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!

Thursday's Leaders & Laggards
MoneyAM
Real Affinity, Prime People, Spirent, Courts, Xpertise Group, Smith & Nephew, Property Fund Management, lastminute.com in focus...

Notable LEADERS today include Real Affinity, which stormed ahead 40% to 0.875p on the release of greatly improved final results.

Prime People were ahead 27.7% at 5.75p after announcing the sale of Portfolio International Limited to PSD Group for a reported 1.95m.

Spirent climbed 16.7% to 55.75p after releasing a good set of interim results.

Courts recovered by 14.2% to 100p after confirming details of an improved credit facility. This reversed the recent trend which saw them appear in the MoneyAM Constant Fallers list.

Baltimore Technologies, up 16.3% at 26.75p and Global Energy, better by 20.6% at 140p were among the other main leaders today.

Notable LAGGARDS today include Xpertise Group, down 16.6% at 1.25p, despite posting improved results, suffering from profit-taking after ecent gains.

Smith & Nephew were down 13.6% at 460.5p when results featured a fall in US sales and spooked the market.

Property Fund Management slipped 12.9% to 107.5p after issuing a profits warning and lastminute.com dipped 11.9% to 111p when worries about forward earnings emerged from their results published today.

For you guys :

Smaller companies spotlight
Pat Lay's
small caps, This Is Money
5 August 2004


Real

A growing confidence in the media sector helped Real Affinity, the Aim-listed direct marketing and communication group, to reduce pre-tax losses to 37,770 from 1,298,000 in the year to end March. Chairman Tony Douglas says he is confident the company is now positioned to increase the value of its business and enhance shareholder value.

http://www.dailymail.co.uk/pages/dmstandard/frame.html?in_bottom=http:%2F%2Fwww.thisismoney.com%2Fnews.asp&in_page_id=1804

Also :

Beyond the Footsie: Thursday close
5 August 2004, This Is Money

Press mention : Daily Mail Newspaper

But on the upside with small caps, Real Affinity shares topped the gainers board, bouncing back strongly after recent falls, adding 0.38p to 1p - a gain of over 61% in value - after the company disclosed much-reduced pre-tax losses in the year to end-March.

Real Affinity's turnover, however, dropped 23% 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, the group said.

http://www.thisismoney.com/20040805/nm81162.html

Just wonder how much this is worth to them:

LONDON (AFX) - Real Affinity PLC said its sports marketing arm Navigator has
signed a major agreement with the European Athletic Association ('EAA') to
provide the marketing of the partnership/sponsorship packages which form part of
the EAA'sChampionship Series of events.
Commercial rights to the Series, including the broadcast contract already in
place with the European Broadcast Union ('EBU'), are valued at around 40 mln
eur.
The EAA is responsible for a range of high profile international athletics
events including the programme showpiece, the European Championships, to be held
in Gothenburg, Sweden in August 2006, the European Indoor Championships and the
annual SPAR European Cup and SPAR European Cross Country Championships.

Top % Gainers
# EPIC Name Price Chg %
1 RAF Real Affinity 1.0 0.375 60.0
2 PRP Prime People 5.75 1.25 27.7
3 WGT Wigmore Group 0.265 0.05 23.2

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 ?