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

                                    FORM 10-Q
                                    ---------

  [X]    Quarterly  report under Section 13 or 15(d) of the Securities  Exchange
         Act of 1934 For the quarterly period ended September 30, 1998
                                                    ------------------
                                       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.)


900 East Eighth Avenue, King of Prussia, Pennsylvania             19406
-----------------------------------------------------          ----------
 (Address of Principal Executive Offices)                      (Zip Code)


                                 (610) 768-8070
                ------------------------------------------------
                (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
September 30, 1998 was 13,297,000.

<PAGE>

                           Capita Research Group, Inc.
            Balance Sheets as of December 31, 1997 and Sept 30, 1998
                           (Development Stage Company)

<TABLE>
<CAPTION>
                                     ASSETS
                                                          (UNAUDITED)
                                                            Sept 30,     December 31,     Increase
                 Current Assets                               1998          1997         (Decrease)
                 --------------                               ----          ----         ----------
<S>                                                       <C>            <C>                 <C>   
Cash                                                      $    91,384    $    15,190         76,194
Accounts Receivable                                            25,000          2,000         23,000
Prepaid Expenses                                                3,984           --            3,984
                                                          -----------    -----------    -----------

                             Total Current Assets             120,368         17,190        103,178

                    Equipment
                    ---------
Equipment - Net                                                96,971         85,083         11,888
                                                          -----------    -----------    -----------

                  Other Assets
                  ------------
Notes Receivable                                               10,535         19,638         (9,103)
Deposits                                                        7,160          4,928          2,232
                                                          -----------    -----------    -----------

                               Total Other Assets              17,694         24,566         (6,872)

Total Assets                                              $   235,034    $   126,839        108,195
                                                          ===========    ===========    ===========

                    LIABILITIES and STOCKHOLDERS' DEFICIENCY

               Current Liabilities
               -------------------
Accounts payable and Accrued Expenses                     $   168,550    $   161,008          7,542
Notes payable                                                    --           60,000        (60,000)
Due to stockholders                                           100,000        225,791       (125,791)
                                                          -----------    -----------    -----------

                        Total Current Liabilities             268,550        446,799       (178,249)

            Stockholders' Deficiency
            ------------------------
Common Stock, NextGen Systems, Inc. 
$1.00 par value, 3,000,000 shares authorized;
issued & outstanding, 337,435 in 1997                            --          337,435       (337,435)

Common Stock, Media Solutions International, Inc. 
$.01 par value, 10,000,000 shares authorized;
issued & outstanding, 1,260,100 in 1997                          --           12,601        (12,601)

Common Stock, Capita Research Group, Inc. 
$0.001 par value, 100,000,000 shares authorized;
issued & outstanding, 13,297,000 at Sept 30, 1998              13,297           --           13,297


Additional paid-in capital                                  2,114,880        532,533      1,582,347

Deficit accumulated during
development stage                                          (2,161,693)    (1,202,529)      (959,164)
                                                          -----------    -----------    -----------

                   Total stockholders' deficiency             (33,516)      (319,960)       286,444

Total Liabilities & Stockholders Deficiency               $   235,034    $   126,839        108,195
                                                          ===========    ===========    ===========
</TABLE>


                             See Accompanying notes

<PAGE>

                           Capita Research Group, Inc.
               Statements of Operations for the Nine Months Ended
                             Sept 30, 1997 and 1998
                           (Development Stage Company)

<TABLE>
<CAPTION>
                                                                         (UNAUDITED)
                                                                      Nine Months Ended
                                                                           Sept 30
                                                                    1998             1997
                                                                    ----             ----

<S>                                                             <C>             <C>         
 Revenue                                                        $     85,500    $     86,804


 Cost of Sales                                                        88,202         109,904
                                                                ------------    ------------

                                                 Gross Margin         (2,702)        (23,100)

 Selling, Technical, General & Admin
 Selling Cost                                                         37,400          47,921
 Technical Cost                                                      151,045          60,375
 Administrative Compensation                                         370,673         114,988
 Other General & Administrative                                      388,490         295,930
                                                                ------------    ------------

                        Total S.G.&A                                 947,608         519,214

Other Income (Expense)
Interest expense                                                      (8,854)        (14,589)

 Loss Before Interest and Taxes                                 $   (959,164)   $   (556,903)

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

 Net Loss                                                       $   (959,164)   $   (556,903)
                                                                ============    ============

 Net Loss Per Share, Basic and Diluted                                 (0.09)          (0.31)

 Weighted Average Shares Outstanding                              10,675,763       1,782,938
</TABLE>


                             See Accompanying notes

<PAGE>

                           Capita Research Group, Inc.
               Statements of Operations for the Three Months Ended
                             Sept 30, 1997 and 1998
                           (Development Stage Company)

<TABLE>
<CAPTION>
                                                                         (UNAUDITED)
                                                                      Three Months Ended
                                                                           Sept 30
                                                                     1998           1997
                                                                     ----           ----
<S>                                                             <C>             <C>       
 Revenue                                                        $     47,500    $       --


 Cost of Sales                                                        41,988            --
                                                                ------------    ------------

                                                 Gross Margin          5,512            --

 Selling, Technical, General & Admin
 Selling Cost                                                          9,898            --
 Technical Cost                                                        9,787          11,500
 Administrative Compensation                                          42,747          31,050
 Other General & Administrative                                      127,328          64,580
                                                                ------------    ------------

                        Total S.G.&A                                 189,760         107,130

Other Income (Expense)
Interest expense                                                      (2,654)        (13,296)
                                                                ------------    ------------

 Loss Before Interest and Taxes                                     (186,902)       (120,426)

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

 Net Loss                                                       $   (186,902)       (120,426)
                                                                ============    ============

 Net Loss Per Share, Basic and Diluted                                 (0.01)          (0.08)

 Weighted Average Shares Outstanding                              12,717,610       1,464,157
</TABLE>


                             See Accompanying notes

<PAGE>

                           Capita Research Group, Inc.
               Statements of Cash Flows for the Nine Months Ended
                           (Development Stage Company)

<TABLE>
<CAPTION>
                                                                  (UNAUDITED)
                                                               Nine Months Ended
                                                                  September 30
                                                               1998         1997
                                                               ----         ----
Operating Activities
<S>                                                         <C>          <C>       
Net Loss                                                    $(959,164)   $(556,942)
Adjustments to reconcile net loss to
net cash used in operating activities:
                  Common stock issued for salaries and
                     consulting                               377,708         --
                  Depreciation                                 17,105       12,982

Changes in Operating assets and liabilities:
                 (Increase) decrease in:
                  Accounts receivable                         (23,000)     (44,848)
                  Other assets                                  6,872       (4,936)
                  PrePaid Expenses                             (3,984)        --
                   Accounts payable & Accrued Expenses          7,542      235,544
                                                            ---------    ---------

            Net cash used in operating activities            (576,921)    (358,200)


Investing Activities

Purchase of equipment                                         (28,993)     (15,076)
                                                            ---------    ---------
            Net cash used in investing activities             (28,993)     (15,076)


Financing Activities

Proceeds from issuance of common stock                        691,075      350,500
Proceeds (Repayment) from other loans                            --         (8,300)
Proceeds (Repayment) of Stockholder loans                      (8,966)      33,226
                                                            ---------    ---------
            Net cash provided by financing activities         682,109      375,426


Net Increase ( Decrease) in cash                               76,195        2,150

Cash, Beginning                                                15,190          639
                                                            ---------    ---------

Cash, Ending                                                $  91,385    $   2,789
                                                            =========    =========
</TABLE>


Supplemental Disclosure of Noncash Financing Activities :

Note Payable converted into common stock                    $  60,000
Stockholder loans converted into common stock               $ 116,825

<PAGE>

                    Note to Consolidated Financial Statements




         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.

         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  Form  10-SB/A for the year
ended December 31, 1997.

         Results of operations  for the  nine-month  period ended  September 30,
1998, are not necessarily  indicative of the results to be expected for the full
year.

<PAGE>

                           Capita Research Group, Inc.

     MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
                                  OF OPERATIONS

Results of Operations for the Nine Months Ended September 30, 1998 and 1997

As disclosed in Form 10-SB/A filed in July 1998,  Media Solutions  International
(MSII) (a  predecessor  of Capita  Research)  licensed  the  rights  from  Media
Solutions (a predecessor  of Capita  Research) to continue the  development  and
selling of MediaLink. MediaLink is a software system used by marketers to manage
Direct Response Television, "DRTV", advertising campaigns. During the first nine
months of 1997, MSII was actively engaged in marketing its product and providing
technical support to its clients. As also disclosed in the Form 10-SB/A,  during
the first nine 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  ongoing
technical development, creation of corporate infrastructure, and initiation of a
sale  solicitation  program  among  prospective  media and  advertising  company
prospects.  Currently,  the company is devoting substantially all its efforts in
establishing  the advertising and media copy testing business and cannot predict
when these planned principal operations will commence.

For these  reasons,  substantially  all of the  material  changes from period to
period in the  respective  Consolidated  Statements of  Operations  for the nine
months ended September 30, 1998,  reflect a basic change of business  operations
and not a change in comparable  operating  results.  Accordingly,  in the period
ended September 30, 1997 Media  Solutions and MSII generated  revenue of $86,804
from sales of its MediaLink  software  product.  Total expenses of $643,707 were
incurred largely in connection with system sales and support activities.  In the
nine-month  period ended September 30, 1998 Capita Research Group, Inc. "Capita"
had sales of $ 85,500 of its copy testing service.  This accounts for the entire
period-to-period  change in revenue.  The gross margin for the nine months ended
September 30, 1998 was a negative $2,706 (3% negative),  however, as our testing
process has improved the gross margin for the three months ended  September  30,
1998 was a positive  $5,512 (12 % positive).  Further  gains in gross margin are
expected with anticipated  sales increases and further technical and operational
improvements to the testing process. Capita's expenses of $1,038,679 reflect the
technical development of the product, development of an infrastructure,  and the
start-up of testing  operations.  General and  administrative  expenses  include
costs of  approximately  $104,490  expense  which  are  attributable  to  legal,
accounting,  and other  costs  related  to the  reverse  acquisition  into Royal
American and the filing of the Form 10-SB/A with the SEC.

Liquidity and Capital Resources at September 30, 1998

With  losses  expected  to continue in the  foreseeable  future,  the  Company's
ability  to sustain  operations  is  dependent  on its  ability  to raise  added
investment  capital.  During the nine months period ended September 30, 1998 the
company received cash proceeds of $691,075 from the sale of its common stock. In
consideration  of technical and management  services,  the Company issued common
stock  of  $337,708  and  issued  $176,825  of  common  stock  in  exchange  for
shareholder  loans.  At  September  30, 1998 the  financial  condition  remained
impaired  with the  working  capital  shortfall  being  met  primarily  from the
proceeds of the  issuance of common  stock.  The above  transactions  net of the
operating  loss had the effect of reducing the total  stockholder  deficiency by
$286,444 to a deficit of $33,516 at September 30, 1998.

<PAGE>

SIGNATURES


      Pursuant to the  requirements 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.

                                                     CAPITA RESEARCH GROUP, INC.
                                                     Registrant



Dated: November 12, 1998                             /s/ David B. Hunter
------------------------                             -------------------
                                                     David B. Hunter
                                                     President and
                                                     Chief Executive Officer