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Dowgate Capital - Capitalising on the booming AIM market (DGT)
overgrowth
- 09 Feb 2005 20:52
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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 |
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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. |
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butane
- 18 Jan 2006 14:20
- 1849 of 2787
Hope sym comes good for you too.
deadfred
- 18 Jan 2006 17:01
- 1850 of 2787
as well as polycell
i wont be coming back in as u should know
but i think it might double between now and results
just a gut feeling
but im keepin me money well clear
but roll with it
im keeping a deadmans eye on it
lol
white westie - 21 Jan 2006 14:40 - 1851 of 2787
I thought people would be trying to second guess the H2 figures as there was a lot of debate about H1 figures and some were pretty close when they came out.
Some peeps on the other BB are trying but getting quite a difference of opinion, SBL has not come up with anything for H2 just like Stockdog has not on here remember they were both pretty close for H1, i realise it must be time consuming.
Have you all become fed up as its stagnant at present and very boring with no action because we have not got any buyers they have all gone for the moment but we still seem to find sellers from somewhere.
Lets hope when the results come out they are good and we get a nice boost in the SP it depends on TR's comments as well in his forward looking statement i think.
I am looking for a profit of around 500K for full year as i do not think they have done so much in H2 as in H1 a lot of companies were trying to beat the deadline in H1 hence more work, and also it depends on how much bonus they take this time.
ww
moneyplus
- 21 Jan 2006 15:00
- 1852 of 2787
stockdog
- 21 Jan 2006 19:00
- 1853 of 2787
Maybe that thought will inspire me to trawl through the BB to find all the reports of deals done in the last 3 months of the year. Anyone know when results are likely? My guess is sooner than April 19 as last year since they will be reporting profits not losses.
sd
snakey
- 21 Jan 2006 19:15
- 1854 of 2787
once our expectations are realised and everybody else finds out what a good company this is, then there will be a bit more banter on here, I`m sure. I think we got a bit fed up of talking to ourselves last year !!
Stock, I still think we will hit the 550k or 600k, but then again, I was always an optimist. any other good jokes anyone ???
snakey
- 21 Jan 2006 19:18
- 1855 of 2787
white westie - 21 Jan 2006 21:18 - 1856 of 2787
TR said he will hope to get the results out around the end of Feb
stockdog
- 21 Jan 2006 22:38
- 1857 of 2787
Turnover 727,800
Overheads 650,000
bonuses 26,840
interest rec'd 12,000
net profit 62,960 plus possibly Tellings Golde Miller if credited to H2 50-150k
tax nil
H1 net profit 290,000
year profit 352,960 possibly plus 50-150k
On low figure gives PE of 8.24. If PE should be 12.5, SP should be 0.71p.
On high (mid TGM) figure gives PE of 6.95. If PE should be 12.5, SP should be 0.85p.
Who knows where we will be - somewhere in between I wouldn't be surprised.
sd
stockdog
- 22 Jan 2006 22:31
- 1858 of 2787
Allowing 190,000 annual retainers surviving from pre-31/12/04 and 448,000 gained in 2005, we start off with 638,000 annual retainers.
Add to this 2 new clients added per month (25 total for 2005 ) at an average 18,000 each, pro rated for 1/4ly payment, gives a further 270,000 in annual retainers (total est. 908,000 now covering 67% of est. overheads).
Allowing about 88% X 2005 figures for fees and brokerage commission, gives another 900,000 and 150,000 respectively. This should really be higher in line with increasing number of clients, but I want to be deliberately conservative here.
This makes a total of 1,958,000 revenue for the year (11% up on my above 2005 estimates)
Allow a 100,000 increase in overheads (another key man taken on recently) to 1,350,000 and bonuses of 33% of revenue less overheads = 202,667 (%age approx. as est. last year too).
Lastly, an informed guess at interest received of 33,000 (2005 est. 21,000)
This gives us a net profit of 438,333, a 24% increase over my low estimate for 2005 of 353,000. (Accumulated losses to 30/06/05 were 2,265,000, so no tax should be payable on 2006 profits.)
On the current SP of 0.47p that gives a 1 year PE of 6.64 and a PEG of 0.27
On a more realistic PE of 12.5 the SP should be 0.89p with a PEG of 0.52, still well under 1.0, representing good value based on its growth prospects.
The above is pretty modest, based on actual H1 2005 and quite conservative H2 2005. Profit growth is achieved entirely by increase in annual retainers, assuming just less than a repeat of last years new business, and a reduction in other fees/commissions.
This should allow the SP to rise steadily over the next few months, so long as more investors spot the value. Can't tell what discount to above values market sentiment may dictate. Be good for TR to supress his puritan instincts and allow his PR machine a slightly longer leash (after he - and other directors too, please! - have topped up when the close period is over following reporting 2005 results, of course!).
Can't see any reason to reduce my way overweight position in these shares on the above basis. Is it time to revive the concept of the 1 party for sometime in 2007?
Interested in any counter-views from all the regulars.
sd
Paulo2
- 23 Jan 2006 06:21
- 1859 of 2787
butane
- 23 Jan 2006 07:40
- 1860 of 2787
Meanwhile, more work......
Change of Adviser
RNS Number:2705X
Legendary Investments PLC
23 January 2006
Legendary Investments plc
Change of Adviser
Legendary Investments plc is pleased to announce that it has today appointed
City Financial Associates Limited as its Nominated Adviser and Broker with
immediate effect.
This information is provided by RNS
The company news service from the London Stock Exchange
END
Paulo2
- 23 Jan 2006 07:45
- 1861 of 2787
corehard - 23 Jan 2006 09:47 - 1862 of 2787
canary9 - 23 Jan 2006 11:35 - 1863 of 2787
snakey
- 23 Jan 2006 11:44
- 1864 of 2787
snakey
- 23 Jan 2006 19:02
- 1865 of 2787
quick question for those that know; regarding PMD !! (sorry) but they have announced a "voluntary company agreement" regarding setting aside their major debt. what does this mean please ??
stockdog
- 23 Jan 2006 19:13
- 1866 of 2787
good luck with it.
come on DGT.
sd
nevgroom - 23 Jan 2006 19:39 - 1867 of 2787
stockdog
- 23 Jan 2006 22:54
- 1868 of 2787
sd
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