Final Results

ABERFORTH GEARED CAPITAL & INCOME TRUST plc

PRELIMINARY RESULTS

For the year ended 31 December 2006


FEATURES

Total Returns

        Total Assets                                     + 28.6%
        Net Asset Value of Capital Shares1               + 54.8%
        Total Dividend per Income Share                     9.4p (+9.0%)

1  Capital Shares asset performance assumes Income Shares have a capital entitlement of 100p each.


CHAIRMAN'S STATEMENT TO SHAREHOLDERS

INTRODUCTION

I am pleased to report another positive year for Aberforth Geared Capital & Income Trust plc (AGCiT).  The FTSE
All-Share Index, the broadest stockmarket index in the UK, recorded a total return of 16.8%, while AGCiT's chosen asset
class of small UK quoted companies recorded a greater return of 28.0%, as measured by the Hoare Govett Smaller Companies
Index (Excluding Investment Companies) (HGSC (XIC)).

AGCiT's total assets generated a total return of 28.6%.  The net asset value of a Capital Share rose by 54.8% from
467.9p at 31 December 2005 to 724.5p at 31 December 2006.

In my statement last year I suggested that it would be unusual if the scale of returns enjoyed in each of the three
years to 2005 were repeated in 2006.  The unusual has indeed occurred and, in addition, the HGSC (XIC) return in 2006
marks the fourth year in succession that the HGSC (XIC), representative of smaller companies, has outperformed the FTSE
All-Share Index. This has been a most favourable background for your Company.

AGCiT began trading on 18 December 2001.  Your Company now has a five year investment record.  The returns over this
period from the asset class and your Company have, by historic standards, been exceptional.  The HGSC (XIC) has shown a
compound annual return of 16.8% since AGCiT's launch, the FTSE All-Share Index 8.8% and the NAV of a Capital Share
49.6%.  Suffice to say your Board and Managers are not extrapolating such high stockmarket returns for the remaining
five years of your Company's life.  The growth in net assets attributable to the Capital Shareholders has been assisted
by the balance sheet gearing. The increase in the Company's assets since launch has reduced the gearing ratio. It is not
the current intention to increase the borrowing facilities to take the gearing ratio of the Capital Shares back to
previous levels.

DIVIDEND

Your Board is pleased to declare a Second Interim Dividend of 5.90p per Income Share, an increase of 9.5% on the 5.39p
paid in respect of the comparative period last year.  When taken together with the First Interim Dividend of 3.50p, the
total dividends for the year of 9.40p represent an increase over the payments in respect of 2005 of 9.0%.  The Second
Interim Dividend will be paid on 22 February 2007 to Income Shareholders on the register at the close of business on 2
February 2007.  The "Ex Dividend" date will be 31 January 2007.

The level of increase in the dividends is encouraging as after payment of the Second Interim Dividend of 5.90p, £283,000
will be added to revenue reserves, which in total will then be equivalent to 3.7p per Income Share.

The 9.0% increase in the dividend is a substantial increment in the dividend growth rate from the 2.5% of the last four
years.  The faster rate of dividend growth is in part a reflection of the changes that have been made to the portfolio
over the past four years. The dividend yield of the portfolio relative to the dividend yield of the HGSC (XIC) has been
steadily reduced by investing in lower yielding companies that should be capable of generating better rates of dividend
growth than their higher yielding counterparts.

It is your Board's objective to attempt to sustain a smooth and rising trend in dividend payments to Income Shareholders
over the remainder of your Company's life.  Recent dividend growth from the companies in AGCiT's portfolio has been most
encouraging. There may well be a period in the next five years in which aggregate dividend growth for the HGSC (XIC)
constituents is considerably lower than current levels, possibly even showing an annual decline.  Such circumstances
would make your Board's objective more difficult to achieve.  With this in mind the increase in revenue reserves in 2006
improves the ability to sustain dividend growth should tougher times occur.   Any revenue reserves remaining at the date
of wind-up are, of course, the entitlement of the Income Shareholders.

CORPORATE GOVERNANCE: BUSINESS REVIEW

During 2005 the Companies Act 1985 was amended to introduce the requirement for companies to incorporate a "business
review" within the Directors' Report. The review provides further analysis of AGCiT's business, its performance during
the year, principal risks and key performance indicators.

GEARING

AGCiT has a policy of utilising its long term debt facilities close to their maximum level of £34.3m on a consistent
basis.

For the vast majority of the period under review AGCiT was in such a position.  There were brief periods during the year
in which, owing to the short term timing of the purchase and sale of investments, the debt facilities were not fully
utilised.  The year end happens to be one of those periods evidenced by the fact that only £30.3m of debt was being
utilised.

SUMMARY AND OUTLOOK

Several of the points with which I concluded my statement in 2005 remain pertinent today.  The abundant availability of
cheap debt is fuelling merger and acquisition activity (M&A) and causing asset prices to rise.  Eventually valuations
will rise to a level that prohibits debt funded M&A.  We are closer to this point now than 12 months ago.  However
economic conditions remain reasonable, M&A activity seems unabated and there is nothing in the immediate outlook to
suggest that recent positive trends are set to change.  However it would be a brave forecaster predicting a fifth
successive year of such propitious stock market conditions for your Company and its chosen asset class.

Whatever the future holds, your Board remains confident that your Managers' investment style, discipline and application
will continue to serve Shareholders well.

Alastair C. Dempster
Chairman
24 January 2007


The Income Statement, Balance Sheet, Summary Reconciliation of Movements in Shareholders' Funds,  and Summary Cash Flow
Statement are set out below: -

INCOME STATEMENT
For the year ended 31 December 2006
(unaudited)
                                         2006                       2005
                               Revenue  Capital   Total   Revenue  Capital   Total
                                 £'000   £'000          £'000            £'000    £'000   £'000

Realised gains on sales              -   16,404  16,404         -    7,627   7,627
Unrealised gains                     -   11,506  11,506         -   12,497  12,497
                                ------   ------  ------    ------   ------  ------
Gains on investments                 -   27,910  27,910         -   20,124  20,124
Dividend income                  3,724      487   4,211     3,324      761   4,085
Interest income                      5        -       5        22        -      22
Other income                         2        -       2         1        -       1
Investment management fee         (293)    (685)   (978)     (245)    (571)   (816)
Other expenses                    (198)    (544)   (742)     (201)    (338)   (539)
                                ------   ------  ------    ------   ------  ------
Net return before finance
costs and taxation               3,240   27,168  30,408     2,901   19,976  22,877
Finance costs: interest           (654)    (223)   (877)     (675)  (1,926) (2,601)
                                ------   ------  ------    ------   ------  ------
                                 2,586   26,945  29,531     2,226   18,050  20,276
Finance costs on Income Shares  (2,178)       -  (2,178)   (2,078)       -  (2,078)
                                ------   ------  ------    ------   ------  ------
Return on ordinary activities
before tax                         408   26,945  27,353       148   18,050  18,198
Tax on ordinary activities           -        -       -         -        -       -
                                ------   ------  ------    ------   ------  ------
Return attributable to
shareholders                       408   26,945  27,353       148   18,050  18,198
                                ======   ======  ======    ======   ======  ======
Returns per share
Income Share                     10.55p       -   10.55p     9.09p       -    9.09p
                                ------   ------  ------    ------   ------  ------
Capital Share                        -   256.63p 256.63p        -   171.90p 171.90p
                                ------   ------  ------    ------   ------  ------


NOTES

1.      The total column of this statement is the profit and loss account of the Company.  The supplementary revenue and
capital columns are both prepared under guidance published by the Association of Investment Companies. All revenue and
capital items in the above statement derive from continuing operations.  No operations were acquired or discontinued in
the period. A Statement of Total Recognised Gains and Losses is not required as all gains and losses of the Company have
been reflected in the above statement.

2.      The calculations of revenue return per Income Share are based on net revenue on ordinary activities before
distributions of £2.586 million (2005 £2.226 million) and on 24.5 million Income Shares.  The calculations of capital
return per Capital Share are based on net capital profits of £26.945 million (2005: profits of £18.050 million) and on
10.5 million Capital Shares.



SUMMARY RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
For the year ended 31 December 2006
(unaudited)

                                          2006            2005
                                         £ 000      £ 000

Opening shareholders' funds         51,085          32,887

Total recognised gains and losses
before dividends                        29,531          20,276
Dividends paid                          (2,178)         (2,078)
                                        ------          ------
Closing shareholders' funds         78,438          51,085
                                        ======          ======



BALANCE SHEET
As at 31 December 2006
(unaudited)
                                   31 December     31 December
                                          2006            2005
                                         £'000          £'000
Fixed Assets: Investments
Investments at fair value through
profit or loss                         133,087         111,640
                                       -------         -------
Current assets
Debtors                                    286             328
Cash                                         1               -
                                       -------         -------
                                           287             328

Creditors (amounts falling due
within one year)                           (56)           (708)
                                       -------         -------
Net current assets/(liabilities)           231            (380)
                                       -------         -------
Total assets less current
liabilities                            133,318         111,260

Creditors (amounts falling due
after more than one year)              (54,880)        (60,175)
                                       -------         -------
TOTAL NET ASSETS                        78,438          51,085
                                       =======         =======

CAPITAL AND RESERVES
  Called up share capital                  105             105

Reserves:
 Capital redemption reserve                 50              50
  Special reserve                        9,674           9,674
  Capital reserve - realised            24,587          10,450
  Capital reserve - unrealised          41,660          28,852
  Revenue reserve                        2,362           1,954
                                       -------         -------
TOTAL EQUITY                            78,438          51,085
                                       =======         =======

Net Asset Values:
  - per Income Share (Income Shares
are classified as financial
liabilities)                           86.77p            79.72p
  - per Capital Share                 777.91p           533.84p


NOTE
The Company had 24.5 million Income Shares and 10.5 million Capital
Shares in issue as at 31 December 2006 and 31 December 2005.



SUMMARY CASH FLOW STATEMENT
For the Year ended 31 December 2006
(unaudited)
                                                2006              2005
                                               £'000            £'000
CASH FLOW STATEMENT
Net cash inflow from operating activities      3,020             3,094
                                             -------           -------
Returns on investment and servicing of finance
Dividends paid                                (2,178)           (2,078)
Interest and other finance costs paid         (2,182)           (2,239)
                                             -------           -------
Net cash outflow from returns
on investment and servicing of finance        (4,360)           (4,317)
                                             -------           -------
Capital expenditure and financial investment
Payments to acquire investments              (40,305)          (25,268)
Receipts from sales of investments            46,281            27,543
                                             -------           -------
Net cash inflow from capital
expenditure and financial investment           5,976             2,275
                                             -------           -------
Net cash inflow before financing activities    4,636             1,052
                                             -------           -------
Financing activities
Loans repaid                                  (4,002)                -
                                             -------           -------
Net cash outflow from financing activities    (4,002)                -
                                             -------           -------
Change in cash during the period                 634             1,052
                                             =======           =======
Reconciliation of change in cash
to movement in net debt
Change in cash during the period                 634             1,052
Loans repaid                                   4,002                 -
Change in fair valuation of interest
rate swap                                      1,302              (352)
Amortisation of issue costs during
the period                                        (9)               (9)
                                             -------           -------
Change in net debt                             5,929               691
Opening net debt                             (60,808)          (61,499)
                                             -------           -------
Closing net debt                             (54,879)          (60,808)
                                             =======           =======

NOTES
1.      The financial statements have been prepared in accordance with UK generally accepted accounting practice (UK GAAP)
and the AIC's Statement of Recommended Practice " Financial Statements of Investment Trust Companies" issued in December
2005. The same accounting policies used for the year to 31 December 2005 have been applied.

2. The foregoing do not comprise Statutory Accounts (as defined in section 240(5) of the Companies Act 1985) of the
Company. The statutory accounts for the year to 31 December 2005, which contained an unqualified Report of the Auditors
under section 235 of the Companies Act, have been lodged with the Registrar of Companies and did not contain a statement
required under section 237(2) or (3) of the Companies Act 1985.

3. It is anticipated that the Annual Report will be posted to shareholders during week commencing 29 January 2007.
Members of the public may obtain copies from Aberforth Partners LLP, 14 Melville Street, Edinburgh EH3 7NS or from its
website at www.aberforth.co.uk.

Contact:     John Evans or David Ross - Aberforth Partners LLP - 0131 220 0733
Aberforth Partners LLP, Secretaries - 24 January 2007
ANNOUNCEMENT ENDS