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.

Up up and away.
12million eh...
Another bullish comment from Clem Chambers in "the Business" this morning, recommending 'Fiske' another Aim broker as a buy due to the very bouyant Aim sector,also mentions lots of consolidation looming. Okay he didnt mention Dgt but Birds of a feather an all that...... Lol
Stevie

anyone got any idea of what fees we will get for this one?

I've read the Neptune Calculus prospectus and can only find mention of a 20,000 for DGT as sponsor - equivalent to Corporate Advisor, I think. They do not act as broker, because all funds are raised via IFA's from individuals, not from institutional investors, who take a max. 3% commission.

So, not an enormous initial earner, but there may be corporate advice fees down the line as they make investments/acquisitions for the fund.

I must update my model (which truth to tell, I've got a little bit bored of since half-time's less than expected results - funny that!) - I haven't entered the last half dozen deals, all of which have been quite small beer, but they must be starting to add up.

Without doing the detailed sums, I estimate we still need another 400k or so in fees/commissions between now and Xmas to make a full year net profit of 500k.

Need a couple of nice Broker deals.

sd

another rise today....

Sd lets hope they don't award themselves too large christmas bonuses....or have you also now added that to your model?

lets hope the rise continues in earnings and sp at a steady pace..

GN

Glob Nom - the half year bonuses still rankle - unless they were much smaller and overheads were much higher than I estimated. I guess there will be more at Xmas and I've allowed for them on the same %age of operating profits as H1.

Chart looking good on nice regular volume. No idea where it's headed before the next retracement sets in. To get above June's EOD spike of .67p would be a nioce place to be before the next down leg. The long-term up trend, though slow, is solid, with higher lows for successive troughs in May, June, September, October. Not surprising, since we do have a profitably trading operation. Currently the lon-term uptrend is hitting 0.47 which is a tad above my average buy price over 9 market forays since March (could have done with skipping number 7 at 0.74p!!!). So my risk is all to the upside IMHO.

If they stay profitable and gradually build business, not to mention interest from RIL and other bigger boys, they will do well over 2-3 years at least - that's what I'm in for as a core holding. That said, with a certain chart pattern now established, it would not be beyond possibilities for me to dip in and out on the waves to pump up the volume a little.

Is there a demand for an update on my numbers - if so I'll do it, but will need to find time.

sd

There isn't a thread for PMK at present, but I wonder if the're taking DGT's candy.

Competition is all good, Sqidd! Presuming they are another NOMAD, what else do they do?

There are plenty of competitors squid in this area, but a lot of business to go around and PMK is not a direct competitor in the advisory sphere, PMK is the holding company for the Ofex market. Where they might become a competitor is in that several small AIM companies may feel that legislation from the EU will add to their costs and they will eventually use the alternative PMk wquotation system which will be cheaper than SETTS and the LSE offerings.

Interesting article explaining more dated yesterday, from which I post extracts below. I don't agree with all of it (bit too much of an 'ad' imho) but the mention is of three more market makers waiting in the wings for Ofex. brokers seem to be queuing up to offer the PMK alternative:

'By Garry White, stock market reporter on UK-Analyst.com

'OFEX is being heralded as the new AIM. But is this too early? Perhaps, but there is most certainly a buzz about London's most junior market that hasn't existed since the dot.com technology bubble of the late nineties and into the new millennium. A dramatic change in structure, led by an invigorated management the same team, incidentally, that built up AIM from scratch - now plan to turn OFEX into the most active smaller company market on the planet. A task that will clearly take time, but one that has seen its owner, PLUS Markets, gain wide support from the leading institutions in the City.
A market that was for so long plagued by illiquidity has been thrust to the opposite extreme, with three market makers now active and a further three waiting in the wings. A total of six market makers across such a small quantity of smaller companies is an enviable position, one that the smaller end of the AIM market can only dream of. In short, liquidity among the OFEX elite is far greater than that on AIM. Market makers are being slowly pushed out of the AIM market, with an order-driven book being taken to the fore. Again, this is a transition that will take time........
........ the story of the third tier to the true home of the equity markets is just beginning.
A markets directive, complicated by the meddlers at the EU, is making it increasingly difficult for the smaller capitalised companies on AIM to maintain a listing, without submitting to the excessive regulatory costs that are more in line with the main list of the LSE. This has created an added opportunity for OFEX. In time, it is inevitable that companies will leave AIM in favour of OFEX, due to its simpler, yet effective regulatory structure and kinder cost base. A no-go for so many investors in the past, there will surely come a day when in order to speculate on smaller companies in the UK you will have to trip the light fantastic, surrender your anti-OFEX sentiment and transact bargains on a dramatically improved market facility............
......Already a home to fanatics that have discovered the hidden and unloved gems that still hide away where so few men - and women for that matter - refuse to go, this is a market of the future.'

hawick: Many thanks for that. It's worthy of a header for a new PMK thread.

How does this affect us will it be more money for work done or less as we are broker for these.





London Town PLC
25 October 2005


25 October 2005

London Town Plc
('London Town' or 'the Company')

Proposed reduction of capital, cancellation of share premium account and share
capital consolidation

London Town today announces that it is proposing to cancel the Company's share
premium account, reduce its share capital of the Company in order to eliminate
the accumulated loss on the Company's profit and loss account and effect a share
capital consolidation.

The Company intends, conditional on the approval of shareholders and subject to
the confirmation of the High Court of Justice in England and Wales ('the Court')
to reduce the share capital of the Company by the cancellation of the Company's
share premium account, the cancellation of the deferred shares of 50p each ('50p
Deferreds') and the deferred shares of 23p each ('23p Deferreds') and the
reduction of the nominal value of each of the ordinary shares of 2p each
('Ordinary Shares') in issue by 1.95p to 0.05p, an amount sufficient to
eliminate the Company's accumulated losses ('Capital Reduction').

The Company will also be seeking approval of shareholders at an extraordinary
general meeting to increase the Company's authorised share capital, to renew the
Directors authority to allot shares pursuant to section 80 of the Companies Act
1985 (as amended) ('the Act') and to disapply section 89 of the Act. This will
enable the conversion of the Deep Discount Bonds ('DDBs') which is described
further below to take place. Further approvals to enable the Directors to do
this will be sought by reference to the consolidated share capital subsequent to
approval of the share capital consolidation.

Background
It is anticipated that, at the date the proposed Capital Reduction is approved
by the Court, the Company's deficit on its profit and loss account will be
approximately 18.7 million. This loss has arisen from the history of difficult
trading endured by the Company and would prevent the Company from paying future
dividends to its shareholders. The Company is considering its strategic options
for growing its existing business, which may include joint ventures,
acquisitions and reverse takeovers and which may, in due course, return the
Company to profitability. By eliminating the deficit on its profit and loss
account, the Company would be in a position, if it was able and thought it
desirable to pay future dividends, to pay such dividends to its shareholders.

Capital Reduction
The Company intends to implement the Capital Reduction in the manner set out
above.

The Company does not currently have sufficient share capital to eliminate in its
entirety the accumulated losses of 18.7 million. In order to eliminate the loss
the Company must first increase its issued share capital. The Horizon Charitable
Trust, which holds approximately 95 per cent. of the Ordinary Shares, has agreed
to subscribe for the necessary amount of Ordinary Shares of 2p each by procuring
the release of approximately 1.5 million of the DDBs outstanding to Sterett
Holdings Corporation.

Under the AIM Rules, the arrangements with The Horizon Charitable Trust in
respect of the conversion of the DDBs to Ordinary Shares are deemed to be a
related party transaction. The Directors, having consulted with the Company's
nominated adviser, Strand Partners Limited, are of the opinion that the terms of
the proposed conversion are fair and reasonable insofar as the shareholders of
the Company are concerned.

The Capital Reduction is expected to become effective on or around 8 December
2005.

Share Capital Consolidation
Subject to the Capital Reduction becoming effective, the ordinary share capital
will be consolidated on the basis of 1 new ordinary share of 25p (the New
Ordinary Shares) for every 500 ordinary shares of 0.05p resulting from the
Capital Reduction.

Fractional entitlements will be aggregated and sold in the market and the
proceeds distributed to the shareholders entitled to them. Amounts of less than
2.50 will not be distributed to shareholders but will instead be aggregated and
held for the benefit of the Company.

Extraordinary General Meeting
The proposals are conditional upon the approval of the ordinary shareholders at
an extraordinary general meeting of the Company convened for 5 p.m. at the
offices of Strand Partners Limited, 26 Mount Row, London W1K 3SQ on 17 November
2005 ('Extraordinary General Meeting').

At the Extraordinary General Meeting, resolutions will be proposed to approve:
(i) the increase of the authorised share capital, the authorisation of the
Directors to allot existing Ordinary Shares and the disapplication of
section 89(1) of the Act in respect of such shares;
(ii) the approval of the Capital Reduction, the consolidation of the capital of
the Company and the amendment of the articles of association to reflect
this;
(iii) the increase of the Company's authorised share capital and the granting of
authority to the Directors to allot New Ordinary Shares; and
(iv) the granting of authority to the Directors to allot New Ordinary Shares
as if section 89(1) of the Act did not apply.

Copies of the circular and form of proxy are available to the public, free of
charge, at the offices of London Town, 7 Cowley Street, London SW1P 3NB during
normal business hours for a period of one month.





This information is provided by RNS
The company news service from the London Stock Exchange

this board has gone dead has everyone gone on holiday?

WW, no, we`re all out in the yard counting our chickens, which are all looking pretty plump and healthy from here on in.

heres hoping there are still sme eggs lying around.....

current bid price 0.58 just tried to sell 200000 online and price quoted was 0.63 not that i am selling how exactly does this happen??

Dowgate Capital Plc ('Dowgate' or the 'Company')

Holding in Company

Pursuant to section 198 of the Companies Act 1985 the Company has today
received notification that Restructuring Investors Limited has a beneficial
interest in 32,500,000 ordinary shares in Dowgate, representing approximately
5.25% of the Dowgate's issued share capital.

and I don`t think they will stop there ?? once they have purchased what they want, the price will go to the next level ( 1p plus )

squelch........

It's the Usual Suspects getting hold of ever increasing numbers of shares, ie willing to pay more to increase their holding.....how much are they willing to pay for a slice of the action? and how big a slice do they want (hope they are not dieting!)

Any ideas?

GN

GN
This is my point that last week or the week before they were paying 0.48 and now they are having to pay 0.62. That is quite a high premium if the sp isn't going to move much. If they believe that any price under 1p is good for a return that this shows commitment and faith that this is a gem of a company.
My question then is where is there exit point?

Ted1 - shortly before yours, in my experience!

sd

SD
Sounds familiar. lol