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.

dear ALL,
nice to see some of the smart names posting, as I have been keeping an eye on these ( still hold some millions ) but caught a cold on Profile Media and had to work back in a bit. I did suggest this time last year that I expected a dividend which was not forthcoming. We are due one and the cash is there and am really expecting 0.02p per share for us weather beaten sideliners. I used to post a few jokes as well but Profile Media stopped me in me tracks for awhile, but I did say "sh*t or bust" at the time, not expecting it to be the latter. My hopes on this one though are really positive and always have been, but as Eric rightly says, it isn`t the type of share that can bound forward dramatically as it`s not in that sort of business. I still expect to see 1m + profit with the amalgamation ( is that the right term ) unless there is some problems with the SPE side of things, which would be me main worry and do see room for the divi as above. who knows what future will bring but they are working hard and picking up a few clients ( not as many as we all thought, I fear ) and trundling through a requisite number of deals, which I believe will increase now that SPE are fully integrated. They are a bonafide 1.5p share and will reach that in the not too distant future but until then I continue to work for a living to keep the offspring at uni etc.
best fof luck to you all, and I may come back with a joke or two, if we see some decent improvement.
snakey

sd How long is a dogwate? Does the dog know when the wate is over? Does the wate know when the dog is over? Can a dog jump over a dow gate? Can a dow... Doggone! I'll wate for the answers to my first question!

snakey - you shall be rewarded: maybe in the hereafter.

Eric

For how long - you'll need to ask my distant relative Terry - he knows a thing or two about waiting. But my guess is we will see he SP react to the preloms the day and 3 following their publication, as usual.

Yes, he did have a long waite! Hope you enjoy your preloms, together with the following lom! By the way, have you had a chance to tot up the new business - for DGT, that is?

Tumbleweed just blew through............

Shame there is not a spell check here on this thread, and / or a cell brain tester. -
Just popped in to read some constructive ? comments.
Lol.

I always thought 'guru11' was a funny way of spelling 'girl'!

At least we don't have White Westie quoting level 2 every half hour on this one!

There will be no action until prelims are published imho. There is nothing constructive to say until then.

STOCKDOG,

At least i post something useful whereas this board has died in recent months, you hardly have a word to say anymore on here although i think you post a lot on the other one under the name of DONAFERENTES

For your information i post those limits and L2 twice a day because i keep getting asked what they are and i am only trying to help people, if they want me to stop they have only got to say and i will cease.

ww

ww- only having a laugh. I don't post, 'cos there's nothing to say I haven't said several times already re the Ellis acquisition on both boards. I'm still positive about DGT and am happy to wait for prelims with patience, although it would be good to hear sooner rather than later, since I have a little end of year planning to accomplish by April 5.

If you ever stopped posting Level 2, we'd know the end of the world had arrived early.

5 nice solid buys today.

Not sure why and I can't be bothered to phone up and ask, but am unable to trade this on-line today. Awaiting the next set of Results with some interest, but whatever the outcome, I think my relationship with DGT will come to an end this time around. It has been a profitable one, but it is so news driven (twice a year) I feel it is time to move to pastures anew. The remaining shares I hold are all profit anyway, so no complaints.

pth

Pete, there must be a buyer out there, as you can sell on-line, but have to buy at best. Offered 0.69p to sell 100K shares..................Rod

Pete hi how are you - long time etc.

I can sell 500,000 at .67p but can only buy 50,000 (less than NMS) at 0.72p - mms need stock - or just aren't interested in holding enough to trade?

Understand your sentiment re moving out of DGT, but you could always treat it as a lock away stock and visit once a year in late March. I once heard that the agent who represents the estate of the songwriter of "White Christmas" only visits his office once a year in eaerly Feb to bank the cheques after the Xmas season!

Hi sd, good thanks. Must admit I don't have a huge amount of interest in shares at the moment, preferring to play FX. DGT has been pretty good to me over the last few years and with that wonderful tool called hindisght could have been absoultely brilliant, I ran out of patience at key times and took smaller profits than I should have, timing is everything! However it is time to move on, but will wait for the Results, which can't be too long now. Will be interesting to see what effect SP has had on the balance sheet, overall, business seems to have at the very least maintained the previous year's levels and probably somewhat higher.

Come to think of it I noticed on the other side yesterday that Buys ae limited to 50000, seems a little strange unless someone has a reasonably sized buy order in the market, or as you say perhaps the MMs just arn't interested. However, I have never had problems filling an order. We shall see :)

odd, someone has just paid over the Offer for 250,000 without a tick up, certainly seem to be holding it back and not encouraging any buying, although buys ticking through quite nicely

maybe they're holding it back for TR to top up after the close period (with his bonus as funds) -err, no, why would he do that,, whne he's probably granted himslef a load more sahre options anyway - lol!

Posted on the 3i website today

"Hi, Spoke to the company this morning, they are
expecting to anounce the results for the year end
in the next ten days. Thay wouldn't comment any
further when (very cheekily) asked about any possible
dividend payment. I was told to expect an anouncement
with the results!!. This could mean a "divi", but could also
be an announcment of "no divi".
Regards Col."

Dowgate Capital Plc / Ticker: DGT / Index: AIM / Sector: Finance

Dowgate Capital plc (`the Group' or 'Dowgate')

Preliminary Results

Dowgate Capital Plc, the AIM listed financial services group focused on small
companies, is pleased to announce its preliminary results for the year ended 31
December 2006.

Overview

* Turnover up 55% to 3,569,000 (2005: 2,310,000)

* Pre-tax profits up 55% to 815,000 (2005: 526,000)

* Corporate finance subsidiary, CFA, increased retained client base to 44
from 41 at the beginning of the year and increased transaction fee income
to 1.88 million (2005: 1.51 million)

* Acquired Ellis Stockbrokers Limited to complement CFA's services

* Healthy activity levels in both CFA and Ellis look set to continue

* Ellis started the year well on the corporate broking side and expects a
continuing positive contribution from private client stockbroking
activities

* Aim to develop Ellis's existing corporate broking business by working
towards building a small cap broking operation in London

* Continue to review other complementary acquisitions and strategic
partnerships

DOWGATE CAPITAL PLC

PRELIMINARY RESULTS

FOR THE YEAR ENDED 31 DECEMBER 2006

CHAIRMAN'S STATEMENT

Introduction

I am pleased to present my statement to you for 2006.

The good progress made in 2005 has continued with a further substantial
increase in profits in 2006 and the achievement of one of our main goals - the
acquisition of a stockbroker - Ellis Stockbrokers Limited - to complement CFA's
corporate finance services. The other goal mentioned in my 2005 statement was
the payment of a dividend. Along with the posting of the 2006 Accounts, we are
also convening an Extraordinary General Meeting to write off losses mainly
arising from the Company's ownership, until 2003, of Galleon Assets Management
Limited, to allow a dividend to be paid as and when resources are available. In
addition, a consolidation of the Company's share capital will be proposed.

Results

The Group's results benefited from owning Ellis Stockbrokers Limited ("Ellis")
from 24 October 2006. Turnover rose to 3,569,000 (2005: 2,310,000) an
increase of 55%. Profit before taxation was 815,000 (2005: 526,000) an
increase of 55%. These figures are after taking account of the cost of share
based payments, as a consequence of a new accounting standard effective for the
first time in 2006, of 85,000 (2005: 61,000). Before charging these costs,
which are added back to net assets in the Group's balance sheet, profits were
900,000 (2005: 587,000 being the profit reported in the 2005 accounts). The
tax charge for the year was 244,000 compared to NIL in 2005 as tax losses in
CFA have been utilised.

Despite the increase in pre-tax profit, earnings per share fell to 0.080p
(2005: 0.085p). The reduction was due to the group becoming tax paying in 2006.
Net assets as at 31 December 2006 were 5,040,000 (2005: 1,194,000) of which
cash totalled 2,651,000 (2005: 1,235,000). Both cash figures are before
payment of year end bonuses in CFA and Ellis. During 2006 the Company borrowed
1 million to partly finance the acquisition of Ellis. This loan is repayable
on or before 23 October 2007. As at the date of this report 340,000 has been
repaid. Net cash generated from operations totalled 726,000.

Key achievements in 2006

Key achievements in Dowgate and CFA in 2006 included:

* Further growth in CFA's retained client base to 44 clients at the end of
the year compared to 41 at the beginning.

* Substantial growth in CFA's transaction fee income to 1.88 million in 2006
from 1.51 million in 2005;

* CFA's overheads (pre profit related staff bonuses, cost of share based
payments and group management charges) were 1.11 million compared to 0.97
million in 2005, a modest increase compared to the increased turnover;

* Total staff costs including bonuses represented 48.8% of turnover, reduced
from 52% in 2005;

* Acquisition of Ellis (formerly Seymour Pierce Ellis Limited) for 5.19
million (including costs) including approximately 2.18 million of net
assets.

Ellis Stockbrokers Limited

Ellis was acquired on 24 October 2006 for a total consideration of 5.19
million including net assets (mainly cash) of approximately 2.18 million. The
acquisition was funded through a mix of the Group's existing cash resources, a
loan of 1 million from Barclays Bank plc, a placing of new ordinary shares

and the issue of consideration shares to the vendor. Good progress has already
been made in repaying the loan as stated above.

Ellis has been Dowgate's broker since inception, and the CFA and Ellis teams
know each other well. Ellis is currently broker to 54 quoted companies of which
CFA is Nominated Adviser/Corporate Adviser to 19.

In just over 2 months that Ellis was owned prior to the year end it contributed
152,000 towards Group pre tax profit. Since the year end Ellis has continued
to perform well.

Current trading and outlook for 2007

In common with other AIM advisers and brokers, trading in the first half of the
year in CFA and Ellis was somewhat stronger than in the second half of 2006.
However, as far as we can tell at this stage in the year, activity levels in
the second half of 2006 both in CFA and Ellis looks set to continue in the
first half of 2007. CFA currently has a good pipeline of transactions which
should result in a satisfactory level of income compared to the second half of
last year. Ellis has started the year well on the corporate broking side and
expects a continuing positive contribution from its private client stockbroking
activities.

Ellis and CFA are already working well together maximising group revenues.
During 2007 we intend to develop Ellis's existing corporate broking business by
working towards building a small cap broking operation in London to assist with
client fundraisings. Each firm will also seek to work with other houses to
maintain a broad spread of work.

With the growth in our business a larger City office (approximately 2,900
square feet compared to CFA's present 1,500 square feet office) has been
identified with an expected occupancy date around the beginning of May.

In addition to the Group's existing corporate finance and broking businesses,
Dowgate will continue to review the possibility of acquiring other
complementary businesses and working with strategic partners where possible.

Websites are now operational for Dowgate Capital plc
www.dowgatecapital.co.uk,

Had a quick glance at the prelims, most striking aspect is the continuing growth in turnover allied with a similar continuing growth in costs, presumably due to payment of bonuses. TR continues to build the business and comparable to a few years ago the expansion is quite impressive; however, the issue of bonuses is a contentious one and I believe shareholder value is being sacrificed in order for TR and his team to line their pockets. I sold my remaining holding last week having a sneaky suspicion that the turnover would be good, but the costs not.

I can't complain, I have done quite well out of DGT over the last three years. Good luck to those who continue to hold, but I believe there is much better value elsewhere in the medium term.

Hi, Pete. Understand your reasoning. AFX puts easing of price down to profit-taking; price beginning to come back with some new buying. I think we are moving into a new stage with DGT based on two statements. First the proposal for a consolidation of shares: by moving it out of penny share category, DGT will come onto the radar of institutions. Second, a dividend has been sign-posted for current year by proposal for write-offs and the forthcoming EGM.

So, what about the current value. I actually don't see the bonuses as a problem as it is a key way to retain staff (including TR himself with whom I am very impressed). Diluted earnings are 0.06p per share which gives a pe of about 11 This must be low given the 55% growth in turnover and pbt, together with statement on current trading. I will be interested to see our residential dog's projections! Equivalent of 1p after the consolidation? We may also move into a new phase with more frequent news as the company matures. The policy of acquisition-led growth together with development of small cap broking operation to support client fundraising should give greater gearing of professional staff and also encourage them to be somewhat freer with news.

Conclusion - good medium-term Buy. What else would you expect me to say?

Eric