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.

My thoughts exactly Ted1. Would CFA not have to declare who bought the shares (as well as sold them) in an RNS under stock exchange rules?

P

Yes is the answer Parsonsmead. I think an RNS has got to be issued by the end of play tomorrow. When would you issue the RNS if it is good news? Hopeing that bods will sell now on the back of Griffin pulling out only to be slammed with good news tomorrow with a new invester and sp moving upward. All my own thoughts of course, dreaming?

Its a wicked game we play...............lol.

P

36.8 mil X trade @ .32

So Griffin has sold out but to whom? Then we see 36.8 million go through at 0.32p. What's next I wonder!

So Griffin did in fact dispose of their holding yesterday at a small loss. Another acquisition of about 39M shares this morning - this could be part of the Griffin stake sold on. Someone building up a sizeable stake?

Eric

Shouldn't such a lage buy have tangible effect on price.. not withstanding yesterdays sells ?

It was sold & bought between two parties as a private deal 'X' trade

anybody any ideas about whats going on? all this doesnt make any sense. im afraid im starting to regret holding these. wish i had sold, fred, think you may have been right.

I still think that these are a good hold but I cannot understand the dealings which have gone on, with no apparent benefit to anybody !! at present anyway.
my thoughts still associate CFP with an IMH ( Seymour Pierce )deal particularly with the extra ordinary meeting and resolutions being pursued at IMH, who have an alternative strategy in the pipeline, methinks.There is some huge manipulation going on and I can`t believe that SB sold his total holding for a relatively miserable sum which was then sold! on again at a loss, however small.
was the 39m sold today the holding of JS, as there was no mention at time of SB`s sale to Griffin on what had happened with JS`s holdings. In my naivety, there appears to have been a transfer to someone of approx 170 million shares in last 2 days at a very low price!!! I think there ought to be some sort of statement from CFP board to clarify what has happened and who is interested ??

snakey

Good post. Shaw sold his holding at the same time as Barclay. Griffin's purchase more or less matched Barclay's sale (90% of it) but there was no mention of who bought up Shaw's, even though the size should have been disclosed if there was a single purchaser.

My own thinking is as follows. Barclay and Shaw retire, at least Barclay did - I don't know what happened to Shaw (and don't really care). There is no guarantee that Rawlinson will make the company work so it is better the bird in hand. Griffin has money in hand and thinks CFP a reasonable source of medium-term profit (I expect that means about six months to him). He then has somewhere better to use it so a small loss isn't a problem with him. Meantime, Rawlinson and his team plug away at their work making some progress. Someone has confidence in him/them and sees progress being made and says that the sp is far too low and I can do very well out of it, thank you. He is happy to pay 0.32p. Now he/she is closer to the action than I am (I paid 0.33p!) so it is comforting to know that this person has confidence in the company. As I have said before, I am happy that Rawlinson carries on doing what he should be doing - I don't want him to take time out to write RNSs or correspond with whoever. The market has nothing to do with the company and should not be interfering with it. I have plenty of action elsewhere, perhaps too much as it is results and trading news season, so am just happy to wait for the end of March. Hope that helps!

Eric

Eric,
ta for your response. much appreciated and maybe I am a little too cynical sometimes but where my money is concerned, I trust very few people.
good luck etc

Interesting theory, Eric. Almost plausible, in fact. Planned to buy this week but glad I hesitated at the 11th hour after last week's falls. No point in you guys selling now at 30p+ because of the very large spread (30%), I know. But do you still think it's worth a plunge if it gets near to the March announcement and the sp has held its own or increased slightly with say a narrower spread? It appears lots of long term holders like yourself remain consistently bullish but why? What makes this company so special and worth perservering with?

What happens if Mr. Rawlinson decides to take a walk? CPF nearly went bust twice in yesteryears, remember?

Agree with your sentiments, Snakey. I've been far too trusting and gullible in the past, myself. I still think some"one" plans to leak the stock themselves when it suits, at some later stage (IMVeryHO!) as it's been done before with CPF! These corporate guys tend to look after #No. One first and foremost, don't they?

Wish you all well though. Still monitoring events very closely.....

Kus.

Correction - CFP (not CPF!). Sorry guys.

Eric,
the bit that concerns me is that SB is, as stated by CFP, or will be getting a substantial one off payment which will be far in excess of his share sale I suspect and his knowledge of CFP and short term future, if not long term prospects, ought to tell him that the share price will be at least double or treble what he sold at to Griffin. If I didn`t believe that sort of value, and more, is in this share I would have been out long ago. Unless there is a sadder side to this whole episode !!! I mean personally with SB, god forbid.

Snakey - PMSL!!

Try this for a more sensible(IMO) assessment of the situation:

Griffin sell 60mln at 0.24p

Party B picks up 50mln of them at 0.24p

Party B splits the 50mln into 3 chunks and then farms them out via X trades at 0.32p(retaining 1 share).

So realistically speaking, I really can't see any sign of 170mln shares changing hands. All the large trades simply relate to what was Griffin's 60mln......

Obviously, the real interest here is who now owns the shares. Are they parties related to SD, or any CFP directors, or totally unrelated parties??

Rgds
dell

All IMHO, DYOR and this may turn out to be complete rubbish etc....

Good mornin CFP!
A small tick up, very nice, a little positive sentiment coming back?

There is movement on spread down to 24.2% which makes a change!

dell

Good effort! The 50M does tie up as there were three purchases later purchases totalling 50M at 0.32p. This appears to imply that a market maker took the shares and placed them with three buyers. The part that doesn't stack up is the fact that there were two sales at 0.24p: probably Griffin's 60M and that of 50M.

Re the reason for continued interest in the company: (1) the market is very attractive with the growth of AIM; (2) the company is well-position with good skills; (3) Rawlinson's track record is impressive. It strikes me that Rawlinson jumping ship is extremely unlikely: he is a professional who has the chance to take the lead role for the first time; he is probably not a rich man, based on the level of his holdings, and the opportunity to apply multiples to the holding he has by his own efforts is presumably attractive (I can't recall the option situation). If a poster is being cynical because that is his/her normal standpoint, then that is not particulalry helpful or appreciated. If its a matter of being convinced from a somewhat negative starting-point to a neutral or even positive stance, then that is what a bb like this for. Generally, the most coherent arguments will be from people who hold the share or have taken some time to read the bb as part of their exploration. Why then hold or buy. Because the potential upside is large compared with the downsides. If you are trawling the history, read overgrowth and ptholden in particular.

Eric

garden path mezzzz thinks

same old bull thats been flying around on this share for ages

ok lets look at it
i researched the ass of this one and everything looked(now thats a joke)ok

but when the md and an ex shareholder bail out(within min of each other) without telling anyone in the company there doing so

seems to me time to learn a lesson

dont get me wrong if i had major money to spare id be askin major questions on this share or paying someone to do it for me

because in my honest opinion it stinks

just an opinion