DGT Dowgate

    Dowgate Capital plc / Ticker: DGT / Index: AIM / Sector: Finance        

               Dowgate Capital plc (`the Company' or 'Dowgate')                

                                Trading Update                                 

Dowgate Capital plc, the AIM quoted financial services group focused on small
companies, is pleased to provide a trading update highlighting the progress it
has made following the publishing of its interim statement in September.

The advisory business continues to perform strongly, with second half revenues
for its subsidiary Dowgate Capital Advisors (`DCA') significantly higher than
H1 figures. Costs are being maintained at budgeted levels and overall the
business made a significant profit contribution. During the period DCA has
overseen the IPO's of four AIM companies, and has undertaken a variety of other
transactions including a reverse acquisition by Garner International Plc, the
introduction to the Official List of Athelney Trust Plc, a Class 1 disposal for
Culver Holdings plc, the disposal of PPDG by Network Group Holdings Plc, as
well as a number of takeover code related transactions.

DCA's pipeline is satisfactory and includes a number of possible flotations and
other transactions. Whilst the number of retained clients has reduced
marginally, retainer income has been maintained and the Company continues its
ongoing search for new advisory clients. Significantly, market conditions have
resulted in far more quoted companies falling within DCA's target market, which
it is well suited to act for given its small cap expertise and ability to
provide its services cost effectively.

Performance in our stockbroking subsidiary, Dowgate Capital Stockbrokers
(`DCS'), has been very much affected by market conditions. The Company's
private client stockbroking business has held up reasonably well, albeit with
commissions down on the first half. However, revenue from corporate broking
activities has been significantly lower. Corporate broking retainer fees have
been broadly maintained but other revenue for the period was significantly
lower, reflecting the dearth in small cap fundraisings since the summer.
Conditions are likely to remain tough into the New Year but DCS's corporate
broking team will continue to seek new client and fundraising opportunities.
Meanwhile, operating costs have been reduced significantly following the
departure of one of the recent hires.

Overall, both DCA and DCS's private client stockbroking businesses made
positive contributions, continuing the pattern of trading highlighted in the
Company's interim statements in September 2008. However, due to exceptional
costs, including the establishment of DCS's City based corporate broking team
and the continued weakness in corporate broking activity, the Group will make a
loss for the year and so will not meet expectations.

Dowgate Chairman Tony Rawlinson said: "DCA's performance has been good and
DCS's satisfactory given the challenging market conditions. Net current assets
are around �1.8m of which around �1.6m is in cash. This compares with our
market capitalisation of �1.97m. Overall Group performance has been marred by
exceptional costs, but with these costs now behind us, the Board hopes for a
period of stability and to focus on business development and servicing its
clients' needs moving forward. "

                                 * * ENDS * *                                  


For further information please visit www.dowgatecapital.co.uk or contact:

Tony Rawlinson, Chairman     Dowgate Capital plc        Tel: 020 7492 4777     
                                                                               
Neil Badger, Director        Dowgate Capital plc        Tel: 01293 517744      
                                                                               
Philip Secrett / Colin       Grant Thornton UK LLP      Tel: 020 7383 5100     
Aaronson                                                                       
                                                                               
Hugo de Salis/Victoria       St Brides Media & Finance  Tel: 020 7236 1177     
Thomas                                                                         

Notes to Editors:

Dowgate Capital Plc is an AIM listed corporate finance and stockbroking group
formed to build a range of financial services businesses focussed exclusively
on the small cap arena. It has two operating subsidiaries: Dowgate Capital
Advisors Ltd (`DCA'), a corporate finance adviser, nominated adviser, PLUS
Markets corporate adviser, Official List Sponsor, Takeover Code specialist and
corporate finance adviser to smaller quoted companies; and Dowgate Capital
Stockbrokers Ltd (`DCS'), a private client agency stockbroker that also
specialises in the provision of corporate broking services to smaller quoted
companies.



END

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