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.

Wouldn't be surprised if RIL have set a target of say 10% of the company. There is a lot of activity for a share that is not moving anywhere in the face of solid fundamental value. Value will out - sit tight.

New word definition in honour of Eric - virillion, a respectable minimum holding of shares (SOD - StockDog Oxford Dictionary)

sd

MM's are accepting 1/2m volume to sell so I tend to support Paulo2's sentiments, above. They want our stock which can only mean one thing.....

:o)

There's one investor over on the other side who claims to have paid 0.67p for 500k today. It still hasn't shown up. Said he tried for 1m but was quoted 0.7p.

An investor from 'over on the other side'.......that must be deadfred then, glad he's seen the light and bought back in!....he'll make some money at last!

sd Glad you've proved your virility - lots of little puppies around, then? Hope they're not mongrels.

Well, we should know by Tuesday, it seems; not that DGT are into nonsense like announcing the date formally. I'm predicting celebrations - as the shares are in my wife's name, she can pay for once!

Eric

Still a wide spread and when it peaked many moons ago exceeding 1.50p - I can recall it's spread being just 0.01p (that's 1/100th. of a penny!). Once/if I see a similar shortening then I think that's the time we should all start believing that this minnow is finally going places.....

Buy 100k @ 0.65p,
Sell 1.5m @ 0.61p.

They seem desperate for shares this fine Monday morning!!

Well they can have mine for 1.5p, Paulo!

See there's been some talk about a possible share consolidation over in the other place. How do you chaps and chapesses feel about that?

Probably a good thing - sub-1p shares seem to be overlooked by many serious investors/institutions. It's a cosmetic thing, but empirically seems to be true.

sd

Buys:Sells = 3:1 this morning. Signs are good, at least then......

Paulo: A share consolidation would make sense. You just need to look at the write-ups on 1p shares and you sense a general disdain amongst the investment community. A write-up last year in Shares included some 100 penny shares and they were all tarred with the same brush, including DGT, with one exception. The generalisation was that they were highly risky shares, far from achieving positive cash flow and generally unstable and unreliable. Another article included HCEG as a penny share even though their cap was around 60m at the time just because there were billions of shares issued at well under 1p; since then there has been a 100 for 1 scrip issue and the share achieves instant credibility. I wouldn't be surprised if DGT made an acquisition this year, implied by the name change and presumably encouraged RIL who have been building up a stake, and a higher nominal share price would probably help.

Eric

Eric: What ratio would you think consolidation would suit this share ?

Just as a matter of interest, what is the general consensus on what the FY profits will be?

Seems no one wants to come out and say it after we were all surprised by the interims.

I'm hoping for anything between 0-75k for H2 with a very positive statemnent from TR.

corehard, 5 to 1 for me.

When is the AGM?

Paulo - I've said more than once that my model of earnings suggests 353k after tax for the full year, although I hope I have erred on the side of caution.

sd

Don't want to dispute sd figures as he is a WOD. But he called the interims high and I think he's called the finals low. DGT only claim when job complete so there may well have been figures sd has included in H1 thaat will come in H2 (same could happen over year end). I feel its safer to forecast H2 as matching H1 and thus PBT around 500K. We know they were very busy throughout the period and took on new advisor 1st Jan.

Re potential cap., why not 10 for 1? Not really expecting it, just put forward as a logical possibility: helps marketability in raising capital or making acquisition; also less off-putting to funds.

Not sure who predicted prelims by end Feb. Suspect they might come out without warning; anyone know TR well enough to find out?

Eric

EW, I e-mailed him at the beginning of February and he said he hoped to have them out by the end of the month.

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Dowgate Capital , turned around but not yet noticed (DGT) Remove Favourite

Click here for related discussions
Outsider - 03 Feb'06 - 11:14 View 'Outsider' profile



WARNING Please note I have not verified the information contained in this thread so PLEASE DO YOUR OWN RESEARCH to VERIFY



Cumulative Public Transactions 2006
Upto end of February 9 Comparative period 2005 3
(2006 deals are accounted for as soon as in public domain via RNS releases)



LATEST NEWS: 42nd client Pactolus Hungarian Property

Links
http://www.cityfin.co.uk/index.php

Clients: 42
Alba Mineral Resources - NOMAD & Corporate Broker
Archimedia Ventures - NOMAD & Corporate Broker
CEPS - NOMAD & Corporate Broker
Clarkson Hill NOMAD & Corporate Broker
Constellation Corporation - NOMAD & Corporate Broker
Contemporary Enterprises plc - NOMAD & Corporate Broker
Creightons - NOMAD
Croatia Ventures - NOMAD & Corporate Broker
Dovedale Ventures - OFEX Corporate Advisor
Dunn-Line - NOMAD
Elite Strategies - NOMAD
Enterprise North - NOMAD & Corporate Broker
Euro Capital Projects - NOMAD
Euro Investment Fund - NOMAD
Fairplace Consulting NOMAD
Firenze Ventures - OFEX Corporate Advisor
FlightStore Group - NOMAD & Corporate Broker
Fundamental-e Investments - NOMAD & Corporate Broker
Hampton Trust - NOMAD (Suspended)
IAF group - NOMAD
Infoscreen Networks - NOMAD & Corporate Broker
IncaGold - NOMAD
Intandem Films - NOMAD & Corporate Broker
Interactive Digital soln's - NOMAD & Corporate Broker
Interbulk Investments - NOMAD
London Town - Corporate Broker
Mediazest - NOMAD & Corporate Broker
Motive Television - NOMAD
Oak Holdings - NOMAD
Pantheon Leisure NOMAD
Parallel Media Group - NOMAD & Corporate Broker
Pearl Street Holdings - NOMAD
Pactolus Hungarian Property - NOMAD
Process Handling - NOMAD
Quintessentially English - NOMAD & Corporate Broker
Ragusa Capital - NOMAD & Corporate Broker
Red Leopard Holdings - NOMAD
Sportswinbet - NOMAD & Corporate Broker
Strontium - NOMAD & Corporate Broker
Tellings Golden Miller - NOMAD & Corporate Broker
Whitestar - NOMAD
Worldwide Natural Resources OFEX Corporate Advisor



Fundamental Data
Sector
Mkt.Sector AIM Mkt.Segment AIM
Turnover 1.32 Profit -0.37
Norm EPS -0.06 PE Ratio -
Market cap 3.81 NMS 100,000

News
01/03/06 07:11 UKREG Final Results
23/02/06 14:27 UKREG Holding in Company


Shares in issue/holdings

Shares in issue: 619.0m 0.25p Ords

Restructuring investors Ltd 57,000,000 9.21%
Anthony Paul Rawlinson 25,000,000 4.04% (director)
Ian Carysfort Buckley 2,500,000 0.404% (director)
David Alistair Horner 300,000 0.048% (director)




hifkdmer - 1 Mar'06 - 07:17 - 1138 of 1141


Seems very bullish!

ranoszek - 1 Mar'06 - 07:17 - 1139 of 1141


results are out and look good.

Outsider - 1 Mar'06 - 07:20 - 1140 of 1141



Dowgate Capital plc

Preliminary Results

for the year end 31 December 2005

CHAIRMAN'S STATEMENT

I am delighted to present my first statement to you as chairman of Dowgate
Capital plc.

Substantial progress has been made in 2005 in establishing the name and
reputation of City Financial Associates Limited ('CFA') as nominated adviser,
sponsor and financial adviser to smaller quoted companies. This has resulted in
the transformation of the business into profit following significant losses in
all previous financial years. Dowgate is now well placed for expansion.

Turnover rose to 2,310,000 (2004: 1,325,000) an increase of 74%, profit
before taxation was 587,000 (2004: loss 366,000). Earnings per share were
0.095p (2004: loss 0.06p). Net assets were 1,194,000 (2004: 607,000) of which
cash totalled 1,235,000 compared to cash of 495,000 at the end of 2004. The
CFA team for the bulk of the year comprised 4 corporate finance professionals,
supported by 2 administrators.

Key achievements in 2005 include:

* 20 new retained clients won during the year; CFA now has 41 retained
clients;

* Retainer income grew from 315,000 in 2004 to 516,000 in 2005, an increase
of 64%. Annualised retainer income is considerably in excess of this and
retainer income now covers a significant proportion of fixed overheads;

* Transaction fee income rose to 1,584,000 from 1,010,000 in 2004, an
increase of 57%;

* A total of 33 transactions were completed in 2005;

* Fixed overheads (excluding performance related bonuses) fell to 1,067,000
(2004: 1,714,000);

* Total staff costs including bonuses were 1,193,000, representing 52% of
turnover, in line with industry averages;

* Dowgate share price rose from 0.25p in December 2004 to 0.61p immediately
prior to this report, an increase of 144% increasing the market
capitalisation of Dowgate from 1.55m to 3.78m.

Following a period of instability in 2004, the business is now stable and
growing with a committed and hard working team in place. CFA has appointed 2
new corporate directors since the year end.

In 2005, CFA focused on:

1. growing the retainer base;

2. transactions which were pre-funded; and

3. on technical, advisory transaction.

As market conditions change, the need for us to be able to raise funds for our
clients will increase. Whilst we currently have some capacity in this area, we
will look at developing our fund raising capability during 2006. This
development will be balanced with our wish to continue to work with a range of
brokers suited to our clients' needs.

The Board is keen to commence dividend payments to shareholders as and when
prudent and possible. With the breakthrough of the business into profit in
2005, accumulated losses within City Financial Associates Limited itself were
almost eliminated, but substantial losses arising from Dowgate's previous
ownership between 2001 and 2003 of CFA Securities Limited remain carried
forward into 2006. The potential exists for the bulk of these losses to be
written off against the Company's share premium account but further profits
need to be earned or distributable reserves created for all past losses to be
eliminated. I will review the potential for a dividend later this year.

Looking forward to 2006, the year has started well with a number of key
transactions having been completed already along with additional clients having
been retained. The contribution of retainer income and fees already earned
leaves us well placed for the current financial year. Details of public
transactions are posted on our website

www.cityfin.co.uk

. Our pipeline of new
business remains strong with a good mix of transactions mandated and further
transactions under review. We are pleased to have retained our status as
sponsor to fully listed companies when new rules were introduced in July 2005.
As an authorised adviser to AIM, Official List and OFEX companies, as takeover
and merger specialists and with our broking capacity, we are able to take on a
broad range of opportunities. We believe this leaves us well placed for growth
in the core advisory business in 2006. In addition, we are exploring the
possibility of acquiring or developing in-house complementary businesses.

I would like to thank the team for their dedication and successful efforts
during 2005.

Tony Rawlinson

Chairman

1 March 2006

CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the year ended 31 December 2005

Note Year ended Year ended

31 31 December
December
2004
2005
000
000

Turnover 1 2,310 1,325

Operating costs (1,922) (1,714)

Profit on disposal of 179 14
investments

(1,743) (1,700)

Operating profit/(loss) 567 (375)

Interest receivable 20 9

Interest payable - -

Profit/(loss) on ordinary 587 (366)
activities before taxation

Tax on profit/(loss) on ordinary - -
activities

Profit /(loss) for the period 587 (366)

Dividends 2 - -

Retained profit/(loss) for the 4 587 (366)
period

Profit/(loss) per share (pence)

Basic earnings per share 3 0.095p (0.06p)

Diluted earnings per share 3 0.086p -

There are no recognised gains or losses other than the results for the year as
set out above.

All the activities of the current period are classed as continuing.

CONSOLIDATED BALANCE SHEET
At 31 December 2005

Note 2005 2004

000 000

Fixed assets

Tangible assets 11 22

11 22

Current assets

Debtors 552 340

Investments 57 131

Cash at bank 1,235 495

1,844 966

Creditors: amounts falling due (661) (381)
within one year

Net current assets 1,183 585

Total assets less current 1,194 607
liabilities

Net assets 1,194 607

Capital and reserves

Called up share capital 4 1,547 1,547

Share premium account 4 1,615 1,615

Profit and loss account 4 (1,968) (2,555)

Shareholders' funds 1,194 607

CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31 December 2005

Note Year ended Year ended

31 December 31 December

2005 2004

000 000

Net cash inflows (outflows) from 5 442 (275)
operating activities

Returns on investments and servicing of
finance

Interest received 20 9

Interest payable - -

20 9

Capital expenditure and financial
investment

Purchase of tangible fixed assets (4) (12)

Net cash outflow from investing (4) (12)
activities

Acquisitions and disposals

Proceeds from disposal of investments 282 14

Financing

Issue of shares (net of expenses) - 439

- 439

Increase in cash 740 175

NOTES TO THE PRELIMINARY STATEMENT

For the year ended 31 December 2005

1. Turnover

Turnover represents fees and commissions receivable by class of business.

Year ended Year ended

31 December 31 December

2005 2004

000 000

Corporate finance fees and commissions 2,310 1,325

The Group operates in one geographical area being the United Kingdom.

2. Dividends

There were no dividends paid or payable during the year.

3. Profit (loss) per share

The calculation of basic earnings per share is based on the profit attributable
to ordinary shareholders of 587,000 divided by the weighted average of
619,000,000 (2004 - 592,000,000) ordinary shares in issue during the year.

Diluted earnings per share in 2005 assumes that options and warrants
outstanding at 31 December 2005 were exercised at 1 January 2006, for options
and warrants where the exercise price was less than the average price of the
ordinary shares during the year which was 0.54p. On this basis, the calculation
of diluted earnings per share is based on the profit attributable to ordinary
shareholders of 587,000 divided by 680,234,146 ordinary shares.

As the Group incurred a loss in 2004, no option or warrant was potentially
dilutive, hence basic and diluted loss per share were the same.

4. Reserves and reconciliation of movements in shareholders' funds

Share Share Profit Total
and
Capital premium loss 000
account
000 account
000
000

Group

At 1 January 2005 1,547 1,615 (2,555) 607

Issue of share capital - - - -

Issue costs - - - -

Retained profit for the period - - 587 587

At 31 December 2005 1,547 1,615 (1,968) 1,194

5. Notes to the Cash Flow Statement

(a) Net cash inflow/(outflow) from operating activities

Year ended Year ended

31 31
December December
2005 2004

000 000

Operating profit/(loss) 567 (375)

Depreciation 15 20

(Increase)/decrease in debtors (212) 125

(Increase)/decrease) in short term investments (29) 69

(Increase)/decrease in creditors 280 (100)

(Profit) on disposal of investment (179) (14)

Net cash inflow/(outflow) 442 (275)

(b) Analysis of changes in net funds

1 January Cash flow 31
December
2005 2005 2005

000 000 000

Cash at bank and in hand 495 740 1,235

(c) Reconciliation of net cash flow to movements in net funds

31 December 31
December
2005
2004
000
000

Net funds at 1 January 495 320

Increase in cash 740 175

Net funds at 31 December 1,235 495

6. The financial information in this statement does not constitute the
Company's statutory accounts for the year ended 31 December 2005 or 2004
(but is derived from those accounts).

7. Annual General Meeting

The Annual General Meeting of the Company will be held at the office of Field
Fisher Waterhouse, 35 Vine Street London EC3N 2AA at 10.00 a.m. on Wednesday 29
March 2006.

8. Report and Accounts

Copies of the Report and Accounts for the year ended 31 December 2005 are being
sent to shareholders in due course. Further copies will be available from the
Company's registered office at Pountney Hill House, 6 Laurence Pountney Hill,
London EC4R 0BL.

Enquiries:

Dowgate Capital plc

Tony Rawlinson

Tel: 020 7090 7800



paulo2 - 1 Mar'06 - 07:24 - 1141 of 1141 edit


587k, I'm I reading that properly?




Post an article on this thread:

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31 site:2 gb 110153092920a3 advfnpgsiwiga *** dgt stocks :: 01/03/2006 07:24:22 :: 0.6130 (0.6094 ~99.4) :: 0.0018 ~0.3 - 1 - 0 - 1 - 0 :: 0.0000 ~0.0 - 0 - 0
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Sorry, the results are in there somewhere, just go so excited.

I think it says 587k.

Would someone please check.

Dowgate Capital plc

Preliminary Results

for the year end 31 December 2005

CHAIRMAN'S STATEMENT

I am delighted to present my first statement to you as chairman of Dowgate
Capital plc.

Substantial progress has been made in 2005 in establishing the name and
reputation of City Financial Associates Limited ('CFA') as nominated adviser,
sponsor and financial adviser to smaller quoted companies. This has resulted in
the transformation of the business into profit following significant losses in
all previous financial years. Dowgate is now well placed for expansion.

Turnover rose to 2,310,000 (2004: 1,325,000) an increase of 74%, profit
before taxation was 587,000 (2004: loss 366,000). Earnings per share were
0.095p (2004: loss 0.06p). Net assets were 1,194,000 (2004: 607,000) of which
cash totalled 1,235,000 compared to cash of 495,000 at the end of 2004. The
CFA team for the bulk of the year comprised 4 corporate finance professionals,
supported by 2 administrators.

Key achievements in 2005 include:

* 20 new retained clients won during the year; CFA now has 41 retained
clients;

* Retainer income grew from 315,000 in 2004 to 516,000 in 2005, an increase
of 64%. Annualised retainer income is considerably in excess of this and
retainer income now covers a significant proportion of fixed overheads;

* Transaction fee income rose to 1,584,000 from 1,010,000 in 2004, an
increase of 57%;

* A total of 33 transactions were completed in 2005;

* Fixed overheads (excluding performance related bonuses) fell to 1,067,000
(2004: 1,714,000);

* Total staff costs including bonuses were 1,193,000, representing 52% of
turnover, in line with industry averages;

* Dowgate share price rose from 0.25p in December 2004 to 0.61p immediately
prior to this report, an increase of 144% increasing the market
capitalisation of Dowgate from 1.55m to 3.78m.

Following a period of instability in 2004, the business is now stable and
growing with a committed and hard working team in place. CFA has appointed 2
new corporate directors since the year end.

In 2005, CFA focused on:

1. growing the retainer base;

2. transactions which were pre-funded; and

3. on technical, advisory transaction.

As market conditions change, the need for us to be able to raise funds for our
clients will increase. Whilst we currently have some capacity in this area, we
will look at developing our fund raising capability during 2006. This
development will be balanced with our wish to continue to work with a range of
brokers suited to our clients' needs.

The Board is keen to commence dividend payments to shareholders as and when
prudent and possible. With the breakthrough of the business into profit in
2005, accumulated losses within City Financial Associates Limited itself were
almost eliminated, but substantial losses arising from Dowgate's previous
ownership between 2001 and 2003 of CFA Securities Limited remain carried
forward into 2006. The potential exists for the bulk of these losses to be
written off against the Company's share premium account but further profits
need to be earned or distributable reserves created for all past losses to be
eliminated. I will review the potential for a dividend later this year.

Looking forward to 2006, the year has started well with a number of key
transactions having been completed already along with additional clients having
been retained. The contribution of retainer income and fees already earned
leaves us well placed for the current financial year. Details of public
transactions are posted on our website

www.cityfin.co.uk

. Our pipeline of new
business remains strong with a good mix of transactions mandated and further
transactions under review. We are pleased to have retained our status as
sponsor to fully listed companies when new rules were introduced in July 2005.
As an authorised adviser to AIM, Official List and OFEX companies, as takeover
and merger specialists and with our broking capacity, we are able to take on a
broad range of opportunities. We believe this leaves us well placed for growth
in the core advisory business in 2006. In addition, we are exploring the
possibility of acquiring or developing in-house complementary businesses.

I would like to thank the team for their dedication and successful efforts
during 2005.

Tony Rawlinson

Chairman

1 March 2006

CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the year ended 31 December 2005

Note Year ended Year ended

31 31 December
December
2004
2005
000
000

Turnover 1 2,310 1,325

Operating costs (1,922) (1,714)

Profit on disposal of 179 14
investments

(1,743) (1,700)

Operating profit/(loss) 567 (375)

Interest receivable 20 9

Interest payable - -

Profit/(loss) on ordinary 587 (366)
activities before taxation

Tax on profit/(loss) on ordinary - -
activities

Profit /(loss) for the period 587 (366)

Dividends 2 - -

Retained profit/(loss) for the 4 587 (366)
period

Profit/(loss) per share (pence)

Basic earnings per share 3 0.095p (0.06p)

Diluted earnings per share 3 0.086p -

There are no recognised gains or losses other than the results for the year as
set out above.

All the activities of the current period are classed as continuing.

CONSOLIDATED BALANCE SHEET
At 31 December 2005

Note 2005 2004

000 000

Fixed assets

Tangible assets 11 22

11 22

Current assets

Debtors 552 340

Investments 57 131

Cash at bank 1,235 495

1,844 966

Creditors: amounts falling due (661) (381)
within one year

Net current assets 1,183 585

Total assets less current 1,194 607
liabilities

Net assets 1,194 607

Capital and reserves

Called up share capital 4 1,547 1,547

Share premium account 4 1,615 1,615

Profit and loss account 4 (1,968) (2,555)

Shareholders' funds 1,194 607

CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31 December 2005

Note Year ended Year ended

31 December 31 December

2005 2004

000 000

Net cash inflows (outflows) from 5 442 (275)
operating activities

Returns on investments and servicing of
finance

Interest received 20 9

Interest payable - -

20 9

Capital expenditure and financial
investment

Purchase of tangible fixed assets (4) (12)

Net cash outflow from investing (4) (12)
activities

Acquisitions and disposals

Proceeds from disposal of investments 282 14

Financing

Issue of shares (net of expenses) - 439

- 439

Increase in cash 740 175

NOTES TO THE PRELIMINARY STATEMENT

For the year ended 31 December 2005

1. Turnover

Turnover represents fees and commissions receivable by class of business.

Year ended Year ended

31 December 31 December

2005 2004

000 000

Corporate finance fees and commissions 2,310 1,325

The Group operates in one geographical area being the United Kingdom.

2. Dividends

There were no dividends paid or payable during the year.

3. Profit (loss) per share

The calculation of basic earnings per share is based on the profit attributable
to ordinary shareholders of 587,000 divided by the weighted average of
619,000,000 (2004 - 592,000,000) ordinary shares in issue during the year.

Diluted earnings per share in 2005 assumes that options and warrants
outstanding at 31 December 2005 were exercised at 1 January 2006, for options
and warrants where the exercise price was less than the average price of the
ordinary shares during the year which was 0.54p. On this basis, the calculation
of diluted earnings per share is based on the profit attributable to ordinary
shareholders of 587,000 divided by 680,234,146 ordinary shares.

As the Group incurred a loss in 2004, no option or warrant was potentially
dilutive, hence basic and diluted loss per share were the same.

4. Reserves and reconciliation of movements in shareholders' funds

Share Share Profit Total
and
Capital premium loss 000
account
000 account
000
000

Group

At 1 January 2005 1,547 1,615 (2,555) 607

Issue of share capital - - - -

Issue costs - - - -

Retained profit for the period - - 587 587

At 31 December 2005 1,547 1,615 (1,968) 1,194

5. Notes to the Cash Flow Statement

(a) Net cash inflow/(outflow) from operating activities

Year ended Year ended

31 31
December December
2005 2004

000 000

Operating profit/(loss) 567 (375)

Depreciation 15 20

(Increase)/decrease in debtors (212) 125

(Increase)/decrease) in short term investments (29) 69

(Increase)/decrease in creditors 280 (100)

(Profit) on disposal of investment (179) (14)

Net cash inflow/(outflow) 442 (275)

(b) Analysis of changes in net funds

1 January Cash flow 31
December
2005 2005 2005

000 000 000

Cash at bank and in hand 495 740 1,235

(c) Reconciliation of net cash flow to movements in net funds

31 December 31
December
2005
2004
000
000

Net funds at 1 January 495 320

Increase in cash 740 175

Net funds at 31 December 1,235 495

6. The financial information in this statement does not constitute the
Company's statutory accounts for the year ended 31 December 2005 or 2004
(but is derived from those accounts).

7. Annual General Meeting

The Annual General Meeting of the Company will be held at the office of Field
Fisher Waterhouse, 35 Vine Street London EC3N 2AA at 10.00 a.m. on Wednesday 29
March 2006.

8. Report and Accounts

Copies of the Report and Accounts for the year ended 31 December 2005 are being
sent to shareholders in due course. Further copies will be available from the
Company's registered office at Pountney Hill House, 6 Laurence Pountney Hill,
London EC4R 0BL.

Enquiries:

Dowgate Capital plc

Tony Rawlinson

Tel: 020 7090 7800