FORM 10-Q


                   SECURITIES AND EXCHANGE COMMISSION
                         Washington, D.C.  20549


(Mark One)

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

           For the quarterly period ended       June 30, 2000
                                          -----------------------

                                   OR
[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

    For the transition period from _______________ to _______________


                     Commission File Number 0-13817


                        MARGATE INDUSTRIES, INC.
         ------------------------------------------------------
         (Exact name of registrant as specified in its charter)


        Delaware                                 84-8963939
----------------------------         ------------------------------------
(State or other jurisdiction         (I.R.S. Employer Identification No.)
of incorporation or organization)


129 N. Main Street      Yale, Michigan                           48097
----------------------------------------                       ----------
(Address of principal executive offices)                       (Zip Code)

   (Registrant's telephone number, including area code) (810) 387-4300
                                                        --------------

Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
                                                      Yes   X    No
                                                          -----     -----

As of June 30, 2000, the Company had 1,596,542 shares of its $.015 Par
Value Common Stock outstanding.


<PAGE>
                        MARGATE INDUSTRIES, INC.

                                FORM 10-Q


                                  INDEX
                                  -----


PART I:   FINANCIAL STATEMENTS                                    PAGE(S)
-------   --------------------                                    -------


Item 1.   Financial Information


          Consolidated Balance Sheets. . . . . . . . . . . . . . . . .3-4


          Consolidated Income Statement. . . . . . . . . . . . . . . . .5


          Consolidated Statements of Changes in
            Stockholders' Equity . . . . . . . . . . . . . . . . . . . .6


          Consolidated Statements of Cash Flows. . . . . . . . . . . . .7


          Notes to Consolidated Financial
            Statements . . . . . . . . . . . . . . . . . . . . . . 8 - 10


Item 2.   Management's Discussion and Analysis of Financial
            Condition and Results of Operations. . . . . . . . . . . . 11


PART II:  Other Information. . . . . . . . . . . . . . . . . . . . . . 12
--------  -----------------



                                   -2-
<PAGE>
                MARGATE INDUSTRIES, INC. AND SUBSIDIARIES
                       CONSOLIDATED BALANCE SHEETS


<TABLE>
<CAPTION>
                                                                 June 30, 2000  Dec. 31, 1999
                                                                 -----------------------------
ASSETS                                                           (Unaudited)
------                                                           ------------

<S>                                                              <C>              <C>
CURRENT ASSETS

     Cash and cash equivalents                                   $  1,976,554     $  1,620,120

     Accounts receivable                                            1,653,006        1,210,337

     Current maturities of notes receivable                           536,136          428,305

     Inventories                                                       32,000           42,000

     Prepaid expenses and other                                        24,786           79,119

     Prepaid Federal income tax                                             -                -

     Deferred tax asset                                                 6,800            6,800
                                                                 ------------     ------------

          Total Current Assets                                      4,229,282        3,386,681

PROPERTY, PLANT AND EQUIPMENT

     Property, Plant and Equipment, at cost:                        5,808,879        5,733,217
     Less: Accumulated Depreciation                                 2,176,098        1,998,414
                                                                 ------------     ------------
                                                                    3,632,781        3,734,803

NOTES RECEIVABLE - net of current maturities                          513,488          739,552

OTHER                                                                  34,833           34,833

          Total Assets                                           $  8,410,384     $  7,895,869
                                                                 ============     ============
</TABLE>


See Notes to Consolidated Financial Statements.



                                   -3-
<PAGE>
                MARGATE INDUSTRIES, INC. AND SUBSIDIARIES
                 CONSOLIDATED BALANCE SHEETS (Continued)

<TABLE>
<CAPTION>
                                                                 June 30, 2000   Dec. 31, 1999
                                                                 -------------- ---------------
                                                                  (Unaudited)
                                                                 --------------
<S>                                                              <C>              <C>
LIABILITIES & STOCKHOLDER'S EQUITY
----------------------------------

CURRENT LIABILITIES

     Line-of-credit                                              $          -     $    217,000
     Current portion of long-term debt                                 50,035           57,618
     Accounts payable                                                 275,441          299,709
     Accrued salaries and wages                                       260,124           91,042
     Accrued federal income tax                                       164,128          153,000
     Other accrued liabilities                                        245,874           87,217
                                                                 ------------     ------------

          Total Current Liabilities                                   995,602          905,586

DEFERRED TAX LIABILITY                                                259,800          259,800
OTHER POSTRETIREMENT BENEFITS                                         508,282          493,282
NOTES PAYABLE - Long-term                                             103,508          133,981


STOCKHOLDERS' EQUITY:

     Common stock - $.015 par value
       Authorized - 5,000,000
       Issued and outstanding -
         1,596,542 and 1,597,280
         at June 30,2000 and December 31, 1999 respectively            23,948           23,955

     Paid- in for common stock in excess
       of par value                                                 7,527,383        7,523,252
     Accumulated deficit                                           (1,008,139)      (1,443,987)
                                                                 ------------     ------------

          Total Stockholders' Equity                                6,543,192        6,103,220
                                                                 ------------     ------------

          Total Liabilities and                                  ------------     ------------
            Stockholders' Equity                                 $  8,410,384     $  7,895,869
                                                                 ============     ============
</TABLE>


See Notes to Consolidated Financial Statements



                                   -4-
<PAGE>
                MARGATE INDUSTRIES, INC. AND SUBSIDIARIES
                     CONSOLIDATED INCOME STATEMENTS
                               (unaudited)

<TABLE>
<CAPTION>

                                      Three Months Ended           Six Months Ended
                                           June 30                     June 30
                                      2000          1999          2000          1999

<S>                                <C>           <C>           <C>           <C>
NET SALES                          $3,230,379    $2,566,870    $5,765,468    $5,017,571

COST OF SALES                       2,489,845     2,200,015     4,489,045     4,355,160
                                    ---------     ---------     ---------     ---------

GROSS PROFIT                          740,534       366,855     1,276,423       662,411

SELLING, GENERAL AND
  ADMINISTRATIVE EXPENSES             287,009       217,939       505,204       400,216
                                      -------       -------       -------       -------


INCOME FROM OPERATIONS                453,525       148,916       771,219       262,195

DIVIDEND AND INTEREST INCOME
  (EXPENSE) - NET                      41,284        18,453        75,862        34,476

OTHER INCOME (EXPENSE)               (139,758)       12,501      (158,807)       12,501
                                     --------        ------       -------        ------


INCOME BEFORE PROVISION FOR
  INCOME TAXES                        355,051       179,870       688,274       309,172


PROVISION FOR FEDERAL
  INCOME TAXES                        137,000        63,000       252,000       107,000
                                      -------        ------       -------       -------

NET INCOME                           $218,051      $116,870      $436,274      $202,172
                                      =======       =======       =======       =======


BASIC EARNINGS PER COMMON SHARE        $0.137        $0.078        $0.273        $0.136

WEIGHTED AVERAGE SHARES
  OUTSTANDING                       1,595,042     1,489,214     1,595,243     1,489,214
</TABLE>

See Notes to Consolidated Financial Statements

                                   -5-
<PAGE>

                MARGATE INDUSTRIES, INC. AND SUBSIDIARIES
       CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
       ----------------------------------------------------------
                               (unaudited)

<TABLE>
<CAPTION>
                                       SIX MONTHS ENDED JUNE 30, 2000
                                COMMON STOCK        PAID IN FOR
                              ----------------      COMMON STOCK
                            NUMBER OF               IN EXCESS OF    ACCUMULATED   STOCKHOLDERS'
                             SHARES       AMOUNT      PAR VALUE       DEFICIT        EQUITY
                            --------     --------    -----------     ---------      --------
<S>                         <C>         <C>          <C>            <C>           <C>
Balance - January 1, 2000   1,597,280   $   23,955   $7,523,252     $(1,443,987)  $6,103,220

Stock Dividend                    262            4          422            (426)           0

Stock Issued                    9,000          139       24,563                       24,702

Stock Reacquired              (10,000)        (150)     (20,854)                     (21,004)

Net income                         --           --           --         436,274      436,274
                           ----------   ----------   ----------      ----------   ----------

Balance - June 30, 2000     1,596,542   $   23,948   $7,527,383     $(1,008,139)  $6,543,192
                           ==========   ==========   ==========      ==========   ==========
</TABLE>


<TABLE>
<CAPTION>

                                       SIX MONTHS ENDED JUNE 30, 1999
                                COMMON STOCK       PAID IN FOR
                              ----------------     COMMON STOCK
                            NUMBER OF              IN EXCESS OF   ACCUMULATED    STOCKHOLDERS'
                             SHARES      AMOUNT      PAR VALUE      DEFICIT         EQUITY
                            --------    --------    -----------    ---------      --------
<S>                         <C>         <C>          <C>           <C>            <C>
Balance - January 1, 1999   1,489,214   $   22,338   $7,345,038    $(1,651,010)   $5,718,366

Net income                         --           --           --        202,172       202,172
                           ----------   ----------   ----------     ----------    ----------

Balance - June 30, 1999     1,489,214   $   22,338   $7,345,038    $(1,448,838)   $5,918,538
                           ==========   ==========   ==========     ==========    ==========
</TABLE>



                                   -6-
<PAGE>
                MARGATE INDUSTRIES, INC. AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF CASH FLOWS
                               (unaudited)

<TABLE>
<CAPTION>
                                                                       Six Months Ended
                                                                           June 30,
                                                                    2000             1999
                                                                 -----------------------------
<S>                                                              <C>              <C>
INCREASE IN CASH AND CASH EQUIVALENTS

OPERATING ACTIVITIES                                             $    576,207     $    607,408

INVESTING ACTIVITIES:

     Purchase of plant and equipment                                  (94,448)        (112,778)
     Proceeds from sale of equipment                                    7,800                -
     Collections from notes receivable                                118,233           53,333
                                                                 ------------     ------------
Net cash provided (used) in investing activities                       31,585          (59,445)

FINANCING ACTIVITIES:

     Repayments - line of credit (net)                               (217,000)        (393,784)
     Proceeds from issuance of common stock                            24,702                -
     Repurchase of common stock                                       (21,004)               -
     Principal payments under long-term obligations                   (38,056)         (33,776)
                                                                 ------------     ------------

Net cash used in financing activities                                (251,358)        (427,560)

NET INCREASE IN CASH AND CASH EQUIVALENTS                             356,434          120,403


CASH AND CASH EQUIVALENTS - Beginning                               1,620,120        1,504,725
                                                                 ------------     ------------

CASH AND CASH EQUIVALENTS - Ending                               $  1,976,554     $  1,625,128
                                                                 ============     ============
</TABLE>


See Notes to Consolidated Financial Statements



                                   -7-
<PAGE>
                MARGATE INDUSTRIES, INC. AND SUBSIDIARIES
               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 -  SIGNIFICANT ACCOUNTING POLICIES
          The consolidated Balance Sheet as of June 30, 2000 and the
          related Consolidated Statements of Income, Changes in
          Stockholders' Equity, and Cash Flows for the six months ended
          June 30, 2000 and 1999 are unaudited.  In the opinion of
          management, all adjustments (consisting of solely recurring
          adjustments and the adjustment described in Note 6 which follows)
          necessary for a fair presentation of such interim financial
          statements have been included.  The results of operations for the
          six months ended June 30, 2000 and 1999 are not necessarily
          indicative of the results to be expected for the whole year.

          The notes to the financial statements are presented as permitted
          by Form 10-Q and do not contain certain information included in
          the Company's annual financial statements.

NOTE 2 -  DIVIDENDS
          On July 11, 2000, the Company announced a special cash dividend
          of $0.50 per share on all outstanding shares of common stock for
          those shareholders of record on July 24, 2000.  The dividend will
          be paid on August 25, 2000.

NOTE 3 -  STATEMENTS OF CASH FLOWS
          A reconciliation of net income to net cash flows provided by
          operating activities is as follows:
<TABLE>
<CAPTION>
                                                                  Six Months Ended
                                                                      June 30,
                                                                    (Unaudited)
                                                              2000                1999
                                                              ----                ----
          <S>                                              <C>                 <C>
          Net income                                       $  436,274          $  202,172
          Adjustments to reconcile net income to
            net cash from operating activities:
                      Depreciation and amortization           193,290             182,100
                      Gain On Sale Of Assets                   (4,620)                  -
                      Changes in assets and liabilities:
                        Accounts receivable                  (442,669)            (15,679)
                        Inventories                            10,000             (64,900)
                        Prepaid expenses                       54,333             (16,305)
                        Prepaid Federal tax                         -              21,700
                        Accounts payable                      (24,268)            180,354
                        Accrued salaries and wages            169,082              20,976
                        Accrued Federal Income Tax             11,128              85,307
                        Other postretirement benefits          15,000                   -
                        Other liabilities                     158,657              11,683
                                                           ----------          ----------

                              Net cash provided (used) by
                               operating activities        $  576,207          $  607,408
</TABLE>

                                   -8-
<PAGE>
NOTE 4 -  NOTES PAYABLE
          Notes payable consist of the following at June 30, 2000:


          Note payable Ft. Atkinson, due in monthly
          installments of $3,992, including interest
          at 4% through July 2003                                 145,704


          Capital lease - Ft. Atkinson - due in monthly
          installments of $705, including interest at
          17.9% through July 2001.                                  7,839


          Less current portion                                     50,035
                                                             ------------
                                                             $    103,508


          Maturities of notes payable obligations are as follows:


          Year ending June 30:

               2001                                                50,035
               2002                                                45,260
               2003                                                46,419
               2004                                                11,829
                                                             ------------

                                                             $    153,543
                                                             ============

          The Company maintains a bank line-of credit of $1,300,000 for
          working capital requirements. The applicable interest rate is at
          1/2% below the prime lending rate, currently 8.5% at June 30,
          2000. The line-of-credit is secured by all accounts receivable,
          inventories and equipment of the Company.  The Company has no
          borrowings against the line as of June 30, 2000.



                                   -9-
<PAGE>
NOTE 5 -  NOTES RECEIVABLE

          Notes receivable consist of the following at June 30, 2000:

          Wesley Industries Inc.- collateralized note
          receivable due in quarterly payments of $35,000
          commencing June 1, 1998 including imputed interest
          at 6% with a final payment of the remaining
          outstanding principal and imputed interest balance
          on March 1, 2003                                   $    382,857


          NHF - unsecured note receivable, due in monthly
          installments of $32,250 including interest at 8%
          through February 2002.                             $    566,767

          NHF - unsecured note receivable, due in one
          payment including interest on July 25, 2000.       $    100,000
                                                             ------------
                                                             $  1,049,624

          Less current portion                               $    536,136
                                                             ------------

                                                             $    513,488
                                                             ============


NOTE 6 -  OTHER INCOME (EXPENSE)

          The Company has expensed $200,000 on merger and acquisition costs
          for the expected merger with B2B Euro Wireless.com.  The
          agreement is subject to shareholder approval and an effective
          registration statement on Form S-4 relating to the transaction.
          Additional information is contained in Part 2 Item 5 under other
          information of this filing.



                                  -10-
<PAGE>
ITEM 2.
-------
     MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
     ---------------------------------------------------------------
                          RESULTS OF OPERATIONS
                          ---------------------

     The following is management's discussion and analysis of certain
significant factors which have affected the Company's financial condition
and results of operation during the periods included in the accompanying
consolidated financial statements for the six (6) months ended June 30, 2000.

FORWARD-LOOKING STATEMENTS MAY NOT PROVE ACCURATE
-------------------------------------------------

          When used in this Form 10-Q, the words "anticipate,"
"estimate," "expect," "project," and similar expressions are intended to
identify forward-looking statements.  Such statements are subject to
certain risks, uncertainties and assumptions including the possibility
that the Company's projected sales, revenues and contract negotiations
are not realized.  Should one or more of these uncertainties materialize,
or should underlying assumptions prove incorrect, actual results may vary
materially from those anticipated, estimated or projected.

LIQUIDITY & CAPITAL RESOURCES
-----------------------------

          The Company has a consolidated line of credit of $1,300,000
with monthly interest payments at 1/2 below the prime rate with the Bank
One.  The line is collateralized by substantially all assets. There were
no borrowings as of June 30, 2000.

RESULTS OF OPERATIONS
---------------------

          The Company is reporting year-to-date pre-tax profit on
operations item of $688,274 for the six months ended June 30, 2000 as
compared to a profit of $309,172 for the same period in 1999. Net sales
for the period ended June 30, 2000 were approximately $5,765,468; which
represents a increase of 14.9% from 1999 sales through June 30, 1999 of
$5,017,571.

          The cost of sales for the six months ended June 30, 2000 as a
percentage of sales was 77.9% as compared to 86.8% for the same period in
1999. Higher sales volume and cost improvements account for this reduction.

          Selling, General & Administrative for the six months ended
June 30, 2000 as a percentage of sales was 8.8% as compared to 8.0% for
the same period in 1999.



                                  -11-
<PAGE>
                                 PART II

Item 1.   Legal Proceedings
          -----------------

               The Company is not engaged in any material pending legal
               proceeding to which the Company is a party or to which any
               of its property is subject.

Item 2.   Changes in Securities
          ---------------------

               None

Item 3.   Defaults Upon Senior Securities
          -------------------------------

               None

Item 4.   Submission of Matters to a Vote of Securities Holders
          -----------------------------------------------------

               As noted in Item 5 below, the Company entered into a
               definitive agreement with B2B Euro Wireless.com, Inc. on
               July 10, 2000.  The transaction is expected to be
               submitted to shareholder vote for approval at the
               Company's Special Meeting to be held sometime in the future.

Item 5.   Other Information
          -----------------

          (a)  On July 10, 2000, Margate Industries, Inc. (the
               "Registrant" or "Margate") entered into an Agreement and
               Plan of Merger (the "Agreement") with B2B Euro
               Wireless.com ("B2B"), a business to business, e-commerce
               company located in New York City.  The Agreement provides
               for Margate to form a new holding company that will in
               turn form two new wholly-owned subsidiaries.  Thereafter,
               Margate will merge into one of the subsidiaries and the
               Margate shareholders will receive one share of holding
               company common stock for each share of common stock of
               Margate then owned.  Similarly, B2B will merge into the
               other subsidiary of the holding company in exchange for
               15.2 million shares of holding company common stock.
               Following the two mergers, Margate shareholders will own
               approximately 10.6% of the holding company's outstanding
               shares and the B2B shareholders will own 89.4% of the
               holding company's outstanding shares. The holding company
               will become the public company upon the close of the
               transaction and Margate will become a private, wholly-owned
               subsidiary of the holding company.

               Following the merger, the holding company's board of
               directors will consist of five (5) members with three (3)
               members from B2B and two (2) from the Company. Margate's
               present board of directors will remain the same, with the
               addition of one director appointed by B2B.  Prior to
               closing, B2B will contribute $8.0 million in cash for
               working capital of holding company subject to a portion of
               the $8.0

                                  -12-
<PAGE>
               million being used for funding costs and expenses related
               to business development.

               The Agreement is subject to shareholder approval and an
               effective registration statement on Form S-4 relating to
               the transaction.  A fairness opinion was obtained from
               Chartered Capital Advisers, Inc. for use by the Board of
               Directors to assist them in evaluating the transaction.
               The transaction is expected to be completed and the
               closing to occur by the first quarter 2001.

               B2B was formed in December 1999 and is owned by
               Incubax.com, a New York City based internet incubator that
               also owns several technology companies.  B2B is working on
               the development of certain applications that utilize
               wireless application protocol technology to deliver e-commerce
               trading to wireless, handheld devices.

               On July 11, 2000, the Margate's Board of Directors
               announced a $0.50 per share cash dividend on all
               outstanding shares of common stock for those shareholders
               of record on July 24, 2000.  The dividend will be payable
               on August 25, 2000.

          (b)  In July 2000, Margate Management and Directors exercised a
               total of 280,000 options at exercise prices ranging from
               $1.625 for total proceeds to the Registrant of $455,000.

Item 6.   Exhibits and Reports on Form 8-K
          --------------------------------

          (a)  The following exhibits required by Item 601 of Regulation
               S-B are filed herewith:

               Exhibit No.    Description
               -----------    -----------

                    27        Financial Data Schedule


          (b)  The Company filed a form 8-K on July 10, 2000 reporting
               the signing of a definitive agreement with B2B and the
               Registrant under Item 2 and the declaration of a cash
               dividend for shareholders of record under Item 5 of the report.



                                  -13-
<PAGE>
                               SIGNATURES
                               ----------


     Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the Registrant has duly caused this
Report to be signed on its behalf by the undersigned thereunto duly authorized.

MARGATE INDUSTRIES, INC.



By: /s/ William H. Hopton
    --------------------------------
        William H. Hopton

Date:     July 31, 2000









                                  -14-