UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                             ----------------------

                                   FORM 10-QSB
                                   -----------

  [X]    Quarterly  report under Section 13 or 15(d) of the Securities  Exchange
         Act of 1934 For the quarterly period ended   March 31, 1999
                                                    ------------------
                                       or

  [ ]    Transition report under Section 13 or 15(d) of the Securities  Exchange
         Act of 1934 For the transition period from to

Commission file number: 1-14025
                       ---------

                           Capita Research Group, Inc.
             ------------------------------------------------------
             (exact name of registrant as specified in its charter)

              Nevada                                        88-0072350
   -------------------------------                     -------------------
   (State or Other Jurisdiction of                      (I.R.S. Employer
   Incorporation or Organization)                       Identification No.)

591 Skippack Pike, Suite 300, Blue Bell, Pennsylvania            19422
------------------------------------------------------         ----------
      (Address of Principal Executive Offices)                 (Zip Code)

                                 (215) 619-7777
                ------------------------------------------------
                (Issuer's Telephone Number, Including Area Code)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by  Sections  13 and 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
                                       ---------       ---------

The  number  of  shares  outstanding  of the  registrant's  common  stock  as of
March 31, 1999 was 14,371,000.


<PAGE>

                   Capita Research Group, Inc. and Subsidiary
           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                            AND RESULTS OF OPERATIONS
                 Three month periods end March 31, 1999 and 1998

Forward - Looking Statements

         This report contains forward-looking  statements (within the meaning of
Section 21E of the  Securities  Exchange Act of 1934, as amended),  representing
the Company's current  expectations and beliefs  concerning future events.  When
used in this report,  the words  "believes,"  "estimates,"  "plans,"  "expects,"
"intends,"  "anticipates," and similar expressions as they relate to the Company
or its  management  are  intended to identify  forward-looking  statements.  The
actual results of the Company could differ  materially  from those  indicated by
the  forward-looking  statements  because  of  various  risks and  uncertainties
related to and including,  without  limitation,  the Company's ability to obtain
sufficient financing, market acceptance of the Company's technology, competition
from well-established and well-funded competitors, the recruitment and retention
of qualified  personnel,  the  achievement  by the Company and its suppliers and
customers of year 2000 compliance in a timely and cost efficient manner, general
economic conditions, changes in governmental rules and regulations applicable to
the Company, and other risks set forth in this report and in the Company's other
filings  with  the   Securities  and  Exchange   Commission.   These  risks  and
uncertainties  are beyond the ability of the Company to control,  in many cases,
and the  Company  cannot  predict the risks and  uncertainties  that could cause
actual results to differ materially from those indicated by the  forward-looking
statements.

Results of Operations for the Three Months Ended March 31, 1999 and 1998

During the first three months of 1998, having previously sold the MediaLink line
of business,  and having obtained the rights to commercialize the NASA software,
Media  Solutions was engaged in developing  and launching a new line of business
directed towards  advertising and media copy testing.  In addition to validating
its testing  system for  commercial  use,  this involved  substantial  technical
development,  creation of corporate  infrastructure,  and  initiation of a sales
solicitation program among prospective media and advertising company prospects.

Results of Operations for the quarters  ended March 31, were as follows.  In the
three month period  ended March 31, 1998,  Capita did not complete a sale of its
copy  testing  service.  Similarly,  Capita's  expenses of $519,996  reflect its
start-up of testing  operations  along with legal,  accounting,  and other costs
related to the reverse  acquisition  into Royal  American and the filing of form
10-SB with the SEC. In the three month period  ended March 31, 1999,  Capita was
actively  involved in further  technical  development and testing of its system.
Revenue for the quarter was $4,750.  Total expenses of $202,019  reflect ongoing
development  of the  product and legal,  accounting  and other  expenses,  which
include investor and public  relations costs.  Expenses of $202,019 in 1999 were
$317,577 less than 1998,  which were $519,596.  In 1998 the expenses were higher
due to the expenses of registering  with the SEC and the Company  issuing common
stock to employees and service providers for services.

Liquidity and Capital Resources at March 31, 1999

With start-up  losses  expected to continue,  the  Company's  ability to sustain
operations is dependent on its ability to raise added investment capital. During
the three months ended March 31, 1999,  the Company  received cash proceeds of $

<PAGE>

98,000 from the sale of common  stock.  In addition,  the Company  issued common
stock for services in the amount of $102,000.  These transactions  combined with
operating losses had the effect of increasing the stockholder deficit by $19,543
to a deficit of  $188,000  at March 31,  1999,  versus a deficit of  $168,000 at
December 31, 1998.

Revenue

The  Company  has  been  developing  its  professional   research  staffing  and
infrastructure to support  large-scale  sales volume.  While the Company has had
media  research staff  available,  it was determined in the last quarter of 1998
that a  substantial  upgrade of its research  staff was  necessary,  in order to
properly  position the  Company's  advanced  technology  in the media  industry.
Starting in September 1998, the Company  embarked on a program of recruiting the
most technologically  advanced  researchers.  This culminated in the hiring of a
new research  director  during the last week of February 1999.  Simultaneous  to
that event, the Company  interviewed,  and subsequently  retained,  three of the
leading  experts  in  media  research,  television  copy-testing,  and  internet
research,   to  structure  the   Company's   product   offerings,   pricing  and
deliverables,  as well as to determine the optimal  methodology  for integrating
Engagement IndexSM measurement with traditional research deliverables.

At this time, such staffing is available and has developed  sufficient  know-how
for  expanded  marketing  efforts  to  commence.  The  Company is  currently  in
discussions with a number of major television networks,  multi-brand  companies,
as well as other research companies on research projects employing the Company's
Engagement  Testing  System(TM).  The  Company  expects to record an  incidental
amount of  revenues  from these  activities  during the second  quarter,  but an
amount  exceeding that of the first quarter.  During the third quarter 1999, the
Company expects a further increase in revenues, but that amount is not presently
determinable.  At present,  the Company is either planning  projects  ordered or
bidding on a number of media  research  and  copy-testing  projects  for various
clients  and  prospects.  It is not known  what  revenues  may  ensue  from such
activities.

Gross Margin

The  Company  realized a gross loss  during the quarter due to a lack of testing
activity,  and due to the fact  that  overhead  allocation  is not  being  fully
absorbed.  The  Company  expects  that it can  realize a gross  margin  upon the
performance  of  significant  revenues,  due to that fact that the production of
research  services has an inherent  gross margin on a variable cost basis.  Once
the Company can reach a benchmark  of sales,  overhead  allocation  can be fully
absorbed, producing a positive gross margin overall.

<PAGE>

<TABLE>
                   Capita Research Group, Inc. and Subsidiary
             Balance Sheets as of December 31, 1998 and Mar 31, 1999
                           (Development Stage Company)

                                     ASSETS
<CAPTION>

                                                                    March 31,        December 31,
                     Current Assets                                   1999              1998
                     --------------                                -----------      -----------
<S>                                                                <C>              <C>        
Cash                                                               $       434      $    19,301
Accounts Receivable                                                      7,390            1,000
Prepaid Expenses                                                        35,680            9,508
                                                                   -----------      -----------

                                     Total Current Assets               43,504           29,809
                                                                   -----------      -----------

                        Equipment
                        ---------
Equipment - Net                                                        117,725           92,511
                                                                   -----------      -----------

                      Other Assets
                      ------------
Notes Receivable                                                        15,035           15,534
Deposits                                                                  --              3,560
                                                                   -----------      -----------

                                       Total Other Assets               15,035           19,094
                                                                   -----------      -----------

Total Assets                                                       $   176,264      $   141,414
                                                                   ===========      ===========

                    LIABILITIES and STOCKHOLDERS' DEFICIENCY

                   Current Liabilities
                   -------------------
Accounts payable, Accrued Expenses & A/P Lease                     $   244,015      $   186,052
Current portion of obligations (capital leases)                         14,281           14,281
Due to stockholders                                                    100,000          100,000
                                                                   -----------      -----------

                                Total Current Liabilities              358,296          300,333
                                                                   -----------      -----------

Long-term obligations under capital leases,                              6,044            9,614
    net of current portion                                         -----------      -----------

                Stockholders' Deficiency
                ------------------------

Common Stock, Capita Research Group, Inc. 
$0.001 par value, 100,000,000 shares authorized;
issued & outstanding, 14,371,000 March 31, 1999,                        14,371           13,563
13,562,900 shares, December 31, 1998

Additional paid-in capital                                           2,380,386        2,181,114

Deficit accumulated during
development stage                                                   (2,582,833)      (2,363,210)
                                                                   -----------      -----------

                           Total stockholders' deficiency             (188,076)        (168,533)
                                                                   -----------      -----------

Total Liabilities & Stockholders Deficiency                        $   176,264      $   141,414
                                                                   ===========      ===========
</TABLE>


                             See Accompanying notes

<PAGE>

<TABLE>
                   Capita Research Group, Inc. and Subsidiary
               Statements of Operations for the Three Months Ended
                             March 31, 1999 and 1998
                           (Development Stage Company)
<CAPTION>

                                                                         Three Months Ended
                                                                               Mar 31
                                                                       1999              1998
                                                                   ------------      ------------
<S>                                                                <C>               <C>       
 Revenue                                                           $      4,750      $       --

 Cost of Sales                                                           18,300             6,291
                                                                   ------------      ------------

                                           Gross profit (loss)          (13,550)           (6,291)
                                                                   ------------      ------------

 Operating expenses
 Selling Cost                                                             9,691             5,304
 Technical Cost                                                          19,903             7,221
 Administrative Compensation                                             55,266            63,020
 Other General and Administrative                                       117,159           444,051
                                                                   ------------      ------------

                   Total operating expenses                             202,019           519,596
                                                                   ------------      ------------

Other Income (Expense)
Interest expense                                                         (4,054)           (3,571)
                                                                   ------------      ------------

 Loss Before Interest and Taxes                                        (219,623)         (529,458)

 Provision for Income Taxes                                                --                --
                                                                   ------------      ------------

 Net Loss                                                          $   (219,623)     $   (529,458)
                                                                   ============      ============ 

 Net Loss Per Share, Basic and Diluted                             $      (0.02)     $      (0.07)
                                                                   ============      ============ 

 Weighted Average Shares Outstanding                                 13,926,615         7,368,974
                                                                   ============      ============ 
</TABLE>


                             See Accompanying notes

<PAGE>

<TABLE>
                   Capita Research Group, Inc. and Subsidiary
               Statements of Cash Flows for the Three Months Ended
                           (Development Stage Company)
<CAPTION>

                                                                 Three Months Ended
                                                                      Mar 31
                                                                1999           1998
                                                             ---------      ---------
<S>                                                          <C>            <C>       
Operating Activities

Net Loss                                                     $(219,623)     $(529,458)
Adjustments to reconcile net loss to
net cash used in operating activities:
                  Common stock issued for salaries, rent
                     consulting and fixed assets               102,011         75,675
                  Depreciation                                  14,550          8,400
                  Writeoff of organization cost                   --           19,637

Changes in Operating assets and liabilities:
          (Increase) decrease in:
                  Accounts receivable                           (6,390)         2,000
                  Other assets                                   4,059          1,328
                  PrePaid Expenses                             (26,172)          --
                  Accounts payable and Accrued Expenses         57,963        (28,592)
                                                             ---------      ---------

            Net cash used in operating activities              (73,601)      (451,010)
                                                             ---------      ---------

Investing Activities

Purchase of equipment                                          (39,764)        (9,509)
                                                             ---------      ---------
            Net cash used in investing activities              (39,764)        (9,509)

Financing Activities

Proceeds from issuance of common stock                          98,068        455,885
Repayment of capital lease obligations                          (3,570)          --
Repayment of loans                                                --           (6,000)
            Net cash provided by financing activities           94,498        449,885
                                                             ---------      ---------

Net Increase ( Decrease) in cash                               (18,867)       (10,634)

Cash, Beginning                                                 19,301         15,190
                                                             ---------      ---------

Cash, Ending                                                 $     434      $   4,556
                                                             =========      =========



Supplemental Disclosure of Noncash Financing Activities 1998:

   Note Payable converted into common stock                                  $ 60,000
   Stockholder loans converted into common stock                            $ 116,825
</TABLE>


                             See Accompanying notes

<PAGE>

                   Capita Research Group, Inc. and Subsidiary
                         ( a development stage company )
                    Note to Consolidated Financial Statements
                 Three month periods end March 31, 1999 and 1998


1. The accompanying  consolidated financial statements of Capita Research Group,
Inc. and its subsidiary  reflect all adjustments and disclosures,  which are, in
the opinion of management, necessary for a fair presentation of interim results.
The  financial  information  has  been  prepared  in  accordance  with  Capita's
customary accounting practices and has not been audited.

2. Certain  information  and  footnote  disclosures   required  under  generally
accepted  accounting  principles have been condensed or omitted  pursuant to the
Securities and Exchange Commission (SEC) rules and regulations.  The preparation
of  financial  statements  in  conformity  with  generally  accepted  accounting
principles  requires  management to make certain  estimates and assumptions that
affect the amount reported in the financial  statements and accompanying  notes.
Actual  results  could  differ from those  estimates.  These  interim  financial
statements  should  be read in  conjunction  with  Management's  Discussion  and
Analysis of Financial  Condition  and Results of  Operations  and the  financial
statements and notes thereto  included in Capita's Annual Report Form 10 KSB for
the year ended December 31, 1998.

3. Results of operations  for the  three-month  period ended March 31, 1999, are
not necessarily indicative of the results to be expected for the full year.

4. On March 10, 1999, the Company  entered into an agreement with Quaker Capital
Markets Group,  Inc.  ("Quaker"),  to render advisory services to the Company in
its  attempt  to  raise  up to  $5,000,000  in  equity  capital.  In  connection
therewith,  the Company agreed to pay Quaker $10,000 in cash,  $15,000 in common
stock and a percentage of equity capital raised.

<PAGE>

                                   SIGNATURES

     Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,
theRegistrant  has duly  caused  this  report  to be  signed  on its  behalf  by
theundersigned thereunto duly authorized.

                                                   CAPITA RESEARCH GROUP, INC.
                                                   Registrant

Dated:   May 13, 1999                              /s/ David B. Hunter
------------------------                           -----------------------------
                                                   David B. Hunter President and
                                                   Chief Executive Officer