Final Results Due In March 2005.

http://www.cityfin.co.uk
Trades over 450,000 shares are delayed in reporting by 1 Hour.

One of City Financial Associates (CFP's) main operating goals is to bring fledgling companies to the market. With the depressed stock market over the last few years many potential clients have deffered entry to the LSE. Markets have now turned and the reality of a sucession of new floatations is growing. CFP are well positioned to enjoy the rewards that will be benefited to them in this growing market place.

Why the EXCITEMENT - will here are the reasons why I think we're on a winner.

1) My motto is when it's comes to investing there are three things. Management, management and management. With any good investment - the management should be the driving force in a company. Can they cut the mustard, are they dynamic, do they have good contacts? I think so if you read the following profile.

Stephen Barclay, Executive Chairman

Stephen Barclay, aged 61, qualified as a Chartered Accountant in 1964 with Robson Rhodes before obtaining an MBA degree from Wharton Business School in 1967. In 1989, after a career during which he reorganised various companies, he established City Financial Associates Plc (formerly Clifton Financial Associates Plc) to provide corporate finance advice to small to medium sized private and public companies. In August 1998, City Financial Associates Plc was purchased by Talisman House Plc (now Seymour Pierce Group Plc) where he became group executive chairman. In December 1998, Talisman House Plc purchased an institutional stockbroker, Seymour Pierce Limited, where he became executive chairman. He resigned as a director of Seymour Pierce Group Plc and various other group companies at the end of March 2001 to found CFA Capital Group Plc. He is a director of a number of public companies including MICE Group Plc and Talisman First Venture Capital Trust Plc and is a governor of the London School of Economics and Political Science.

John Shaw, Executive Director

John Shaw, aged 54, qualified as a Chartered Accountant in 1975 with Touche Ross & Co in London. Subsequently he spent two years seconded to the Quotations Department of the London Stock Exchange returning to Touche Ross & Co to join the Corporate Finance Group until 1982. After a period as a sole practitioner, he joined Chase Investment Bank Limited in 1985, was appointed a director and founded the Equity Investment Group, formed to invest in unquoted companies. In 1990 he joined Henry Ansbacher & Co Limited as an Assistant Director of Corporate Finance. He started working with City Financial Associates Plc in early 1995 and was appointed a director in December 1996. He was appointed a director of Seymour Pierce Limited in December 1998 where he was initially Head of Corporate Finance and latterly Head of Private Equity. He resigned from Seymour Pierce Limited and various other group companies at the end of March 2001 to found CFA Capital Group Plc.

2) They have turned a 2 million loss into nearly a profit if you ignore costs for discontinuing operations - that some turn around.

3) With only small market capital of 3.83M it's feasible to suggest they could make a good profit this year as they have already got off to a good start signing more clients.

A profit of half million would give a pe ratio of 7.66

1 million a pe ratio of 3.83

1.5 million a pe ratio of 2.55

2 million a pe ratio of 1.91.

So it would only take a small profit to make this company super undervalued. Consider the possibility they could achieve a 2 million profit this year, which is the least, I expect, we could be looking at a share price of 7p. YES THAT'S 7P (An average p/e for the sector is 16.) Even with a profit of only 1 million that's still an upside of 3.5p.

3) Consider the fact that some of their clients pay their fee by way of giving large share holdings to CFP. All it would take is two or three creamy companies to give them valuable portfolio holding which they could cash in at a substantial return.

4) The IPO is sector has already increased three fold this year. More and more companies are coming into AIM and from abroad then ever before. Rules have changed where foreign companies can use a fast track scheme to get on board more quickly then ever before. I'm sure CFA Associates are well positioned to benefit with this increase in volume.

5) We could see a re-rating this year in this sector, which would be the cherry on the top.

I rest my case, to me this is a no brainer unless you want to wait for the next results for proof they have achieved profitability. If that's your cautious approach, fine but by then, you can then expect a much higher share price then now.

Major Shareholdings:
Stephen John Barclay 64,600,000 11.66%
Pershing Keen Noms Ltd 49,610,000 8.95%
John Richard Shaw 29,400,000 5.31%

RNS Number:9414C
CFA Capital Group PLC
15 September 2004

CFA Capital Group plc
Interim results for the 6 months ended 30 June 2004
CHAIRMAN'S STATEMENT

Highlights

* Nominated Adviser to 20 AIM companies - broker to 15 AIM companies

* Currently handling a number of AIM flotations and other major transactions

* Strong second-half order book - solid outlook for year

* Turnover for the period up 95% to #510,000 (6 months to 30 June 2003:
#262,000 from continuing operations)

* Losses before taxation of #58,000, (loss 6 months to 30 June 2003:
#208,000 from continuing operations)

* Currently recruiting to further strengthen team

Introduction
I am pleased to announce that CFA is now retained as Nominated Adviser to 20 AIM
companies and broker to 16 AIM companies. The company is currently working on a
number of AIM flotations and other major transactions, and as such has built a
strong order book for the second half of 2004. The fees generated by this
activity, taken together with our underlying retainer income and largely-fixed
overhead base, leaves us well-positioned for a satisfactory outcome to the year
as a whole.

Sharply reduced losses for the first half were achieved even though we had to
incur costs on two flotations that were not completed until July 2004 which
generated revenues of #225,000. These revenues were not recognised in the
results to 30 June 2004.

Turnover for the period nonetheless increased 95% to #510,000 (6 months to 30
June 2003: #262,000 from continuing operations), with losses before taxation of
#58,000 showing a marked improvement from #208,000 (6 months to June 2003 -
continuing operations).

Following the sale of CFA Securities Limited in 2003, CFA is now firmly focused
on servicing the needs of clients who are essentially AIM listed companies run
by entrepreneurs. We now have a team of eight, comprising executives and support
staff, providing corporate finance and broking advice. We are in the process of
recruiting further executives to join the team. This recruitment will ensure
client service levels are maintained as we meet the increasing demand for our
services.

In accordance with my statement on the results for the year to 31 December 2003,
CFA started the beginning of 2004 with a good pipeline of work and with a degree
of optimism that market conditions would enable these deals to be completed and
this was the case in the first quarter to 31 March 2004. However, in the second
quarter, in a number of cases transactions that we anticipated completing in the
first half have either been completed since the end of June or have been
deferred. This adversely affected our earlier expectations of financial
performance in the first half of the year.

Financial review
Despite these factors CFA achieved a creditable result in the first half.
Turnover was #510,000 (6 months ended 30 June 2003: #262,000 from continuing
operations), overheads (including plc running costs) were #609,000 (2003:
#458,000 on continuing operations) and the loss before taxation for the period
was #58,000 (6 months ended 2003: loss #208,000).

These results need to be seen in the context of our having completed the
flotation of Smallbone plc (admitted to AIM on 26 July) and Ragusa Capital plc
(admitted to AIM on 15 July). No income is taken into account in the period in
respect of these transactions, although a significant amount of the costs
relating to these flotations were incurred in the period.

CFA is now retained as Nominated Adviser to 20 AIM companies and retained Broker
to AIM 15 companies. Annualised recurring income currently totals over #340,000
representing approximately 30 per cent of total budgeted group costs, and we
anticipate that our level of retainers and this source of revenue will show a
significant increase by the year end. Our increasing base of retained clients
not only provides a source of recurring revenue but is also a prime source of
transactions.

On 27 May 2004 we announced a placing of 65 million new ordinary shares at a
price of 0.7p per share, to raise #441,340 net of expenses. As at 31 December
2003 the net assets of CFA Capital Group plc were #534,000. The impact of the
placing and the small loss in the period, has been to increase the Group's net
worth as at 30 June 2004 to #914,000, creating a sound financial base.

Current trading
We currently have a strong order book both in respect of a number of AIM
flotations and other transactions partially arising through our existing client
base. On the basis that we complete a good number of these transactions, we
anticipate a satisfactory outcome for the year as a whole.

Summary
On 31 July 2004, John Shaw stood down as a Director of CFA Capital Group plc and
all Group companies. John has worked with me for over 10 years and was a founder
shareholder of the Company in 2001. The Board thanks John for his significant
contribution and wishes him well for the future.

The Board also extends its thanks to the entire team for their efforts so far
this year.

the actual bid/offer price online is

bid .6
offer .67

with comdirect

I cannot understand why we still have .55-.75 showing. Can anyone explain please?

Hi slmchow, The market makers are not interested in making a market for these at the moment, applies to most stocks during different times when simply the market makers can't be bothered to make a market for stocks which is what their job entails.

When the price rose to 1.65-1.70 pence from these prices the showing spread only use to be about 2-3% at the max' and now they are just trying to kill any trading with the showing spread of 20% which has been the case since the AGM.

Thanks Sue

actual spread is just less than10%

current bid/offer price online is

bid 0.7
offer 0.76

with comdirect

Hi Slmchow, price up 11.5% today, the market makers finally woke up.

yes with light volume. they are trying to attract some sells but have actually only got only a few bites. The first trade today was actually a buy. the lucky person got in at .65

True, some delayed buys have started coming through at 0.76 pence, more may come later.

Doing well today, up 19.2% now...

Up 23.00% now after a bullish candlestick appeared on the chart for yesterday.

Up again Sue .

bid .74
offer .88

Glad we got some momentum today. Any reason why? When are the results coming in

Results out on 30 September 2004.

Thesaurus

A comment made on the other board that "it could be somebody joining them on the board that is exciting the city !!"

Also SB hinted in his interview of June 30 of something is in the offing in 2 to 3 weeks time

For those interested I have copy and paste below (many thanks to growth dabblerfor the transcript)

Transcription of ADVFN Interview with Stephen Barclay (CFP)on 30th June 2004
by Growth Dabbler - 04 Jul'04 - 17:04

Thank you all of you for joining us. We have with us Stephen Barclay, CEO of CFA capital group PLC. Thank you for joining us Stephen.

It's a pleasure. I hope it is at any rate.

(Laughs) I'm sure it will be. We have a very, very long list of questions for you. I think, but what I'm going to ask you to do first of all if you would, just spend a couple of minutes introducing the company for those who perhaps don't know it so well and give us an outline of where it's going.

OK, CFA was established approximately three years ago. By myself and John Shaw. We were joined within the business by Tony Rawlinson and John ????????. Er and we established a NOMAD corporate finance business. Having established Abinger investments as a cash shell, Abinger bought Abacus which became CFA (or City Financial Associates) and at the same time we bought the Manchester stock broking business, which became CFA securities - that was in December 2001. And over the period since then CFA Capital Group which is the remaining of the company which you're now investing in or wanting to invest in, has one operating subsidiary which is called City Financial Associates, which is the old Abacus business. CFA Securities - we sold off the stock broking business last year and sold the shell back to Mark Sheppard. Because, within City Financial Associates, we had established the corporate finance business and became stock exchange quoted, we got the stock exchange membership so that we could undertake corporate broking business and become what essentially we are today which is an old-fashioned issuing house where we act as NOMAD to 19 companies and broker to 17 companies, and we're increasing that number, and we have within City Financial Associates a staff of 10 and that is also growing. I think those numbers explain the development of the business which is a focused corporate finance broking business. Focused on AIM companies and focused on serving the needs of entrepreneurs on the AIM public capital markets.

OK, now you say you're focused on AIM stocks - I'm just wondering, you'll have to excuse my ignorance of the company, but obviously the IPO market has not been great, has it been a different story on AIM. The AIM index was up from the FTSE 100 quite substantially ?

I mean, I think the participants who are probably all active investors in AIM companies, know AIM is a fairly active, vibrant market. There have been a number of new issues in the last 9-12 months and a number coming on-stream. I think at the present time there are a number of aspirants wanting to come to the market, some of whom are falling by the wayside. I may say that, touchwood to date, none of our candidates, and we do have a number, have fallen by the wayside and we do hope that that will continue to be the case. AIM is a vibrant market. Number 1 because there is a tax incentive, both through the EIS scheme and VCTs which encourages investors, there are also other tax reliefs on inheritance tax and its also where there is the ability to back growing companies and speculators will also. It is a very successful and active market, we enjoy being there and we enjoy helping people develop and succeed and we also enjoy helping people who perhaps have problems - sorting out the problems because that's one of our areas of specialty.

OK, good stuff, now I'm not going to waste any more time asking questions myself, I'm going to go to the list that people have been frequently posting questions on for you, and I gather that you've had a look at them already, so if we start at the top and go through them, hold on..., I've got to get to the top of the list myself. OK so, the first question "Why haven't CFP set up a web site ?" almost all other companies do, it seems like a nice opportunity, you could have your share price on there and the progress the company is making.

The answer, we haven't set up a web site is quite simple, we have plans to set up a web site and we have drafts which are being considered, we also have a fairly active work in progress schedule and er, one of the...we do need to have a web site there's no discussion and we will get it done within the next 3 to 6 months. But, it's not been a hinderance to getting new business opportunities and what we...we do aim to be proactive and service clients needs, therefore we want to have a controlled development of the business. But I know they will..having a web site facilitates people knowing more about who they're dealing with and therefore it's an information means and we should have it. It will be there. But I don't think it's the be all and end all of life.

Hmmm, yep ok, so what what was the timescale you mentioned.

3-6 months.

OK, well we'll keep an eye out for it in that case and next question "Why did the company not support the share price at 1.5p, did they not think that the price was reasonable half way in the year". I don't know quite what you mean "why did not company not support the price", we issued a statement saying that we did not know the reason for the increase in the price. Remembering the price had gone up from 0.35p to, within the last 9 months, to 1.5p and there was a lot of activity from small buyers and there was a lot of activity on the chat lines. I believe, personally, that the share price on any day is but a moment in time and that if people invest our company, I hope that they're not investing for short term speculative reasons, but because they want to achieve growth over a longer period of time - that's our objective and intention. And we would hope and anticipate that the share price can return to the level it was and perhaps succeed that level, but in order to do that we have to show performance and generate the income and the netting, net profits that support such a share price.

Hmm OK now the next question is about the latest placing - is that an incentive or an aggressive move by the company.

It was neither, it was an opportunistic move. We were asked did we want to raise some money, we had no need to raise any money but, in my experience, it's a very good thing to do if you don't need to do something, to do it. Because you never know when, as they say, Murphy's law hits you and you need the resources, and it was a relatively small amount of money. It also set a level, (below), a level for the share price to show the confidence.

So, what's that gone towards, or is it simply working capital.

It's just gone into, it's gone into cash at bank.

And the next question is, "What is the CFP vision for 2005 and how are you going to achieve it?".

We have a very simple business plan which is to develop our niche investment banking business in the marketplace that I've already described. We already have quite a lot of business in-hand, which obviously needs to be turned from potential to reality for 2004 and 2005 and we want to be recognised and established as the leading NOMAD broker in the AIM market within 2005 or by the end of 2005.

We already have, as I said, 19 NOMADships we would expect and anticipate to substantially increase that in the next 6 months. And if one takes a level of growth over the last 18 months and draws a line on a graph, you could anticipate the growth going on through 2005. We also want to develop alongside that a corporate team which is able to service our clients needs and be professional and be, as I said earlier proactive. We do take an interest in our clients, we do monitor their activities fairly carefully, we also try and plan forward with them, with their financial calendars and their needs, so that we know when they're going to do, what they're going to do, so that there are few surprises and we can be helping them grow.

Is there anyone else doing exactly the same as you - who are you up against ?

We have..In any marketplace, there are competitors, we have a number of competitors - whether they think we're competition, I wouldn't know. So, when people want to appoint nominated advisors to seek an IPO they either will come to us, because they know us and know what we can do, or they've been referred to us or they'll go around 2 or 3 other people. I'm not necessarily going to name names, because - why give free publicity? However, we hope that when people come to us, they know that we can do a good job for them and they'll return and they'll sing our praises.

Now we've got some question about the growth of the company - "Are you considering acquisitions or is it all going to be organic" ?

When acquisition opportunities arise we obviously look at them. We did actually look at an acquisition opportunity earlier this year which would have been an interesting acquisition. But the vendor, for reasons best known to themselves, withdrew the company for sale within a week of having accepted bids. They never have fully explained the reason for that. And that's the sort of marketplace we're dealing with. So, if the right acquisition opportunity arises which is complementary to our existing business we will of course look at it. I could give you a business plan which could look very interesting, but we would prefer to develop that from a firm sound base. And in order to have a firm sound base, we have to prove, which we think we're going to be able to without doing any forecasts, the profitabilty of our existing business and the growth of our existing business.

So you're concentrating more on growing the business as it is rather sticking your neck...and finding somewhere to take-over

Absolutely correct.

Having said that, there'll probably be a fairly exciting opportunity tomorrow....

And it'll all be different.

OK, last week Shares mag featured the top 10 floats during the market up to August, about 70% of them will be AIM listed, yet CFP didn't feature on any as nominated advisor. Any comments on that ?

That's very simple, we don't announce our IPOs or floatations until we're certain of receipt, because we don't like letting our clients down or providing information in the marketplace that's not going to be fulfulled. I think you'll find and I didn't go through the list myself one by one, that there are a lot floats out the marketplace at the moment that are being pulled or being re-looked at so that they can be structured in a different way. We're actually benefitting from one or two because we've been offered to take on the responsibility as NOMAD when they failed with someone else. But we do have a number of companies we are bringing to the market within the next 2 to 5 weeks and I think you'll find that CFA features fairly prominently in the companies coming to market, on the AIM market in the next, as I said in the next 3 to 5 weeks and people will be pleased with our performance. Without flagging it up an advance, we prefer to show achievement rather than anticipate achievement.

So, what kind of timeframe it is usually between the announcement of the IPO and the actual flotation itself ?

An announcement of.. it depends on which company you're talking about. Some people announce them way in advance. We've announced one company which we anticipate will have its first day of dealings within July, which is a company called Smallbone, which is the specialist kitchen company, but we haven't yet issued the 10 day notice. And we normally make the announcement when we issue the 10 day notice which is a 2 week timescale - other people do it way in advance.

So looking at a list to August isn't exactly the right way of finding out about what you're up to.

Correct.

OK, moving on to the next one then "When CFP issued an RNS earlier this year to say that they knew of no reason for the share price rise, were they commentating on the short-term price movement or concerned about the market cap. ?"

I mean, we were looking at the short-term price movement which obviously reflected the market cap. And the share price moved substantially, following perhaps the placing of a large holding in the company and perhaps excitement in the market, perhaps. And obviously when there's a rise in a share price, more than 10% of the stock exchange wonders why - and we had to explain the reasons.

OK, now the next question is making the presumption that the retirement isn't too far away for you, how do you intend to benefit from your large shareholding in CFA. What route for you personally will be the most practical for disposal.

Someone who has read some of the questions said to be earlier that they thought that this was retirement, so if someone would like to define to me what retirement is, I'd be very happy to answer the question. But, er as far as I'm concerned I can stutter about it, but my job as chairman of CFA is to build it up, develop the management team. One never knows when the number 28 bus is going to come along so one's got to be prepared at any time for the company to continue and develop and I think CFA could do that very easily today without me and hopefully do it better with me. That's at the end of the day for the shareholders to judge. And we are as I said earlier building up the management team and the leadership and I hope we will become more significant in our marketplace, although I think we're beginning already to be recognised and with that will come an increased strengthening of the executives.

OK, erm, then the next question is "What would the attitude of the directors be, if there was a sensible bid made for the company?" Would you welcome or would you fight this situation? Is CFA up for grabs at the moment ?

He he he We are a service business depending on the people within the business, if someone wants to come along and talk to us, obviously we will be willing and able to talk to anybody, though we have to do what is sensible for the shareholders and sensible for the company as a whole. And we would obviously consider any opportunities, as I've said earlier, that were there. We, I don't think, on impulse would reject anything - that's not the most sensible way of going through life. We have had discussions in the past on various ideas, which didn't come to fruition, and we are in an interesting marketplace.

OK next question then. "Is acquisition to build up the ????, part of the company's forward thinking strategy" - well we've covered that one already - so lets move on to the next one. "From a shareholders point of view......?????. You are bringing out a web site in 3-6 months time, is there any other kind of way you communicate to shareholders, what it is that you're doing ?

I mean, there's an implied assumption, that because a company's on AIM, it should have a very active and aggressive PR campaign. My experience is that, if you go out and put your head out, it can easily get chopped off. I and we would prefer to perform and show our performance rather than going out and singing our praises. And I've always personally taken the point of view that I don't want personal publicity - because it can come and hit you later. If that doesn't appeal to people, I apologise.

OK, well that's the company's decision at the end of the day. If we move onto the next question, "Where will the company see itself in 2-3 years time with regards to market cap." Well that's obviously a veiled question on where you think the share price is going to be - you can answer that if you wish. But perhaps in 2 years time what is the profitability is more likely to be like

He he he. Well that begs the question for a company like ourselves in the marketplace we're in at the present time it depends on the temperature of the water. If we've got good market conditions and good conditions whereby we can bring companies to market and raise money for companies, then that's going to benefit our income. If we go through choppier waters, as they have been earlier in the beginning of this decade, then that's going to hinder, so to say where we're going to be is very contingent on market conditions. We obviously want a line that grows steadily upwards with growth in income and growth in earnings and we see no reason (subject to market conditions) for that not to occur. We're excited by the business we've got in hand and the business we've got to anticipate. We believe that the quality of our business is improving in the marketplace that we're in the quality of the companies we act for is always going to be a mixed bag and we enjoy the mixed bag, because, as I said earlier, we enjoy looking after companies who've got problems because they're intellectually as well as financially rewarding as much as we do companies that are growing and flourishing.

Can I just ask - you talk about this mix of companies that you work with, but are there any ??? in the kind of companies that you work with. Who decides in the company which companies you are going to work with - that's a whole raft of questions there I know, but I'm just interested what the process is. Whether people come to you or whether you're out there looking.

We're always...it's one's nature to go looking out for business. I'm always am neurotic if the phone doesn't ring when someone's contacting one of us making an enquiry. Fortunately, our phones ring pretty frequently and we get a lot of enquiries. When we get the enquiries we have an executive board of City Financial Associates and that reviews as a new issue committee any new business we take on or any new issue we do. We formalise that, and if there is disagreement between us we don't take the business on or if we have a client we feel we can't look after properly we terminate the relationship.

Hmm are there set hurdles for each separate company that you set before you will actually take their issue forward.

There are hurdles on the size, on the people, on the nature of the industry - all of which we have to tick the boxes on.

Is there a hurdle in getting returns on equity or returns on capital employed.

In the aim market there are hurdles a stroke, the hurdle there is that if people want to raise money, do we think that we're able to raise the money. We normally, when we are in those circumstances, do some initial testing of the marketplace, both in terms of the company where we have lawyer and accountant go in and look at the company on our behalf and we also take the company out to a select number of investors. Just to test it. So those are sort of hurdles - I don't know whether our competitors do that, but we like to do it because we don't like to either let clients or potential clients down and we don't also want to have used our scarce resource of time to no end.

So you do test the water before you make the decision..ok another question from the list here "Does the company envisage further placements and in future will a reason be given as to why the funds were raised instead of leaving shareholders to guess?".

At the present time we don't anticipate raising any more money, however the marketplace can determine that and if we think it's sensible to do so, we will do so.

OK "How does CFA see the benefit in granting large additional quantity of share options to directors which will create dilution for the existing shareholders and do you envisage further option grants in the future?".

I mean the reason for granting share options is to incentivise management and I think that happened and my experience is the incentivisation of management and employees is healthy and is encouraging and is worthwhile. And our policy and philosophy within CFA is for every member of staff to be so incentivised. So, I think that answers the questions you've posed. As we grow, so we will take people on and so we will incentivise. We'll also encourage them to become shareholders.

"Do the directors hold shares just in CFA or do they hold shares in all the issues that are made?"

Oh no no, just in CFA.

OK, just wanted to check that one.

"What are your views about a pending acquisition?" I don't know er if that person...

Tell me what it is.

Well, if someone knew or believed there is a pending acquisition and is logged in at the moment, please er clarify your question for us and then well see what Stephen has to say about it.

"When will you float decent companies?" this is implying that the companies you float aren't decent companies and that's so rude, but "when will you float large companies?" as they explain around the end of it.

I think that you'll see over the coming weeks that we are bringing a variety of companies to the market. We started out as a new business effectively two and a half years ago and if you look at the transactions we've undertaken (which I think now number about 40 in that period) they have ranged in size. Obviously in the marketplace we're in which is the lower end of the AIM market, with the resources we have and the size we are we cannot undertake jobs we can't properly fulfil. But the quality of the businesses that we act for improves, as I've already said, we will always continue to have a mixed bag of clients, because one of the services that is needed and we provide is to help companies that are not in great shape. We did that recently with a company where we were able to find 2 million of extra equity for them within a very short period of time when the competition wasn't able to do that. That company had we not been able to that would probably not be around today.

Now we had, I think Chelwood is logged in, I think he must have been the one who posed us the question about the acquisition. If you want to say some more, Chelwood feel free - I'm not saying you'll get an answer, but its always worth asking the question. And this next question that we've got posted here "How much cash does the company have left?" now we saw on your balance sheet up to December I think call it 5/2 million, now you've done a placing since then.

We have.

So how much does that leave you with on your balance sheet at the moment ?

Er, that's an interesting question which I will try and answer. Our accounting period is 30th June which is today so shortly we'll be able to tell you., but I would think our cash resources are near, or around the 7 figure mark - I mean somewhere between 3/4 of a million and a million.

OK, so when are we going to have the actual next erm..

Well our interims are 30th of June, so we will be reporting, last year I think we were reporting in early September. Sometime in the next 2 to 2.5 months we will be reporting.

"Why don't you report quarterly?". Hmm usually in the UK people report half-yearly - are you thinking of reporting quarterly ?

No.

No, would be unusual unless you were trading in the US. "Would you consider a merger if the terms were attractive to all parties?". Now we did talk about if a bid came along - I assume your comments apply to mergers as well or is that a different kettle of fish?

I don't know what a merger is - a merger is either an acquisition or a sale. So, and I think we've covered that.

"What do you consider is the future of new floatations in the next 12 months?"

I mean that market for IPOs at the moment is that if the company is a good company, you can raise the money but pricing is particularly sensitive in the present conditions. And investors and certainly institutional investors are being quite demanding. However, if the company is right and the people are right, we believe that it's possible to raise the money.

We've had a couple of callers coming through here saying that you should keep the reporting half yearly and concentrate on improving the revenue, there you go - you have the permission to carry on.

Ha ha ha.

"How about a more regular RNS feed of new clients and new floats?" You did mention Smallbone, I've seen that's obviously public information - but you didn't put an RNS out on that - is that true ?

That is true yeah. I mean this comes to a whole area of public relations and we could go around announcing every new client we took on - it's not our style. Our style is achievement and to tell you (our shareholders and our support base) what we've achieved, not what we think we might achieve. Because essentially, we don't like letting people down. And we are in a marketplace where things don't always happen which we anticipate or they anticipate.

I don't know whether our competition put out announcements every time they take on a new client - I don't think they do.

You'd rather not make too much noise when it's being announced and wait for them to prove themselves in the market.

Correct.

????? rather than ramping it up beforehand.

You used the words - ha ha ha.

I did didn't I right erm. The suggestion here is that once a month you should put out an RNS, but you know you've covered your reasons for now doing that so, lets move on now this one is a rather longer post again and is referring to Shares mag. And we've already covered that and the last question on it is the one we asked you earlier as to who approaches whom when it comes to a floatation. You say your phone does ring and your out looking for business too which is good "Have CFA invested in Setstone since it was suspended?" if so, how much and why and why did you choose not to inform your shareholders and if no, what do you plan to use the 430K for that you raised recently? We've covered
that already but maybe you could comment on Setstone.

Setstone shares are suspended at the present time and the board will no doubt announce in their own time what they plan. CFA does have a small shareholding in Setstone and you know that's the position.

So you haven't taken any more..

Not as far as I know.

SJA is asking "Stephen do you have to believe in a company you float, you take quite a lot of shares in them after all ?"

That's a very provocative question. The answer is that we support our clients and we would hope that we can believe that what they're going to do, they're going to do. However, I have a certain experience in this area of activity and ones hopes at some points are disillusioned.

Well - you win some you lose some. "How much more work can the current workforce handle without having to take more people on board" Have they been working flat out?

I think you can ask them, ha ha.

Do you think they're all working flat out ?

I left the office last night at around quarter to 7, 7 o'clock - I remember it was a tube strike and there were still 3 people there working and we've got that most nights now at the moment. And that's, if that's a measure, I think that you can draw your own conclusions. But, we are recruiting because we are, we have quite a lot of activity on, and as I said earlier we like to fulfil our obligations and service our clients needs and be proactive.

OK, well you heard it here first, they are recruiting - send your CV's to Stephen tomorrow if you want to work for them. "What in your opinion are the strength's and weaknesses of CFA?".

Well I can give you lots of weaknesses, ha ha. Well, on the strengths is that we are a hands-on team and the reason that we set the company up is that we want us to be close to our clients and not be sitting in rooms strategising or administrating, but we wanted to look after clients. And that will be our continuing objective. And we have a reputation of giving people advice straight, so we don't not try to cover it with nice words. If you feel something you tell 'em. Some clients, I think most clients, like to know where they stand. Sometimes it's not particularly nice, other times it is. And we expect to receive the same back as we often do. But ,you know, if you give it you have to take it. So, we're hands on, we are proactive, we are service orientated so we, our business is to look after our clients needs. So, I think those are our strengths, and we also try to be professional and enthusiastic which all goes with that. And we don't want to let clients down - so we fight very hard before we say that we can't do something. Or if we don't feel that we can do something, we tell them straightaway.

Our weaknesses are that we're human beings and we're small, er and we're a young company.

OK, well we've got some comments coming through here a bit of a follow up from the recruitment question - "How difficult is it to recruit the right people?".

The people we've taken on either get referred to us by word of mouth or through specialist agencies. The majority of people we've taken on to date have come from word of mouth. Because it's a fairly small village that we work in - and that's how we get them. We have had people we've taken on and they've either left of we've asked them to leave because whilst, and we're still friendly with all of them, they just don't quite fit in with our style.

So, what does it take to become a good issuer of AIM equities?

What's it take to be a good member of the CFA team, ha ha ha.?

Put it that way then...what does it take?

A) is to be able to fit in a complement with the principles and I don't think that any of us would say that we're easy people. To be hardworking, to be enthusiastic, to be react.., when I say reactive to react positively in situations and also to be client friendly. So, we like our executives and staff to integrate well with the clients.

So it's very much a people business then?

That absolutely.

OK, I'm being asked if I'm pitching for a job here. "When is Setstone returning to the market, have you invested in Setstone...." the vast part of that we've already done - but do you have any idea when they're returning to market ?

I personally don't know.

"In time when CFA becomes a larger company, would you consider coming out of AIM and joining one of the small cap indices?"

If it was appropriate, yes. But, I mean, there's a lot of sense for companies today to remain on AIM. And certainly clients that we have or could have who are on the full list were also encouraged to come onto AIM, because of the benefits of AIM both in documentary terms and in tax terms.

And what about the companies that you list, would you consider doing companies that want to list on the other indices?"

Absolutely.

What advice would you give to a potential new shareholder who is considering purchasing CFA shares?

I'd say - be comfortable with our area of operation, check on our reputation in the marketplace, that because we're a small cap. Company sometimes liquidity can be difficult. Be comfortable that if you're buying in, you may not be able to get out as quickly as you might want to to cover all sides of your investment. And enjoy yourself.

"What period of time would you encourage an existing shareholder to invest in CFA for the best possible return ?"

It depends on their own needs and requirements. You know, I personally (talk over) - it's got to be profitable yeah.

"Do you have a successor plan in operation for when you retire?"

I think I've already covered that.

"What would your dream scenario be for CFA?"

Oh, the dream scenario must be to be advising the M&S board or Mr Green on the acquisition of M&S, but that's totally impractical. Ha ha ha.

'Cos there not listed on AIM for one.

But we can....Is to grow CFA into a significant business - significant being 2 or 3 times our size at the present time and to develop it with a team that is recognised in the marketplace as having outstanding ability and performance and having a client base that it growing and achieving some of the benchmarks, whether it's awards or performance.

This is a follow up question on headcount where you say you've 10 at the moment. How does that relate to where you stood at the end of 2003 ?

2003...Well at the end of 2003 we had just taken someone on. In 2004, we have taken on, I think, another 2 people. So, you know, in terms of percentages it's quite a large percentage, but in terms of numbers it's not huge.

"What percentage of the company is currently owned by the directors respectively?".

I can think that probably, I think I've got a shareholder list strangely enough.

You're just checking...

Just checking the list if I've got it. It's probably around 30% I would have thought - but I may be wildly wrong.

Can I ask your personal holding ?

My personal holding I think is about 15 to 20%. It's not something I look at daily ha ha ha.

This is another question specifically about the mandates "Do you feel volume, quality or size is more important when it comes to mandates. Do you consider in terms of your overall target market that the company is returning a satisfactory share and related to this are you exceeding your expectations?"

Well, I think you asked about 22 questions - shall we take them one by one. When we take on a mandate...when you say volume what do you mean?

I'm guessing, that the total number of shares that they're going to issue ?

I mean in terms, we always look at the quality and we also look at the size. Because too small, two weeks ago we turned something away because it was too small, it was a nice business and the people were nice, but it was just too small. And again if it was too large, we'd also have to share, bring in another company in - someone we want to do it with or turn it down. So, I think that they are both factors. In terms of number of shares that's a technical issue rather than a qualitative issue.

OK, now the second part of the question "In terms of the overall target market are you obtaining a satisfactory share of your target market?"

Since we started off from a nil base, and we're growing I think that we were relatively comfortable with the amount of business that we were generating as a percentage. If one looks over the past 6 months the 3 IPOs we've achieved are relatively few. If you look over the next 6, 3-6 months we hope and anticipate the picture will be different. But that's still to be achieved. So, where we are as of 30th June, the answer is we are happy, but we could always be happier.

OK and relating to that question, "Are you exceeding your expectations?". Oh, I think expectations change. When we started out, the marketplace was not particularly easy. I think where we are today and the type of transactions we're undertaking, I think are more interesting and challenging than I'd have anticipated a year or two years ago.

"What kind of market profile are you trying to project for the company?"

I think I've covered that in a variety of ways.

"Why should any potential investor consider investment in the company rather than in one of it's competitors that has a stock market quotation?" There are obvious competitors who are listed, why you rather than them.

If you look at our rate of growth and our performance it'll be a more interesting insight. I think I know one competitor where, who've been in business a number of years, we've got half their overhead base and the same volume of business.

The next question is about conflict of interests. Part of your fee is in the form of client's stock, now obviously you carry on advising them after they've floated on corporate and strategic matters, now doesn't that create some kind of conflict?

I think our conflict, I don't think it's an existing conflict, because one has to have integrity in giving advice. Now if we believe something's right or wrong we pursue it and we do have those circumstances. Having a warrant, option or shareholding as part of the fee structure is part of the nature of the marketplace. It is something which we've had discussions with the AIM team about and whether they will issue a directive about it, I don't know but I think it's taken that having a warrant or an option of say up to 5% is an acceptable number and certainly if you take across the water in the United States as a benchmark, that is common practice. I think it is reasonably common practice, or it was certainly in the dot com times and over here, well still fairly acceptable.

"In what circumstances could you envisage shareholders as opposed to a few collective trustees being approached to provide you with more funding?"

I think that is a function of cost. In order to approach shareholders for funding and have an open offer or a rights issue which means it needs ???? which means it needs a working capital which costs money. And the first thing that shareholders would criticise us for is that if we started having an open offer or a rights issue to raise a small amount of money and then the costs were going to be a large percentage of that cost. And one of the attractions of AIM companies is that we're able to do small placements. That is always not, I would agree, beneficial to the small shareholder.

But are you happy to have retail investors on board?

The retail investor is a function of the AIM marketplace, yes they are encouraged, I think they are very necessary and in many cases are more loyal than the institutions.

"Would you ever consider a share consolidation - bearing in mind that the company is a penny stock?"

Yes is the answer.

Do you have a timeframe on that ?

No is the answer (laughs).

OK, so at some point perhaps in the future..

One of the people who I think is listening will chuckle (laughs).

"Could you describe the size of your market and your projections on your performance to grab part of this market within the next 3 to 5 years?" Now we've talked about how you will be growing but what's your actual size of the market you're in.

Depends, I mean the volume of activity in AIM goes up and down depending on the economic environment. And particularly in the AIM environment, we are minnows in the marketplace. Obviously when I've said that we want to become a major force,we want to have 10, 12 and a half percent of the market. I don't think and I don't think that we think that's an impossible objective, but it takes time to get there. However, if we do that organically, it takes longer than doing it by acquisition, but why pay a lot of money if one has to pay a lot of money acquiring market share when it can be achieved by internal growth.

"Why haven't the directors bought any shares, how much capital has the company got left and when do you expect to go out of business?".

I will bite my tongue at that one (laughs).

"How profitable are the company at the moment in terms of percentage of revenue?"

I mean I can't, don't think I can technically give an answer to that because it's a forecast, but we are operationally geared, because our overhead level is relatively fixed dependent upon the number of people we employ. Er, a la revenues, grow and we could do a tran, we are able to undertake transactions, we've got quite a lot on at the moment, I think I can say that. And we have to work longer hours, but that's the nature of the beast. And as income grows, so the bottom line grows and it is a very profitable cash generative model (provided it works). If it doesn't work then because of regulatory capital, one needs to bolster the regulatory capital. Over the period from when we've started to date, we've done that and we believe that we're at a comfortable place now and that there's a good rate forward and we're excited and anticipating providing good news - we hope we will.

Questions from the floor - Chelwood is repeating his question "Would you ask Stephen again when he expects to complete that acquisition?"

If you told me what the acquisition was, I would tell him when we're completing it.

"How do your staff react to the low par share price"

I don't think they do react, because the executives are there for the long term, I don't think that they particularly look at the share price day to day.

Marnewton - "Can you tell us about your involvement with SFI group's return to the market?".

Yeah, I mean, we acted on behalf of SFI and advised them and a satisfactory transaction was concluded.

"Are you expecting directors to buy shares"

Well as we're in effectively a closed period...(laughs).

Not until after results, if at all.

OK Chelwood's saying "He knows,I don't" when it comes to that question about the acquisition.

Then he must know something I don't.

"When the price was 1.5p why didn't you do anything to support it?".

I don't know what we're meant to do to support the share price.

But I don't know either (laughs) I'm a little bit confused by that question.

I'll go out and work how much I'm worth (laughs).

So, we've got some thanks coming through "Thanks Stephen - mostly encouraging" from nevgroom, "Thank you Mr Barclay" on behalf of the CFP bulletin board and I'm going to say thank from everyone at ADVFN as well for coming here and giving us an hour of your time today. And hopefully, if you want to come back and tell us about any developments with the company feel free to call me up any time.

Thank you. Thank you very much.

Setstone PLC
30 July 2004

Setstone plc (the 'Company')

Resignation of Advisers

City Financial Associates Limited has today resigned as nominated adviser and
broker to the Company.

The Company's ordinary shares were suspended from trading on AIM on 7 April 2004
at the time of the announcement of signed Heads of Agreement with SHG Gold and
Silver Limited. In view of the size of the proposed acquisition it will be
subject to shareholders prior approval. It is expected that a document
detailing the acquisition will be sent to shareholders shortly following the
appointment of new advisers with mining experience.


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

The 12 mil shares they own of STN and also an advisor can lead to conflit of interest. But the appointment of new advisers with mining experience will be good for STN , their share price and CFP's stake

just as you thought it was safe

the dead has returned

dadadada

bosley how are you old chap

i needed some time in my crypt so no postings

hope you guys have been watching out for the chickens running
i have and there has been one or two

so a director has left but hes not sold his shares

why??????????????

or does the dead know why

maybe but if you had 29mill shares and you thought you might know something
would you sell your shares

and as for the second share placement

imho i dont think they are going for his shares

i think(and its only my opinion)

a takeover is on its way

reason for thought

anyone played poker

whats the key to the game never let your oponent know what you have

ill explain

first share option no one knows why it took place
lots of speculation but money is still in the bank
??????????????

ok second placement why more money but no reason for it

not unless your are a poker player there isnt

first placement swallowed up but money not quite enought for what we want ok

director resigns but keeps his shares(29 million)hmmmmmmmmmmmm

and just like tonys bad news hidding another share placement takes place under bad news release and its swallowed up

add first and second ammounts and hmmmmmmmm we seem to be getting closer to the amount we need

now this is imho but think about it before you say this guys dead
lol

anyway im back and bosley saw i was

lol

Fred

Wouldn't dream of saying you are dead, but would you like to explain a little further. Do you have any idea how much CFA earns for their advisory work and what sort of profits they may post in September? Would be interesting to find out and if a take-over is in the offering, what value on the shares are we talking about?

Regards

PTH

I still think that they are `gunning` for IMG (formerly Seymour Pierce).
good time to top up over next couple of weeks, as I think serious announcement will be made prior to results in September. only my opinion though.
good luck to all