exercise patience, yes. Confidence in success and, in particular, good finals that will move the price, yes. No worries at all, yes. But walk away at this ridiculous low price - no! no! no!

Great to have this BB and I learnt a lot from it resulting in acqusition of a 10% of portfolio position. But we may have to wait until March. Is that such a problem (yes, it goes against my basic instincts!)? So what am I going to do about it - just accumulate a few more at these knock down prices as soon as I have a few pence to spare!

One thing that might be done. ptholden got a positive response from his e-mail to Stephen Barclay, I think. Anyone follow him up, in pth's absence?

Eric

1.1million came up as sells but i think they were buys looking at the price

bosley

Seems likely looking at the trades. They look a little strange generally. Looks like a forced sale of 3.5M as price is so low at 0.35p - mind, I supposse that's only 12K. MM has then spent an hour or two selling of those shares at rock bottom prices - will have pretty well cleared them by the end of the day but may still be some at 0.55p in the morning. Won't go for them myself as I have short-term prey in mind!

Eric

Hi thesaurus and others,

Today's intraday drop to 0.40-0.45 pence was because of a 3.50 Million sell that went through at 0.35 pence. It is likely that someone must have got impatient with these and decide to sell out. And when the volumes have been low like they have, the MMs do like to take advantage of the situation and hence offered the seller 0.35 pence for their holding against the indicative bid of 0.45 pence at the time. The MMs then made their profit by selling that holding of 3.50 million shares at prices of 0.44-0.52 pence. They were all snapped up.

The 500,000 and 600,000 trades reported at 0.50 pence are buys as trades over 450,000 shares are delayed in reporting by 1 hour.

I don't have a position at the moment in these but I will buying in again at the beginning of next year now. This is because a number of reasons, during this time of the year small capitalisation stocks do get ignored by investors as newsflow is weak and results are along way away. With that in mind, the MMs do discourage trading in those stocks by keeping the spread wide and hence boring holders into selling out.

I think the share price will go down a minimum around 0.35 p before it stabalises by February. The prospective results do not look promising. It does not look that they will make a profit. It has been very quiet for them imo. A number of negatives have contributed to the slide in the sp.
1. Bad management of PR. They have not helped the market enough to sustain the price with RNS etc. Alternatively this may be seen as admission that they agree with the new range of share price. In my opinion the latter is nearer to the truth. Basically the 1.5p spike was totally unrealistic.
2. Interim results were not as good as the market expected. Proof of this is the sp plumbeted after the interims.
3. The company actually is not making money. It is loosing money and I expect at best to break even this time round.
4. The loss of one of their directors has been seen as a sign of trouble. There has been no recruitment and this is a sign of tough times.
5. As a result of ramping in the other thread mainly early this year has resulted in multi-infated price which is gradually being deflated. The charts are just dreadful!

In short this is a mismanaged share and the shareholders have paid for it.

The confidence in this share is now at the lowest.

lowest price since march! no recent negative/positive news?also the arrival of two very negative posts on this thread today by Andros and Sue Helen!Previous posts have consistently been much more up beat. Whats changed?.......other than the price?

Hi willfagg, thesaurus asked me a question yesterday evening on the IQE thread about CFP. I answered the question but posted my reply on the CFP thread.

thanks for response.when do we think the CFP price will go north. The second half was supposed to be positive with some profits assured /carried over from previous period.Is it just lack of news? surprised as the guys running this seem to be pretty smart

Hi willfagg: In my opinion many large shareholders have lost confidence in the management of this company by Stephen Barcley and they refuse to hold or buy anymore due to his handling of the market which is negatively old fashioned. (Time to retire .... long overdue)

Yep, i think its time to bail out while i can still walk away with something. This share is going nowhere and the management know it. Hyped up will not post profits in March they are struggling big time.

Can we as investors call for a meeting,or have we to watch our investment go down the drain, i to have e-mailed them but they just wont respond.

SueHelen, andros

Interested in these barbed posts - in fact, they are very different. SueHelen is making a general point about small companies and the effect on them of this period of the year when no news is anticipated until the New Year. CFP is not alone in sliding in the absence of news. Sue has an argument for waiting for the New Year before she invests. The only risk is probably that Barclay does respond to ptholden's request and put something out.

Hopefully, someone else will respond to andros, even if (s)he is acting as devil's advocate. I am aware that pth is otherwise engaged but what has happened to 'overgrowth'? My searching questions were well answered a few weeks back. Has andros read the projections included there? Is he aware that the interims would have been profitable if credit had been taken for two contracts completed in July? What are they doing, working 12 hours a day, if they are not making money? Is the criticism of Barclay baked on direct knowledge? What about the two staff taken on at the time of the interim report? Why does he feel that CFP are not getting their share of the explosion of AIM business reported this morning? Is his reporting objective as it appears to have an emotive ring? Is he shorting the stock?

Eric