United States
                       Securities and Exchange Commission
                             Washington, D.C. 20549

                                   Form 10-QSB

              [X] Quarterly Report Pursuant to Section 13 or 15(d)
                     of the Securities Exchange Act of 1934

                  For the Quarterly Period Ended June 30, 1998

              [ ] 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 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 office)                (ZIP Code)

Registrant's telephone number, including area code:  (610) 768-8070
                                                     --------------
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 report(s)),  and (2) has been  subject to such filing
requirements for the past 90 days. Yes No X .

The number of shares outstanding of the registrant's common stock as of July 31,
1998 was 12,692,900.


<PAGE>


                           Capita Research Group, Inc.
            Balance Sheets as of December 31, 1997 and June 30, 1998
                           (Development Stage Company)
<TABLE>
<CAPTION>
                                     ASSETS
                                                                    (UNAUDITED)
                                                                      June 30,              December 31,
                                                                      --------              ------------
                    Current Assets                                      1998                    1997
                    --------------                                    --------                --------
<S>                                                                    <C>                    <C>     
Cash                                                                   $ 9,229                $ 15,190
Accounts Receivable                                                     12,027                   2,000
                                                                    -----------             -----------

                                  Total Current Assets                  21,256                  17,190
                      Equipment
                      ---------
Equipment - Net                                                         97,288                  85,083
                                                                    -----------             -----------
                     Other Assets
                     ------------
Organization costs - net                                                     -                  19,638
Deposits                                                                 7,635                   4,928
                                                                    -----------             -----------

                                    Total Other Assets                   7,635                  24,566

Total Assets                                                         $ 126,179               $ 126,839
                                                                    ===========             ===========

                   LIABILITIES and STOCKHOLDERS' DEFICIENCY

                 Current Liabilities
                 -------------------
Accounts payable                                                      $ 28,964                $ 82,576
Accrued expenses                                                       124,552                  78,432
Notes payable                                                                -                  60,000
Due to stockholders                                                    100,000                 225,791
                                                                    -----------             -----------

                             Total Current Liabilities                 253,516                 446,799

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

Common Stock, Capita Research Group, Inc.
$0.001 par value, 100,000,000 shares authorized;
issued & outstanding, 12,174,000 in 1998                                12,174                       -


Additional paid-in capital                                           1,835,280                 532,533

Deficit accumulated during
development stage                                                   (1,974,791)             (1,202,529)
                                                                    -----------             -----------
                        Total stockholders' deficiency                (127,337)               (319,960)

Total Liabilities & Stockholders' Deficiency                         $ 126,179               $ 126,839
                                                                    ===========             ===========
</TABLE>

                             See Accompanying notes


<PAGE>



                           Capita Research Group, Inc.
               Statements of Operations for the Three Months Ended
                             June 30, 1997 and 1998

<TABLE>
<CAPTION>
                                                                      (UNAUDITED)
                                                                   Three Months Ended
                                                                        June 30
                                                               1998                 1997
                                                            -----------          -----------

<S>                                                           <C>                  <C>     
Revenue                                                       $ 38,000             $ 13,991
                                                            -----------          -----------


Expenses
Research and Development                                        30,978                  292
Salaries and consulting fees                                   121,066               58,172
Advertising and promotion                                          200                  122
General and administrative                                     125,930              189,338
                                                            -----------          -----------

                       Total expenses                          278,174              247,924


Other Income (Expense)
Interest expense                                                (2,629)                   -
                                                            -----------          -----------
                     Total other expense                        (2,629)                   -


Net Loss Before Provision for Income Taxes                    (242,803)            (233,933)

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

Net Loss                                                    $ (242,803)          $ (233,933)
                                                            ===========          ===========
Net Loss Per Share, Basic and Diluted                            (0.02)               (0.11)

Weighted Average Shares Outstanding                         11,431,661            1,927,791
                                                            ===========          ===========
</TABLE>

                             See Accompanying notes


<PAGE>


                           Capita Research Group, Inc.
                Statements of Operations for the Six Months Ended
                             June 30, 1997 and 1998


<TABLE>
<CAPTION>
                                                                (UNAUDITED)
                                                              Six Months Ended
                                                                  June 30
                                                         1998                 1997
                                                     -----------          -----------
<S>                                                    <C>                  <C>     
Revenue                                                $ 38,000             $ 86,804
                                                     -----------          -----------


Expenses
Research and Development                                 31,624                6,190
Salaries and consulting fees                            435,987              139,508
Advertising and promotion                                 2,322                2,562
General and administrative                              334,129              373,728
                                                     -----------          -----------

                       Total expenses                   804,062              521,988


Other Income (Expense)
Interest expense                                         (6,200)              (1,293)
                                                     -----------          -----------
                     Total other expense                 (6,200)              (1,293)


Net Loss Before Provision for Income Taxes             (772,262)            (436,477)

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

Net Loss                                             $ (772,262)          $ (436,477)
                                                     ===========          ===========
Net Loss Per Share, Basic and Diluted                     (0.08)               (0.11)

Weighted Average Shares Outstanding                   9,591,332            1,944,525
                                                     ===========          ===========
</TABLE>

                             See Accompanying notes


<PAGE>

                           Capita Research Group, Inc.
                Statements of Cash Flows for the Six Months Ended
                           (Development Stage Company)
<TABLE>
<CAPTION>
                                                                                    (UNAUDITED)
                                                                                  Six Months Ended
                                                                                      June 30
                                                                             1998                1997
                                                                          -----------        -----------
Operating Activities

<S>                                                                       <C>                <C>        
Net Loss                                                                  $ (772,262)        $ (436,477)
Adjustments to reconcile net loss to
net cash used in operating activities:
                  Common stock issued for salaries and                                                -
                     consulting                                              331,170
                  Depreciation                                                10,149             12,982
                  Writeoff of organization costs                              19,638                  -

Changes in Operating assets and liabilities:
                     (Increase) decrease in:
                  Accounts receivable                                        (10,027)           (31,199)
                  Other assets                                                (2,707)            (3,607)
                     Increase (decrease) in:
                   Accounts payable & Accrued Expenses                        (7,491)           327,661
                                                                          -----------        -----------

            Net cash used in operating activities                           (431,530)          (130,640)


Investing Activities

Purchase of equipment                                                        (22,355)            (2,290)
                                                                          -----------        -----------
            Net cash used in investing activities                            (22,355)            (2,290)


Financing Activities

Proceeds from issuance of common stock                                       456,890            214,250
Proceeds from other loans                                                          -             (8,300)
Repayment of Stockholder loans                                                (8,966)           (52,379)
                                                                          -----------        -----------
            Net cash provided by financing activities                        447,924            153,571


Net Increase ( Decrease) in cash                                              (5,961)            20,641

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

Cash, Ending                                                                 $ 9,229           $ 21,280
                                                                          ===========        ===========
</TABLE>


Supplemental Disclosure of Noncash Financing Activities :

Note Payable converted into common stock                             $ 60,000.00
Stockholder loans converted into common stock                       $ 116,825.00


<PAGE>


Capita Research Group, Inc.

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

Results of Operations for the Three Months Ended June 30, 1998 and 1997

All statements  contained  herein that are not  historical  facts are based upon
current expectations. These statements are forward-looking in nature and involve
a number of risks and uncertainties. Actual results may differ materially. Among
the  factors  that  could  cause  actual  results to differ  materially  are the
following:  the availability of sufficient  capital to finance Capita's business
plans,  the market  acceptance  of Capita's  services and  competitive  factors.
Capita  wishes  to  caution  readers  not to place  undue  reliance  on any such
forward-looking  statements,  which  statements are made pursuant to the Private
Litigation Reform Act of 1995 and as a result, are pertinent only as of the date
made.

As disclosed in Form 10-SB/A filed in July 1998,  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 three 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 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  ongoing  technical  development,  creation of
corporate  infrastructure,  and initiation of a sale solicitation  program among
prospective media and advertising company prospects.

For these  reasons,  substantially  all of the  material  changes from period to
period in the  respective  Consolidated  Statements of Operations  for the three
months  ended June 30 reflect a basic  change of business  operations  and not a
change in comparable  operating results.  Accordingly,  in the period ended June
30, 1997 Media Solutions and MSII generated revenue of $13,991 from sales of its
MediaLink software product.  Total expenses of $247,924 were incurred largely in
connection with system sales and support  activities.  In the three month period
ended June 30, 1998 Capita Research Group,  Inc.  "Capita" had sales of $ 38,000
of its copy  testing  service.  This  accounts  for the entire  period-to-period
change  in  revenue.  Similarly,  Capita's  expenses  of  $278,174  reflect  the
technical development of the product, development of an infrastructure,  and the
start-up of testing operations..



<PAGE>


Capita Research Group, Inc.

         MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
                              RESULTS OF OPERATIONS

Results of Operations for the Six Months Ended June 30, 1998 and 1997

As disclosed in Form 10 -SB/A filed in July 1998,  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 six 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 six 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.

For these  reasons,  substantially  all of the  material  changes from period to
period in the  respective  Consolidated  Statements  of  Operations  for the six
months  ended June 30 reflect a basic  change of business  operations  and not a
change in comparable  operating results.  Accordingly,  in the period ended June
30, 1997 Media Solutions and MSII generated revenue of $86,804 from sales of its
MediaLink software product.  Total expenses of $521,988 were incurred largely in
connection  with system  sales and support  activities.  In the six month period
ended June 30, 1998 Capita Research Group,  Inc.  "Capita" had sales of $ 38,000
of its copy  testing  service.  This  accounts  for the entire  period-to-period
change  in  revenue.  Similarly,  Capita's  expenses  of  $804,062  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 $105,000 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  and the amendment thereto with the SEC.

Liquidity and Capital Resources at June 30, 1998

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 six months  ended June 30, 1998,  the Company  received  cash  proceeds of $
456,890 from the sale of common stock.  In addition,  the company  issued common
stock  in  exchange  for  loans  in  the  amount  of $  331,170  and  $  176,825
respectively.  At June 30, 1998 the financial  condition  remained impaired with
the working  capital  shortfall  being met by the issuance of common stock.  The
above  transaction  net of the  operating  loss had the effect of  reducing  the
stockholder  deficit by  $192,623  to a deficit of  $126,719  at June 30,  1998,
versus a deficit of $319,960 at December 31, 1997.


<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 six-month period ended June 30, 1998, are not
necessarily indicative of the results to be expected for the full year.

<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: August 14, 1998                        /s/ David B. Hunter
       ----------------------                        -------------------
                                                     David B. Hunter
                                                     President and 
                                                     Chief Executive Officer