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.

Most of the posters from the 'other site' are definately NOT welcome on this one.

imho
quite right butane there is enought pooh spread on this one without anymore coming on board

Are you back in CFP deadfred?...

imho read the posts a few weeks back that will tell you if im back in

the smell of farm yard is all over this share just now imho

blimey, its df back from the dead! had a re think and i am out of cfp now. i dont believe in it any more.

bosley old chap were you been??

imho cfp when i invested in it looked imho to be a company to invest in too and trust in my research in it

that all changed when a md and an ex employee sold there shares on the very same day

when i phoned and asked (no name no pack drill) the person who is very high in the company explained to me on the phone he did not know and was also not very chuffed about what had happened(imho if it was me in charge sb would have been sacked right away no messing)decicive management))

then if i remember right(and im only using memory here) there was a rumour of the company not making a profit this time around

now you have companies changing over to other companies this makes the company less appealing

you see my point by now bosley old chap

the rampers on here and on other bb who imho are one and the same ppl in most cases have been trying to get this turkey to fly for ages to no avail(the price is still not far from the price i sold out thoses months back

i still think this has potential but only if the new ppl in charge grab the bull by the horns and make it run

just my opinion which we all have the right to view

LOl Fred
They said that the Spruce Goose would never fly.
but fly it did.
This will come good but sadly I will have sat on a paper loss for 12 months.
The thing is it only takes a couple of biggish clients to float and this micro-cap could double before you have time to hit the buy button.
Not that your finger will be hovering over it LOL.
Stevie

aha stevie you read ppl posts good man

I here Intandem films is ready to float in March. Didn't CFP try to do that last year but they pulled out because Intandem got a lottery grant.
Anyone remember?

Where did you hear that Ted?

Its on ADVFN thread
Stevie

Read it in the magazine I subscribe to Growth company investor, it reports brokers are looking to raise 1mil. Doesn't mention the broker though. That other thread is rubbish don't read it anymore.

Why all the big sells this morning ?

Buys @ .33p are coming in now..........FWIW, CFP are 'definately' nomad and broker to the forthcoming Intandem float. dyor, etc

Butane
Well done for finding out that they are definately nomad and broker. 2005/2006 should be a very good year for cfp. Lets get these poor results out of the way and onward and upward. Not selling mine for at least 18 months.

Ted1,
Yes, good news (Intandem)....i think todays sells are just a 'bored' or 'strapped for cash' holder getting out...hopefully the results will not be as bad as we are expecting, anyway, things can only get better from here on.

agree totally.

This placing will put more 's in CFP's coffers........





Interbulk Investments PLC
04 March 2005



INTERBULK INVESTMENTS PLC
INVESTMENT


The Board of InterBulk Investments plc (the 'Company') announces that it has
today entered into an agreement to acquire 15% of InBulk Technologies Limited ('
InBulk'), which is a developing venture specialising in the transportation,
storage, discharge and conveying of a broad range of bulk solid materials
including minerals, chemicals, petrochemicals, plastics, food & pharmaceuticals,
grains & agriproducts and a range of waste materials across a diverse industry
spectrum.


InBulk has developed the ISO-Veyor product range which is a new patented
technology that incorporates a means of intermodal transport, storage and
discharge that can be handled anywhere in the world where standard
ISO-Containers are already in use. InBulk owns the IP rights to the G and H
type ISO-Veyor. InBulk is currently focusing on the cement transportation
sector, among others, and is in talks with a number of transportation companies
and cement manufacturers to provide ISO-Veyors to them.


In the period from incorporation on 25 November 2002 to 29 February 2004, InBulk
had turnover of 1,359,000 and made a loss before tax of 317,000, due partly to
product development and marketing costs. It had net liabilities of 132,000 at
29 February 2004.


It currently has 675,000 ordinary shares of 1 each in issue, and it is proposed
that a total of 119,118 ordinary shares be issued to the Company in
consideration for the investment, of approximately 1.5 million. The investment
is being made in two tranches, with half payable upon entering into the
investment agreement and the remainder within 60 days. Upon payment of the
first tranche the Company will receive 59,559 new ordinary shares in InBulk.
The Company intends to issue new ordinary shares by way of a placing for cash to
raise up to 900,000 to cover the second tranche. Upon payment of the second
tranche, the Company will receive a further 59,559 new ordinary shares in
InBulk. Under the terms of the Investment Agreement, the proceeds payable to
InBulk will be used for working capital and development of the business.


The 15% interest in the ordinary share capital of InBulk will be held by the
Company as a long term investment. The Company has the right to appoint one
director to the board of InBulk.


As Bill Thomson, a director and substantial shareholder of the Company, is also
a director of InBulk and owns approximately 13% of the issued share capital of
InBulk, the AIM Rules deem the investment in InBulk to be a Related Party
Transaction. The directors of the Company (save for Bill Thomson who is
connected with the investment), having consulted with their nominated adviser,
City Financial Associates Limited, consider the terms of the investment to be
fair and reasonable insofar as the shareholders of the Company are concerned.


Enquiries:


Interbulk Investments plc
Stephen Dean, Chairman
Vince Nicholls, Finance Director 01732 838877


City Financial Associates Limited
Tony Rawlinson 020 7090 7800
James Caithie





This information is provided by RNS
The company news service from the London Stock Exchange

An interesting article with CFP briefly mentioned in the 7th paragraph....




Friday 1st October 2004
The hot way to IPO
If youre thinking of going public, you cant afford to ignore the cash shell route a quicker and often cheaper way of floating. Following a boom of late, there are now 69 shells on AIM, all searching for the right business. And theyve got 77 million to spend.

Shell companies used to be considered corporate curiosities, peculiar business beasts led by unconventional entrepreneurs, advised by enlightened brokers and backed by contrary investors. Now, however, they are an important and entirely normal part of the financial landscape.

The proof of this is in the counting. When Business XL last investigated this area (in 2002), there were 25 such vehicles. But our recent research, conducted with the assistance of leading legal advisers Pinsents, unearthed no less than 69. Between them they have around 77 million to spend.

The allure of the shell
For the uninitiated, a shell is simply a company that boasts a stock market quotation and cash in the bank, but no actual operating business. They are usually led by a well known City player, have a ready-made list of eager shareholders and are basically looking around for a suitable business to buy for the cash they hold or one with which to conduct a reverse takeover.

If youre an entrepreneur looking to float your business, reversing into an existing shell company offers several distinct advantages over a more traditional listing.

According to Chris Akers, an entrepreneur who currently heads two shells and has been associated with several successes in the past, 'the main attraction of shells is that they represent a guaranteed route to market which may not have been available to certain businesses due to either market conditions or managements lack of contacts with the City.

For Liam Murray, a corporate financier at CFA Capital, another attraction is that they offer a fast track route to joining a public market. Says Murray, a conventional flotation will take at least three months and usually around six. But if you reverse into a shell you can actually complete in a month provided, of course, everything falls into place. This is a crucial advantage as it means that a chief executive will have to spend less time with advisers and more time doing what he is paid to do, namely, driving his company forward.

Cash, personalities and more cash
Perhaps more importantly, moving into a shell can allow you to grow at a much more rapid rate.

The most obvious reason for this is that they possess cash resources, which can be utilised for expansion. Then, of course, there is the incumbent serial entrepreneur. As mentioned, many of these are experienced, financially savvy professionals whose knowledge and contacts could prove invaluable.

Should you require more cash, the shells ready-made list of existing shareholders may also prove very willing (depending on the shell) to invest further sums if the business plan demands it.

Last, but by no means least, the costs associated with the transaction may (though do not always) work out a little cheaper as a result of the reduced time frame involved.

Some initial risks
Unfortunately, not every shell will be able to deliver all the benefits listed above. The value placed on the shell can prove problematic (of which more later).

Then there is the fact that certain shells are headed by City players who are more opportunistic than entrepreneurial. They may be more interested in making a financial return than sticking around to grow your business. Says one City insider, there are some horrible scams around. In some cases the shells are set up on AIM by one guy, who then puts his chums in, loads up with cash and sits there for months waiting for an unsuspecting company to come along like an elephant trap. Once the deal is done often at a price favourable to the incumbent entrepreneur they sell their shares and move on.

You may also have a hard job raising extra cash from the existing shareholder base you inherit, particularly if you reverse into a dirty shell whose previous business has already failed.

Choices aplenty
The description dirty in this context basically means a shell that has been forged from the remnants of a failed business and is seeking a shot at reinvention. These vehicles stand in contrast to clean shells, purpose built companies floated on the market to find a company to buy.

There are 29 clean shells on AIM and 40 who sport a dirty label and the differences between the two camps are marked. The current crop of clean shells has over 45 million in cash and 46 million of assets. Despite there being 11 more of them, the dirty shells have just 32.2 million of cash and 29.1 million of assets (after liabilities) at their disposal.

Market valuations attributed to clean and dirty shells also show great disparity. At 3.5 million, the mean market cap for purpose built entities is around 2 million greater than it is for dirty shells. This is in spite of the fact that the former group have, on average, just 800,000 more cash to their name.

Basic attractions
A clean shells most appealing asset apart from its cash resources is the fact that, as its a new company, it has no historical baggage and it should prove to be an uncomplicated transaction for an incoming business.

With dirty shells, historical revenue losses can be offset against profits if the incoming company is in the same line of business, while accumulated capital losses can be used for anything.

Amberley, for instance, has some 13 million of capital losses to its name at present, whilst Illuminator has in the region of 4 million waiting to be exploited.

The flip side of this coin is that many dirty shells possess liabilities, meaning that there can be a considerable amount of problems to clean out. In addition, it can be difficult to shrug of the reputation of former failed businesses when meeting investors and journalists.

The price of a deal
The most important consideration when engaging with a shell though is the price at which you conduct a deal.

Among the clean shells, Fitzwilliam Capital, for instance, has a mere 500,000 in cash but boasts a market value of 5 million. Conival, led by Richard Thompson, meanwhile, has cash reserves of 400,000 and a market value of 2.5 million.

Of the dirty shells, Greenchip Investments is valued at the greatest premium to cash, while Matisses cash of 15,000 is deemed to be worth 740,000 by investors.

The premium afforded to all of these entities is basically a reflection of the hope and optimism the market has in the ability of the entrepreneur leading them to engineer an earnings-enhancing deal.

But owners of private businesses need to seriously question these valuations. Says Adam Hart from leading City broker KBC Peel Hunt, it is essential to ask what you, as the incoming firm, are receiving in exchange for the deal. If you are paying 2 for what is essentially 1 of cash, what are you getting for this premium.' he opines.

In short, reversing into a shell trading at an unrealistic premium to its assets is likely to prove very expensive to the incoming business owner. Unless you bargain hard and take the proper financial advice, your ownership of the new vehicle will be diluted out of all proportion to the assets you have actually injected.

Behind the shells
As already alluded to, the entrepreneur behind the cash shell should represent a key consideration for any growth firm considering a reversal as a route to market. Their contacts, expertise and ongoing commitment are vital to future success.

When it comes to cash shells, certain City figures are extremely active and, just like the shells themselves, the specialities of these figures vary greatly.

Some, the likes of Leo Knifton, Nigel Weller, Peter Redmond and Richard Armstrong, specialise in cleaning out failed businesses and preparing the empty shells for reversal. Others such as Haresh Kanabar and Chris Akers create new shells and act as mentors to bridge the gap between businesses and the City.

Convincing these entrepreneurs that your business is the right one to back is not a simple process. Richard Armstrong, who currently sits on the board of four AIM shells, says, when you embark on this route your are in the shop window. It is a bit less arduous than having to go through the whole flotation roadshow, but its not an easy option. We're just as, if not more, rigorous than brokers. We are, after all, putting all our monetary eggs in one basket.

Against this, its worth noting that striking a deal with these entrepreneurs is a two-way street and you have to be just as rigorous in your own due diligence. 'We've been embarrassed by the paperwork put out by some shells,' Chris Akers, chairman of Ardent and TMT confesses. 'The ratio of founder investment to placing investment is particularly important to look at. Shell creators can't be allowed to load themselves up with discounted founder shares and take a free ride.'

Most professional advisers counsel that it is wise to thoroughly investigate the founders shares, warrants, options and other incentivisation tools. And make sure those behind the shell are locked in (that is, are not able to sell their shares) for a least a year to guarantee they remain committed to providing guidance and assistance to the new businesss growth plans.


Case Study How SSI found a home in Chelford

When supply chain software solutions business SSI decided to launch onto AIM in mid-2000, it opted to do so via a reverse takeover rather than flotation a decision that, chief executive Trevor Lewis explains, owed much to the circumstances of the time.

SSI's dilemma was that it was looking to come to market just as technology stocks were losing favour. 'The float window was beginning to close,' recalls Lewis, 'but fortunately one of our board had a contact with [acclaimed shellmeister] Mike Edelson.' For SSI, Chelford (the shell in question) solved the problem because it had 'the cash and the credibility', however, he admits that while the deal 'has worked well for us' there have still been a few issues to overcome.

'Clearly what we have is a significant retail shareholder base but we do now need to bring in some institutions,' Lewis concedes and 'some people also held a bit of a stigma against us as we are a penny share. This is something we are also looking to address.'

For those considering following in his footsteps in future Lewis simply advises that businesses 'make sure the shell is absolutely clean, that the people involved have credibility and that they have something to offer following the deals completion'.

http://www.growthbusiness.co.uk/deal-zone/adviser-directory/adviser/101272/city-financial-associates.thtml