Real Affinity (RAF) is an AIM listed direct marketing and communications specialist. It was floated on AIM in March 2001 and was effectively taken over when Navigator reversed into it in February 2004. Its current market value is around 2.2 million.

It has extensive blue chip clients, including: Imperial Tobacco, Green Flag Motoring Assistance, InterContinental Hotel Group, Rizla, Procter & Gamble, DaimlerChrysler, European Athletic Association, Sports Technology Group, Campina, Puma, Umbro, Sage, Fox Kids TV Europe and institutions ranging from the English Schools FA to the Institute of Thai Culture.

Extracts from the results published 5 August 2004 for the year ending 31 March 2004:
The overall margin on gross profit to sales of the Company grew by 25% to 52% over the previous year. Operating expenses were tightly controlled and reduced by 864,248 against the previous year. Operating profit in the period under review before depreciation and amortisation rose by 141% to 256,300 against a loss of 529,466 for the previous year.
The chairman stated: I remain confident that should positive market conditions prevail the Company will be able take significant steps forward in the coming year!

Monthly averages
Date Open High Low Close
Aug 04 0.88 1.00 0.62 1.25
Jul 04 1.00 1.25 0.50 0.79
Jun 04 1.25 1.38 0.62 1.19
May 04 1.25 1.38 1.12 1.30
Apr 04 1.38 1.44 1.12 1.25
Mar 04 1.38 1.62 1.00 1.44
Feb 04 1.38 1.62 1.38 1.48
Jan 04 1.69 1.75 1.38 1.47
Dec 03 1.50 1.75 1.31 1.69
Nov 03 1.62 1.73 1.25 1.50
Oct 03 1.50 1.85 1.25 1.34
Sep 03 1.50 2.25 1.50 1.50
Aug 03 1.00 1.75 0.75 1.65
Jul 03 0.80 1.23 0.75 0.75
Jun 03 0.50 1.50 0.50 0.75
May 03 0.50 0.88 0.50 0.50
Apr 03 0.25 1.15 0.25 0.88
Mar 03 0.50 0.75 0.25 0.25
Feb 03 1.25 1.25 0.50 0.50
Jan 03 1.25 1.70 1.25 1.25
Dec 02 1.25 1.75 1.25 1.25
Nov 02 1.25 1.60 1.25 1.25
Oct 02 2.25 2.70 1.25 1.25
Sep 02 2.25 2.80 1.75 2.25
Aug 02 2.50 3.24 2.25 2.25
Jul 02 4.00 4.00 2.00 2.50
Jun 02 4.00 4.00 4.00 4.00
May 02 5.50 5.65 3.00 4.00
Apr 02 6.00 6.00 4.00 5.65
Mar 02 6.65 6.65 6.00 6.00
Feb 02 6.65 6.65 6.50 6.50
Dec 01 6.50 7.80 6.50 7.80
Nov 01 5.65 7.80 5.65 7.80
Oct 01 7.60 8.90 6.50 7.00
Sep 01 12.90 12.90 7.00 8.00
Aug 01 9.70 13.30 9.70 11.50
Jul 01 10.60 10.60 8.50 9.60
Jun 01 10.00 11.80 10.00 11.80
May 01 11.80 12.00 10.50 10.60
Apr 01 11.30 12.00 10.10 11.80
Mar 01 9.80 11.30 9.75 11.30

Real Affinity seems to be getting it right:

2 July 2004

LONDON (AFX) - Real Affinity PLC said Navigator, its UK sports marketing
unit has won a two year contract worth more than 100,000 stg from Sports
Technology Group PLC to develop brand awareness of the TIPAS products and
services worldwide and to implement an integrated marketing strategy.
TIPAS has extensive functionality covering areas like detailed athlete
registration, sports science, sports medicine, coaching and performance
analysis, lifestyle management, and video analysis on demand.
Real Affinity acquired Navigator in February 2004.
newsdesk@afxnews.com
ra

LONDON (AFX) - Real Affinity PLC cut its pretax loss in the year to
end-March but saw turnover drop 23 pct because of the group''s continued
withdrawal from low margin media activity and the absence of repeat business
from one of its major clients.

An improvement in sales is expected in 2005, it said.

The board said it has achieved a resolute strengthening in the underlying
financial position of the group during the year. Although the business climate
remained very competitive, the company benefited from an improvement in
confidence within the media sector last year, it said.

Pretax loss dropped to 37,770 stg from a loss of 1.3 mln stg a year earlier
and turnover was 4.6 mln stg, down from 5.96 mln.

The group''s direct marketing subsidiary, Ladders, continued to be profitable
during the second half of the year and increased its full year profits by 148
pct to 285,488 stg from last year''s loss of 600,337 stg. The board said it is
actively seeking new business for Ladders after the decision by the Royal Mail
to remove its Parcelforce contract.

The board said the development of Onstate is progressing under new
management, and it has increased and enhanced both internal and external
partnerships. ""We are seeing positive signs of increased activity from existing
clients and an upturn in new opportunities amongst prospects.""

Going forward, the board said it will be focusing on the organic growth
potential of existing subsidiaries plus it will be reviewing the appropriate
opportunities for the development of skills and services to clients through the
continued expansion of the group.

At Onstate, the first quarter saw an upturn in the volume of projects won
from the business to business and education sectors. In addition it has been
closely working with Navigator on some exciting new projects. During the second
half of the year, a joint venture will be formally launched to deliver a new
web-based education service across the UK, the company said.

It said the opportunities for further expansion through acquisitions that
enhance the services that Real Affinity can offer its clients are constantly
being reviewed.

""We expect this to be a prominent feature of our activities for the coming
year.""

newsdesk@afxnews.com

slm/

A nice 404K buy has just gone through.

Still seems well overvalued against tangible assets, unless you think it's going to start making whopping profits IMO.

Rgds
dell

dell314: You may think that but they've really brought costs under control and I like that 50% margin on business which is excellent. Navigator also seems a brilliant buy. With a market cap of around 2 million and turnover of around 5 million, they have a great chance of breaking into profit especially if they can keep those profit margins going.

I would expect one or more of the financial papers will run an article on this stock; Investors Chronical, Shares Magazine etc. Great results from a company that seems set to transform itself.

MMs don't seem to have much stock. Maximum online buy is currently 37500 at 1.25p. Wouldn't take much buying to see these fly.

From Friday's Daily Mail:

Market Report by Geoff Foster

Direct marketing and communications specialist Real Affinity improved 3/8p to 1p following substantially reduced annual losses of 37,500 from 1.3 million.

From another BB:

grevis worth mentioning that the numbers reported yesterday do not include any revenue from the recently announced marketing deal with EAA or the recent contract win by Navigator subsidary.

LONDON (AFX) - Real Affinity PLC cut its pretax loss in the year to
end-March but saw turnover drop 23 pct because of the group's continued
withdrawal from low margin media activity and the absence of repeat business
from one of its major clients.
An improvement in sales is expected in 2005, it said.
The board said it has achieved a resolute strengthening in the underlying
financial position of the group during the year. Although the business climate
remained very competitive, the company benefited from an improvement in
confidence within the media sector last year, it said.
Pretax loss dropped to 37,770 stg from a loss of 1.3 mln stg a year earlier
and turnover was 4.6 mln stg, down from 5.96 mln.
The group's direct marketing subsidiary, Ladders, continued to be profitable
during the second half of the year and increased its full year profits by 148
pct to 285,488 stg from last year's loss of 600,337 stg. The board said it is
actively seeking new business for Ladders after the decision by the Royal Mail
to remove its Parcelforce contract.
The board said the development of Onstate is progressing under new
management, and it has increased and enhanced both internal and external
partnerships. "We are seeing positive signs of increased activity from existing
clients and an upturn in new opportunities amongst prospects."
Going forward, the board said it will be focusing on the organic growth
potential of existing subsidiaries plus it will be reviewing the appropriate
opportunities for the development of skills and services to clients through the
continued expansion of the group.
At Onstate, the first quarter saw an upturn in the volume of projects won
from the business to business and education sectors. In addition it has been
closely working with Navigator on some exciting new projects. During the second
half of the year, a joint venture will be formally launched to deliver a new
web-based education service across the UK, the company said.
It said the opportunities for further expansion through acquisitions that
enhance the services that Real Affinity can offer its clients are constantly
being reviewed.
"We expect this to be a prominent feature of our activities for the coming
year."

This company certainly seems to be on the up. It reminds me of other shares I've bought in the last six months that have since done extremely well. Reversing 'Navigator' into Real Affinity seems to have brought a new dynamic to the company and 'Ladders' has turned in excellent results.

Like many small companies RAF went through a rather tough period between 2002 and 2003. Their latest results show they've finally turned the corner and have won some splendid contacts in recent months.

They've done an excellent job in reducing costs and with those new contacts in tow, I would would expect turnover to show a substantial increase over the next 12 months.

This stock has had very little press exposure todate and it's therefore encouraging to find a nice little mention in the Daily Mail on Friday.

RAF deserves a higher rating. It's now debt free and is valued at less than 50% of turnover. As the market becomes more aware of its potential, this stock should be capable of climbing well above its current price.

Good luck!

Extracts from the results published 5 August 2004 for the year ending 31 March 2004:
The overall margin on gross profit to sales of the Company grew by 25% to 52% over the previous year. Operating expenses were tightly controlled and reduced by 864,248 against the previous year. Operating profit in the period under review before depreciation and amortisation rose by 141% to 256,300 against a loss of 529,466 for the previous year.
The chairman stated: I remain confident that should positive market conditions prevail the Company will be able take significant steps forward in the coming year!

I am reminded of the saying "if you find yourself in a hole......stop digging". I am a shareholder and remain committed.
regards

Top percentage gainers today

EPIC Name Price Chg %
1 AIN ARCON INT. EUR0.10 30.5 27.45 900.0
2 WRN WORTHINGTON GRP ORD 10P 21.0 18.5 740.0
3 CMG CROMA GRP ORD 5P 6.25 1.5 31.58
4 SYN SYNSTAR ORD 1P 99.25 21.0 26.84
5 PET PETREL RES ORD EUR0.0125 51.5 9.5 22.62
6 RAF REAL AFFINITY ORD 0.1P 1.125 0.125 12.5

From another BB:

james 2 - 9 Aug'04 - 09:44 - 60 of 61


Grevis - the results only included 2 months of Navigator, so a full year assuming same level of sales/earnings for navigator would be :

Sales 1,485k
Earnings 1,067k

The business(navigator) contributed positively in terms of sales of #247,660
since the deal was completed in February 2004 and achieved a net profit before
tax of #177,823 (pre group mgmnt charge)

So already you can expect at least an extra 1.2 million of sales & 0.9 of income before tax (pre group mgmnt charge) in the next results ?

For you guys : press mention which will appear in tomorrow's Daily Mail.

Beyond the Footsie: Monday close
9 August 2004, This Is Money

Meanwhile, bullish broker comment kept Real Affinity 0.25p higher to close at 1.25p. House broker Seymour Pierce reckons the company will grow organically and via acquisition.

http://www.thisismoney.com/20040809/nm81252.html

as am showing a 50% loss currently need c 1.5+p - the news is good then for RAF?
have the chocks been removed?

Very droll m100.
regards

thanks - might go over some peoples heads - (I hesitated at...is this a flyer?)

with the acquisition - would have thought these would have been moving along a bit by now?