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Dowgate Capital - Capitalising on the booming AIM market (DGT)     

overgrowth - 09 Feb 2005 20:52

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.

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.
Chart.aspx?Provider=Intra&Code=DGT&Size=Chart.aspx?Provider=EODIntra&Code=DGT&Si

snakey - 12 Dec 2008 23:11 - 2760 of 2787

Good to hear from you WW
have a good christmas etc and sod the shares for a few weeks

snakey - 16 Feb 2009 12:28 - 2761 of 2787

Soooo, what is happening at Dowgate ??
more cash in bank than share price value...still strong business with added clients...loadsa deals last 12 months and equity in some of their clients. Has the fallout ( assuming it was a falling out ) with Mr Edmonstone hit DGT that badly or are there other reasons ??
The company has to be worth 10p a share at minimum ??? and I cannot see the sense in a 4p +/- market value. If I had 1.6 million laying around and everybody would sell, I`d bite their arm off.
Oh well, results due soon which will validate my thoughts or destroy any faith I have in them

snakey - 08 Apr 2009 22:54 - 2762 of 2787

Me not beeen around much lately, trying to keep me head above water or below the parapet and not much to `capitalise` upon in these dire times, but some decent buys over last few days and results soon. My heartfelt belief is that DGT will rise from the recent flames of despondency and pick up some gain over the next 6 months, back to a position similar to 12 months ago and am looking to fill up with some over next week or so. I know they haven`t performed, share price wise of late but still a good business although I am, as always, fearful that someone will be walking into this with a wad of cash and get a good company on the cheap.
best of luck to youse all and still worth a 5 k or so flutter

snakey - 15 Apr 2009 22:20 - 2763 of 2787

Hello, I know I`m talking to meself, but a much better standard of conversation that way and no arguments involved, but I did say someone was looking to get this on the cheap......they will, I`m sure
My thoughts turn to Mr Webb and possibly joint attempt with Mr Edmundstone ?? or that may just be a frivolous speculation. I don`t know who else would be in a position to amass the amount of shares necessary to achieve a takeover back to private company though ???
I`m still holding but am always ready to accept a decent offer !!! as I hope the main board are and not let it go toooo cheaply as it is a potential winner regardless of recent times.
good luck to all anyway....which I think is purely an echo ringing in me ears around the message board

maggiebt4 - 15 Apr 2009 22:27 - 2764 of 2787

You might be talking to yourself Snakey but I'm listening I'm still holding too and need a good offer to break even. Agree this is a potential winner so good luck to you too.

Balerboy - 15 Apr 2009 23:04 - 2765 of 2787

Me too, seems a long time ago i bought these, the cobwebs keep growing thicker.............wake me up when it moves north.

snakey - 20 Apr 2009 22:50 - 2766 of 2787

Dear Maggie and Baler, good to hear a couple more people somewhere in this labyrinthian cave.....methinks it will be a sell out, but would be very surprised if it was Blue Oar. negotiatable share buy out at 9p +/- expected....not 6p !!! which is tooooo bloody cheap, as I`ve said before, if I had a spare 1.6m I would bite their arm off for the company....omly concern I have is that results not yet released for last year and could be awful ?? but would like to see 12p nonetheless.
here`s a wishing and a hoping etc although I`ve probably just put the `mockers` on it and will plummet again to 3 or 4p
good luck and very much worth holding for awhile

maggiebt4 - 21 Apr 2009 08:25 - 2767 of 2787

Hi Snakey with the amount I've lost may as well keep holding Part of me would like them to keep going on their own as I reckon they will come good whether or not I'll be around to see it is debatable. Mind 12p wouldn't be tooo bad :-)

kimoldfield - 21 Apr 2009 16:04 - 2768 of 2787

Prelims are rubbish.

This is taken from them:-

Approach by Blue Oar plc



Shareholders will be aware of the recent approach by Blue Oar plc and should
take no action until such time as the Board is able to provide formal advice
which it will do if and when a formal offer is made. In the event that Blue Oar
plc decides to make an offer, it would need to be at a minimum of 6p per share.

DGT seem to indicate that the shares may be worth 11p but it looks like they don't expect much more, if any, than 6p.

snakey - 21 Apr 2009 16:41 - 2769 of 2787

I am astounded and disappointed with these results and the accompanying statements and makes me feel less than confident in the whole operation, especially following what must have been an unagreeable falling out with Mr Edmunstone earlier in the year. I did, at one time think, that there was some genuine enthusiasm and commitment here, but to have spent 1 m cash and lost god knows how much income in short space of time.....but can expect bonuses to be good for the few again this year ??? Tainted with the same greedy brush as the example set by government and other fatty cats. The offer, I understood, was for DGT not just DCA arm ?? and should be in region of 11p or 12p but what`s the likelihood of this board negotiating a good deal ??? especially if it becomes a MBO obviously all looking after each other here and sod small shareholders who had confidence in them as long as the sell out deal benefits the chiefs, why should they worry about a few pence on the share price !! even if they do hold millions. I did e-mail them a couple of times in recent weeks but no response and why should they feel the need to reply to mere minions like meself. soooo disappointed at these final results...uurggh

kimoldfield - 21 Apr 2009 16:49 - 2770 of 2787

All the BOD have ever seemed to do is pocket as much for themselves as they could and sod the shareholders. Little bunch of Fred Goodwins!

white westie - 21 Apr 2009 19:58 - 2771 of 2787

Bloody disgraceful results, loyal shareholders shafted as usual.

Doubt if we will be offered much more than the 6p after those results but i think we are worth a lot more than that.

Blue Oar posted a pre tax loss of 16.1million for last year looks like out of the frying pan into the fire.

I did get quick replies to my e-mails from TR but he could not answer my questions not allowed to by all accounts

ww

snakey - 22 Apr 2009 23:25 - 2772 of 2787

I will be astonished if Blue Oar proceed with any offer as think that they were trying to put some spin element onto diverting some attention away from their own problems and maybe enhance their share price a little ?? MBO has probably already been negotiated and agreed at 5p and interesting to note that MBO relates only to NOMAD arm of the business.
I was totally disappointed with no explanation in any form of what happened with Mr Edmunstone, who came into the business with trumpets blaring and looked upon my management as knight in shining armour, almost !!! then `given` 11% of the company only to end up walking away ( with decent pay off, I imagine ) within 6 months. Was this some misjudgement on behalf of those who are supposed to be taking care of business and shareholders or much deeper reason ?? All I know is that DGT, having repaired good amount of their good name after all the other nonsense surrounding them a few years ago, seem to have started on the road to abject failure from the moment he arrived....would love to know the story and believe we ought to be given explanation as shareholders. Hopefully I haven`t libelled anybody here as not intended but I have been concerned about this particular issue for months. What happens with Stockbroking side if MBO proceeds....do we get cash for DCA and keep full shares in DCS ?? Why don`t they stick some of their bonuses back into the business and keep it as is, because it will turn around when economy settles down and if they have no faith in it themselves, how are they going to negotiate a good deal on sale to anybody other than MBO ??
I`ve had me ramble for the evening so will leave it there for now, but welcome anybody else`s thoughts on this or other DGT issues, as I`m going back to the horses as much more fun and more money to win there than here !!!

kimoldfield - 23 Apr 2009 00:02 - 2773 of 2787

I'm with you snakey, I have suspected that there has been something 'iffy' about DGT for a while now, though I have never quite been able to put my finger on any problem other than excessive payments to directors of the company. A full enquiry by the FSA would not go amiss, though knowing there own record I would not hold out any hope for a result of any use to anyone!

kimoldfield - 23 Apr 2009 00:02 - 2774 of 2787

Oops! double post.

ptholden - 23 Apr 2009 17:28 - 2775 of 2787

I haven't followed DGT since selling up a few years ago at a decent profit. I was always a fan of the company until it became evident that director renumeration was hugely out of sync with net profits. From memory Tony Rawlinson was taking in excess of 25% of profits for his efforts. I'm certainly of the opinion that most small AIM companies are merely a vehicle for the fortunate few to stick their noses in the trough and suck it dry. Do some deep serious research and the same names continue to feature, most of the tiddlers fail or are sold on at massive shareholder discounts. It's a very profitable racket for some.

white westie - 29 Jun 2009 22:08 - 2776 of 2787

where has everyone gone ? just looked in first time for a couple of months and no posts since April.

Anyone got an opinion on this offer from Astaire?

I have received the documents from them but undecided what to do for the best, so for the moment i will sit and wait and do nothing.
They dont inspire me with much confidence just been fined 225,000 and the case still ongoing according to yesterdays MAIL ON SUNDAY.

Also received the annual report from Dowgate on Saturday bad reading so i dont think they will pull the SP back up either, wages up, pension pot up and massive losses and poor outlook for the 6 month results finishing on Tuesday probably more losses.
We PI.s have all been shafted as usual, if this offer fails i expect the SP to fall like a stone so if no other offer comes in it may be the only option to accept one of the 2 offers on the table to see if eventually Astaire can lift their SP into double figures so let me exit with smaller losses than at present.

A few comments on the other board about the offer i was hoping to see some more on here, unless you have all given up and sold out for what you could get.

ww

ptholden - 29 Jun 2009 23:14 - 2777 of 2787

WW

See my last post. Take the offer and hope for the best.

kimoldfield - 30 Jun 2009 00:34 - 2778 of 2787

Yes, frying pan into fire syndrome here! I will take max cash and hope to meet directors in some dark alley without their henchmen one day! :o)

maggiebt4 - 30 Jun 2009 08:24 - 2779 of 2787

What offer is this? I hold shares in a nominee acc and have heard nothing. Mind you I've not paid any attention to these for some time as I reckoned they were dead.
Thanks
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