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.

Can you remind me how much they paid for stake in CFP, please?

The Board of Griffin announces that on 20 December the Company bought 60,000,000
ordinary shares of 0.25p each in the capital of CFA (the 'CFA Ordinary Shares')
at 0.25p per CFA Ordinary Share for a total consideration of 150,000. Following
this purchase, Griffin is interested in 60,000,000 CFA Ordinary Shares
representing 9.7 per cent. of CFA's issued share capital.

Thanks, G2.

So Griffin are still in credit, so to speak! Excuse my cyniscism but I've noticed this before - where a firm buys a huge chunk of stock.; 3rd parties begin to "promote it" heavily and then the firm starts trickling the market...

surely this means that the price should start rising. the buys have been outweighing the sells heavily for the last couple of days

re Butane's figures, 3 of the holdings are 'duplicated' so that Seymour Pierce presumably hold some 8% of Griffin. Nevertheless, the interlocking shareholdings are interesting. This, with the passage of the Creichton assignment, appears to underwrite the CFP position.

I think there is a danger in a column like this that people pass their time by airing their concerns. We actually need to wait for some time to pass, for Rawlinson and his team to get on with their work, for the financiers to do their bit behind the scene. In the meantime, the sp will probably move for a while within a range of .25 to .35p. Very little downside from current position. Plenty of upside. If you're not in, look back at the BB history and look for signs of movement. Volumes too low for charts to mean anything. If and when it does move, it will move quickly. I have taken positions this week in SEO and MDW, two shares on exciting up-trends. So why retain a significant position in CFP (10% of portfolio)? Because the upside/downside potential is better than the criterion figure of 3/1, quite possibly significantly so. But you don't spend your time examining a budding flower by exploring its roots, do you!

Eric

Thesaurus,

If the buys have been outweighing the buys - and yet the sp falls - then one possibility is that someone is matching deals. Surely? What other explanantion do we have?
------------------------------------
Eric,

From what I've so far, I've come to respect your knowledgable posts, but maybe you are pinning too much hope on this one particular company? (Sorry, I don't mean to be rude or condescending in any way - and I hope it does come good for you and others) IMHO I don't think the sp will move significantly until we approach the March announcement - by which time I will more than likely be a holder like yourselves.

Regards,

Kus.

Sorry re last post.........
Should have written: "If the buys have been outweighing the SELLS..."

Eric,

Forgot to tell you - I'm in on Stanelco at 6.25p based on your reccommendation last night!----- Down a 1/4 on close today though unfortunately.

markus

Close on SEO at 6.38 so a 6.25 buy was very good. Topped up my CFD holding at 6.4p which gives a 5:1 gearing (normally 3:1 for smaller shares).

Let me explain my logic for holding CFP now. First, its not a matter of pinning hopes as the holding is at 10% of my portfolio level. Normally don't hold below that. Essentially, I don't agree with your assertion re March. Its not unusual anyway for companies to move quite well ahead of reults or trading statements; all it need is for buyers to exceed sellers, based on expectations. CFP will be very visible to the city community. Any contract win will bring attention from those in the know. Take creichton's, already in the public eye; if it successfully comes to market then that will be marked up as 200K (a guess) to CFP. Its a fact of life, the price will move ahead of any public announcement. Only time will tell who is right (or both wrong!) but I don't think three months is too long.

Eric

there was also a recent announcement regarding CFA and Interbulk i think.

Fair comments, Eric. Interesting that you refer to a CFD. I've only just realised you are actually refering to a "Contract for Difference"! Previously I'd thought you'd merely be miss-typing a "D" instead of a "P", if you get my drift?!!!!! If my knowledge of CF D's is correct, you must be confident that CF P has more or less bottomed out, by now? How did you manage this bearing in mind the large % spread?

On a serious note: it was my understanding that CFD's could not be traded on AIM or other small cap stocks? Whatever. I will continue to monitor, only, as I'm not TOTALLY confident in CFP just yet but what do I know! Missed out on Mediwatch, by the way. Buy price = 11p which I'm a bit uncomfortable with on a 10% spread. Stanelco was on a T+10 so time is on my side with a 4% spread.

Have a good weekend!

Kus.

These look very cheap now. Added a few the other day along with SGD and TTL. Think micro/small caps will be comming back into favour shortly.

Why these c.t. any others? Noticed that your last 2 both went up on Friday - still worth a punt, do you think?

kus

Contracts for Difference (CFD) are a method of increasing gearing. blue index trade most small cap and some AIM stocks, depending, as I understand it, on the cap. of the share. My comment above related to SEO; the cap. of CFP would be far too small. Others they couldn't handle recently were MDW and CYH. Typically, AIM stocks covered would be restricted to a 3:1 multiple. Somewhat surprisingly, as the cap. is less than 50m, they allowed a 5:1 ratio on SEO. If you would like to discuss further, I suggest you e-mail me via the Administrator and I can enlarge further, rather than bore visitors to this site who are not interested. I am still relatively a new boy and relied on johngtudor in the early days, an occasional visitor to this site.

Eric

Will do, Eric. I am newer-than-new myself to the BB's so please bear with me! Thanks.

WHAT THE HELLS ALL THAT ABOUT!!
60 MIL SOUNDS FAMILIAR!!

Does anyone know anything about the massive sells today?

WT

Two trades selling 110 million shares! That's 17.5% of the share capital. Whilst appears negative, there must be a buyer taking them up because you can't see the MMs taking them on board. They will then need to be declared through an RNS.

Eric

EWRobson: Something is going on for sure. I'm totally intrigued!

Hav'nt got any nails left with this one !