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.

interesting article in moneymail today which substantiates mine, and others, fears when Griffin and team took a hold of large part of company off SB etc and I sincerley hope they are out of the picture now completely.

interesting article on www.thisismoney.co.uk on the significance of golden crosses when predicting a rising or falling sp.
Would be interesting if and when this occurs with CFP.
Anyone more experienced have any thoughts.
Regards
Stevie

Aren't Interbulk one of Griffins companies?

Butane,
I believe you are correct inasmuch that CFP are NOMAD and Griffin are broker. my opinion would be to drop Interbulk like a red hot brick, sell anything we have in them and let them float around Cape Horn with Griffin.
I`m not sure what the involvement was with CRB (now MGP) when Griffin reversed into them and then disappeared but I would be suspicious of any involvement with them.

Butane,
It`s also very noticeable that there were some `boarders` at the time of Griffin buy from SB who were pretty supportive of the Griffin liaison with CFP who have now disappeared from sight. mixed with those were a few b*******ers
but all were involved with Griffen, I believe and were sounding out the reaction from a very informed thread. Hence they packed up and f*****d off.

Quiet before the storm again ???

I see the muppets on the other board are at it again.....decided i'll only read this one from now on.

Patience is all that's required with CFP, they have good recurring income from their existing clients and with SB and Griffin out of the picture there can only be good news to come.

butane: totally agree, how many times have we been through this already in the past 12 months. Many are in for the long haul and will sit tight. Good thing will come to those who wait.... and all other relevant cliches

C'mon, make us an offer!!........


http://www.timesonline.co.uk/newspaper/0,,2740-1485047,00.html
February 15, 2005
Charles Stanley in the race to buy brokings minnows
By Patrick Hosking

MINNOW stockbroking is fashionable again. Small brokers and fund managers unloved for the past few years now have suitors queuing up. Landsbanki, of Iceland, has just paid 43 million for Teather & Greenwood; Rensburg and Rathbone Brothers both want the hand of Carr Sheppards Crosthwaite.
Charles Stanley yesterday disclosed that it wants to join the consolidation party, announcing tentative plans to buy the West Country broker Rowan Dartington. Discussions are at an early stage.

It would be a relatively small deal for Charles Stanley, which is capitalised at 140 million and has plenty of cash in the kitty. Rowan Dartington, which has six branches, 500 million under management, 20,000 private clients and perhaps 30 corporate clients, is probably worth between 10 million and 15 million.
The pick-up in share markets and private investor confidence is responsible for the growing attraction of small brokers. Valuations have perked up enough to persuade vendors to sell, but not gone so far that buyers are wary of buying.
The small punter is making a comeback. The Footsies push through the 5,000 mark is just the news that will set clients thinking about share investment again. So will the moribund housing market.
Corporate deals are also helping small brokers. It takes only a couple of extra company floats or trade deals each year to make a small corporate advisory division extremely profitable. Brokers with heavy fixed overheads are highly operationally geared to a recovery in stock markets.
Then there are the synergies from buying up rivals. A lot of duplicated costs can be cut out in areas such as finance, personnel and compliance.
And finally much harder to achieve in practice, but always flagged up by such mergers there is the chance to cross-sell one anothers services, from tax planning to pensions expertise.
For as long as the share market continues to make good progress, Charles Stanley should prosper. But with a large family stake controlling the business, it will be predator rather than prey. And at 21 times forecast earnings, the shares which were unchanged yesterday at 332p are already fully priced. Hold.

butane

Could well happen but some time in future. Rawlinson and co. will want to prove themselves, build up the value of their holdings, grow the company by hiring more staff, build a position in the AIM market which makes them attractive and the, lo and behold, a really nice offer from SP. Two years down the line. Nice to have this sort of prospect down the line, because once they are proven, it will help to keep the price moving. Unless, of course, it goes so well that they buy out SP when the family want to retire and go hunting in France! lol! ROFL! fantasising again EWR! - go and kiss the teacher (female!)

Eric

Do CFP still hold shares in Setstone?

Butane,
although they resigned as advisor etc, I believe they hold 12 million of STN,
and it will be interesting to see what their relisting price is, assuming they do relist ?? long time now since suspension, almost 12 months I think ??

snakey. I have sent two emails to CFP over the last week asking for confirmation as to whether they still hold STN shares but, so far, i have had no reply.

do cfp still hold shares in voss net?

Butane,
you wouldn`t think it would be that difficult a question for them to answer, would you ?? Somebody had a list of all CFP holdings way back last year on this board. Is there anybody out there who could re post the current one please??

Might be an idea if we all email CFP with the same question until one of us gets an answer?



Edit...Just sent off another email, same question, to CFP....if they DONT still hold STN then i would like to know where they went to!

butane

as far as I know thy still hold setstone shares if sold thy would had to issue
RNS saying holding sold

Here is an interesting article on IPO'S...........

http://www.growthbusiness.co.uk/finance/flotation/285/the-ipo-experts.thtml


The IPO experts
For a successful flotation on AIM youll need more than a company with high potential. Just as crucial will be your ability to recruit the right advisers.

If you want to float your business on AIM, the London Stock Exchanges market for fast growth companies, youll need to be running a business with all the necessary attributes a strong management team, a sound business model and innovative products and services. A healthy level of sales and profits will also not go amiss.

However, while all of the above are extremely important, they will count for nothing if you dont recruit the right advisers to guide you through the entire process.

Professional, adept advisers will be able to raise the cash your business needs for growth, introduce you to the right balance of investors (both private and institutional) and, most importantly, put a value on your business that is commensurate with its level of development and potential. If everything falls into place you should be able to sit back and watch your shares go to a premium on the first day of dealings. This will almost undoubtedly enhance your relationship with your new shareholders and the wider City that most fickle of institutions.

Get the price right
However, if you choose the wrong advisers, you will be left with a tangled web of problems to unravel. The wrong adviser may not be able to procure the funds your business needs to leap to the next level, or they might fail to bring in the right investors. Moreover, if they price your business too aggressively, you could see your shares bomb when they launch, a development that will have dire consequences for your reputation. Conversely, if your advisers value your business too lowly and the shares soar, you will have given away a significant proportion far too cheaply.

To help you through the business maze, Business XL, in association with leading broker Canaccord, has examined every single IPO on AIM in the last year (all 248 of them). Our research charts the most active brokers and nominated advisers, the funds they have raised and the share price performance of all their clients.

Brokers are key
The most important adviser to select is your broker. Quite simply it is they that will raise the cash if they dont do this, there will be no IPO.

Happily, the brokers operating on AIM have an impressive track record in gleaning funds from the global investment community. Last year, they raised a total of 2.31 billion, the most thats ever been raised in AIMs short nine-year history.

The big broking guns
Top of the pile, for the third year running, is Collins Stewart, which raised 558.64 million for ten clients. In second place sits Evolution Securities, which reeled in 276.6 million also for ten clients closely followed by Numis, which raised 198.13 million for eight clients.

As the statistics suggest, these three professional service groups largely focus on bigger companies in search of considerable cash injections. Says Canaccords Neil Johnson, we are much better at raising 50 million than 5 million, but it all depends. Interestingly, the companies from this broking house have soared 87.5 per cent since they joined the market.

Mid-size and active players
If youre searching for funds in the 5 to 10 million bracket, the likes of KBC Peel Hunt, Arbuthnot and Teather & Greenwood are probably more appropriate operators to target. Of these, the best performance was produced by KBC, whose clients shares soared a credible 36.34 per cent. Like many, KBC adopts a flexible approach to raising funds. Says KBCs Adam Hart, we will do the smaller fundraisings, but we wouldnt really want to do less than 5 million.

The most active broker last year was Seymour Pierce, which pulled in 149 million for 27 new issues. According to Dru Edmonstone, Head of Corporate Broking at Seymour Pierce, his company will look at any size of fundraising. He says, we have no delusions of grandeur. The biggest float weve done was 100 million market cap max and we have no minimum. On average, the companies from this house saw their shares soar 24.28 per cent.

Manchester-based broker WH Ireland was once again at the forefront of activity, floating 25 companies, raising on average 1.67 million.

Nomads play a key role
Once youve selected your broker, the next port of call should be the nominated adviser. The importance of the Nomads role in the flotation should not be underestimated. Its job is to assess a companys suitability for a place on the market, advise on valuation, oversee the admission procedures and ensure that a company adheres to all the rules and regulations both before and after float. An experienced and capable adviser is a must.

Interestingly, many companies appoint as their nomad the same investment house that acts as their broker. The rationale is that it facilitates a much more swift and efficient float.

Nevertheless, there are advisers which only fulfil the Nomad role Nabarro Wells and Grant Thornton for instance. The benefit of this, they argue, is that a pure Nomad is working only on behalf of the client, and therefore more independent.

Of all the Nomads, Canaccords clients recorded the best share price performance, with Noble & Co's a close second, followed by Nabarro Wells and Grant Thornton. Just as impressive though was the performance of seasoned City players Teather & Greenwood and Beaumont Cornish (another firm without a broking division).

Keep sectors in mind
Of course, as well as choosing a broker for their fundraising power and a nomad for its particular skills, you need to bear in mind that some investment houses specialise in certain sectors.

WH Ireland has a focus on mining and resources, Canaccord focuses most on mining, media and life sciences, while Brewin Dolphin has its fair share of technology clients and Durlacher has a penchant for speculative financial services companies.

Most brokers, though, are generalists and can cater for a wide range of sectors. Typical of the generalists is Evolution, which, according to analyst Jeremy Ellis will pretty much look at any sector. As long as we have the analysts and skills in-house to provide professional support after a company has floated, we will take it on.

The most popular flotations in the past year on AIM were in the speciality & other finance sector with 59 new issues, followed by mining and natural resources. Of the finance newcomers, 43 were fledgling and highly speculative shell companies (companies that have cash, but no operating business and are looking for an acquisition).

Encouragingly, if your company is a software or media play and is growing strongly, you should have no difficulty finding support in the City. A total of 26 software ventures floated last year, raising 230.08 million, while no less than 21 media ventures floated, raising 265.48 million. Incidentally, in the previous year, there was just one media IPO.

Keep an eye on costs
By the time you have recruited your adviser and broker (not to mention your lawyer and accountant) you will begin to realise that conducting an IPO is not a cheap process.

Graeme Cull of Birmingham-based Arden Partners says the cost of flotation very much depends on the size and complexity of the deal. There are lawyers and accountants fees they might charge a ballpark 100,000 to 125,000 each for their months of hard work.

And then there are the broker and Nomad fees of say, 125,000, and remember, theyll also charge a percentage of the monies raised. Typically this is around three or four per cent, although some blue-sky ventures with no revenues were more than happy to pay seven per cent during the tech boom.

Not everyone is happy handing over this sort of percentage though. Says Seymour Pierces Dru Edmonstone, three per cent of the monies raised is the norm on floats. Anything reaching six per cent is what Id call the rip-off end of the market.

Excellent post butane. Many thanks. P

Nice to see. Did we get shares in this one as payment?

AFX


LONDON (AFX) - Shares in MediaZest, a provider of in-store solutions for retailers and brand owners, were marked up to 57-1/2 pence from a placing price of 50 following their debut on AIM.

fjb/ak