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.

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

Excellent results. Wise Old man pipped WOD - H2 morrors H1. Really like the commentary. Expansion of services this year, particularly to develop fund-raising capability. Indigenous growth or acquisition. Dividend considered later this year. No sign of scrip issue but that doesn't need to come until there is a reason.

pe only 7 at .69p. Should be 10 for a growing company at least. Really should go to 1p. Certainly holding at the moment but will keep an eye on price movement today to acquire some spending money - sorry, for the wife!

Eric

I made the mistake of mentioning the results to the missus this morning and now she wants a holiday in the Maldives. Oh well.

Sent TR an e-mail this morning, just to thank him, and he replied within five minutes.

Dear Mr *****
Many thanks for your note. See if we can improve on it this year.
Much appreciated.

Tony Rawlinson

Too err, as they say, is human - so much on the side of caution divine!

Nice one, making my 2006 model of 571,500 post tax look a bit silly too.

Great Chairman's report - I echo Eric's views above. Definitely holding for more of the same, although now very toppy %age of my portfolio. However, the risk on a 12 month view is very low on such a simple business model. Need to interpret carefully the law of unforeseen consequences on its expansion/acquisition porogramme.

Only 3 posts this morning (treating Paulo's disgorgement as 1 thought in 3 parts!) - just shows how little known/followed this share is compared to what would happen on so many other threads. BTW, Paulo, I advise a long cold shower to take the edge off!

Makes up for stodgy old SEO yesterday.

sd

DGT performed above most of our expectations, shame we are just around 8% up from yesterday... hopefully this one will motor soon!

Looking forward to 2006...

Happy to be holding these. I like this part of the report very much:-

I will review the potential for a dividend later this year. !!

kim

0.08p = 13% - still should be nearer 1.0p IM(and Eric's)HO.

sd

sd

why is this share not at 1p yet...any reasons for this and should one hold out for this price?

m0d

was referring to the price that it fell back to... :)
and to think a year ago this was at 1.2-1.4!!! hopefully someone will see the light at the end of the tunnel!

m0d
Quite extraordinary why the sp is still so low although up 25% today. Where else can you find a share with profits, growing apace, positive cash flow, super margins, straight forward business model in growing niche market, competent management and yet pe is still under 8. With earning capacity up 25% and potential to grow returns by raising finance directly pe should be at least 10 and there is an argument for 12.5. I would wait to see how Shares et al. report. If they don't give it a good airing they will get a letter from Uncle Eric!
Eric

Is it because of the sector that they are in? If it's not oil, mining, bio - stuff like that, then it is out of the limelight a bit. Needs more publicity, sharpen your pencil ready for that letter Eric!
kim

Ditto Eric
I may be taking you up on that come the weekend.
Stevie

Lets see it break out from it's .8 high.... fingers crossed
The results demand it too!

This all makes very positive reading, guys, I agree. But henceforth we need regular statements/updates from TR and co. in order to support the sp and give it some credibilty. I think Eric's 2083-post (above) perfectly outlines the co. and its huge potential in this niche marketplace.

Must confess - I have always been highly sceptical having been in & out (with small profits) since its Abinger/CFA days esp because of the GHW link. But the more I delve into the figures and look at the opportunities, the more I can see this growing exponentially. I don't know of any other share which can boast this upside potential with such a low risk downside.

But yes, we need more media coverage......!

Blimey you were up early today Mark ;)

Out early today playing golf at Hinckley GC and the results are announced! However, I clearly didn't miss a selling opportunity, and I can't help feeling that these will run up higher once the results are digested, and the growth potential is recognised.

A very significant day in the annals of Dowgate Capital. Destined to be a major player in the market. Quite capable of generating sufficient cash for its expansion. Maybe the odd bit of funding to support an acquisition. Comfortable with competition. A safe home for the company floating on AIM. Loyal to the investors in from the early days - you and me, that is!

Sellers matching buyers today but expect those to diminish as profit takers have run off with their lolly; poor souls, where are they going to put it: a well at Staplehurst Farm? More buyers will be attraacted and the price will rise. So be it! What will be will be. Loyalty will pay off handsomely.
Eric

This is the write up in tonights UK Analyst Stock market report.

"A stunning set of numbers from Dowgate sent its shares soaring 0.14p to 0.75p. The company, which owns the broker and NOMAD City Financial Associates, reported a 74% rise in full-year sales to 2.31 million pounds, as pre-tax profits came in at 587,000 pounds. This was a great turnaround from the previous year's 366,000-pound loss. With cash of 1.2 million pounds and no debt, investors rallied to Dowgate's cause, speculating that the smaller-company adviser could replicate the success of established broker, Daniel Stewart. Whilst no dividend was paid, the company said it would consider making payments later on in the year. Whilst the numbers did benefit from a 179,000 pounds profit on the back of the sale of investments, the results represented a stunning performance. At the close, the stock was trading on an historic price/earning multiple of just 7.7 times."

Nice one, sjtee. That should bring them in tomorrow. Ready for take off?
Eric

Mmmmhh, interesting..... a write-up so soon after results - another one to follow should get the snowball rolling as the word starts to spread.....
BTW I can get up early, Cheeky Chox, when I have to/want to, you know. Anyway - get back to Forex, young lady! :o)
Canary9 - where's your cheque re: Golf entry, Rod? !!!!