Final Results

ABERFORTH GEARED CAPITAL & INCOME TRUST plc

Audited Final Results for the year to 31 December 2009

The following is an extract from the Company's Annual Report and Accounts for
the year to 31 December 2009. The Annual Report is expected to be posted to
shareholders on 30 January 2010. 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. The Annual Report and Accounts will shortly be
available for inspection at the FSA's document viewing facility at 25 The
North Colonnade, Canary Wharf, London E14 5HS.

KEY FEATURES

Total Assets Total Return                +39.4%

Net Asset Value of Capital Shares (1)   +228.0%

Second Interim Dividend per Income Share   6.7p (unchanged)

Total Dividend per Income Share           12.6p (unchanged)

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

The investment objective of Aberforth Geared Capital & Income Trust plc is to
provide Income Shareholders with a high level of income payable half yearly with
the potential for income growth and to provide Capital Shareholders with geared
capital growth.

All  data throughout this Annual Report is to, or as at, 31 December 2009  as
applicable, unless otherwise stated.


CHAIRMAN'S STATEMENT TO SHAREHOLDERS

INTRODUCTION
Aberforth  Geared Capital & Income Trust (AGCiT) recorded a  total  return  on
total  assets  of  39.4%  during 2009.  Over the same period  the  index  that
represents AGCiT's chosen asset class, the RBS Hoare Govett Smaller  Companies
Index  (Excluding Investment Companies) (HGSC (XIC)), recorded a total  return
of  60.7%.   The  FTSE  All-Share Index, representative of  larger  companies,
showed a total return of 30.1%.

AGCiT's  borrowings consist of a long term facility of £34.3m that expires  on
31 December 2011. A supplementary overdraft facility of £4m negotiated in 2004
expired on 31 May 2009 and was not renewed.

Following  detailed discussion and consideration during the first  quarter  of
2009, your Board and Managers resolved to maintain AGCiT's level of borrowings
towards  the upper limit of the available facility for the foreseeable future.
This has proven to be beneficial to the Company's asset performance given  the
significant rise in the equity market described above.  The Net Asset Value of
a  Capital  Share (assuming 100p prior charge for the Income Share) rose  from
91.9p  on  31  December 2008 to 301.5p on 31 December 2009 -  an  increase  of
228.0%.

INTEREST RATE SWAP
AGCiT  has  an interest rate swap that was put in place immediately  following
the  formation of the Company, as described in the Company's prospectus.   The
purpose  of  the swap was to remove volatility in the interest cost  and  thus
create greater certainty as to the Company's net income and dividend payments.

The  swap  matures on 30 September 2011.  At 31 December 2009 the swap  had  a
liability value of £1,991,000.  The liability value is due to the low level of
the  prevailing interest rates compared with the rate at which  the  swap  was
agreed.   The  movement in the prevailing value of the swap  has  either  been
credited to or charged against the Capital of the Company throughout its life.
Currently  the liability value is equivalent to -19.0p per Capital  Share.  It
has  always been the intention to allow this swap arrangement to run until its
maturity at which point it will have a zero value.  The maturity date  of  the
swap is three months ahead of the scheduled wind up date of the Company.

DIVIDENDS
The  Directors have approved an unchanged second interim dividend of 6.7p  per
Income Share. When taken together with the first interim dividend of 5.9p, the
total dividend declared for the year is 12.6p, the same level as was paid with
respect  to 2008.  Earnings per Income Share for 2009 were 11.4p and therefore
£294,000 (1.2p per Income Share) has been drawn from revenue reserves in order
to  maintain  the  dividend.   Following this  payment  the  retained  revenue
reserves will be £1,166,000, equivalent to 4.75p per Income Share. The  second
interim  dividend will be paid on 26 February 2010 to Income  Shareholders  on
the register at the close of business on 5 February 2010. The ex-dividend date
will be 3 February 2010.

PERFORMANCE
The  difference between the 60.7% total return of the HGSC (XIC) and the 39.4%
total return on AGCiT's total assets is disappointing but a number of comments
should  be noted in relation to the 2009 relative performance.  The return  of
the  HGSC (XIC), and in particular its significant rise since March 2009,  was
dominated   by   a   small  group  of  higher  risk  equities   whose   common
characteristics include, weak balance sheets owing to high borrowings and  the
consequent likely requirement to raise equity finance, pension fund  deficits,
and an inability to pay dividends to Shareholders.

Throughout its life AGCiT has eschewed investing in highly leveraged companies
principally  because  AGCiT's own balance sheet has been  consistently  highly
leveraged  and  it  was  considered inappropriate to double  the  exposure  to
financial leverage.

The  lack of dividend payments by a significant proportion of the higher  risk
companies that led the market for much of the year rendered them inappropriate
investments for AGCiT.

AGCiT's  underlying dividend income declined by an estimated  15%  in  2009  -
significantly  less than the income reduction experienced by  the  opportunity
base.

The sustained use of AGCiT's borrowing facilities during 2009 enhanced returns
for  Capital Shareholders in a rising equity market.  The use of leverage also
enhances   income   for  the  Income  Shareholders  on   an   ongoing   basis.
Consequently,  while in 2009 the relative performance of the assets  has  been
poor,  the  absolute return, assisted by the consistent use of  leverage,  has
been satisfactory.

Further  and more detailed comments on the performance of the HGSC  (XIC)  and
the portfolio during 2009 are to be found in the Managers' report.

OUTLOOK
I am pleased to be able to report returns that are much more satisfactory than
those for 2008 and 2007.  There remains some uncertainty, particularly in  the
UK, as to the continued path of economic and financial recovery.  Share prices
of  companies in the opportunity base have recovered significantly since March
2009  as  the  visibility of economic recovery became clearer.   Despite  this
recovery,  your  Managers  can  still  identify  attractive  opportunities  at
prevailing  stock market valuations.  In view of this, it is the intention  to
maintain  the  gearing at or close to its current near maximum level  for  the
foreseeable  future.   This is a position that your Board  and  Managers  keep
under constant review particularly as the Company enters the penultimate  year
of its planned life.

Alastair C Dempster
Chairman
25 January 2010



MANAGERS' REPORT

PERFORMANCE
The  HGSC  (XIC)'s  total return of 60.7% makes 2009 its best year  of  absolute
performance in both AGCiT's eight year history and Aberforth Partners'  nineteen
year  history.  AGCiT's total asset total return of 39.4% was some  way  behind.
However,  in  absolute  terms this ranks as AGCiT's best  ever  year,  which  is
important in view of the capital structure and makes a pleasant change from  the
declines  of  2008.  Large companies meanwhile performed less well,  though  the
30.1%  total  return  from the FTSE All-Share stands out in its  own  historical
context.

The  following  paragraphs explain the strong performance of the HGSC  (XIC)  in
2009 before moving on to address the relatively weak returns from AGCiT.

SMALL COMPANIES
The  HGSC  (XIC)'s rise in 2009 has to be viewed against the background  of  the
substantial decline of 40.8% in 2008: over the two year period the total  return
from  the index has been -4.9%.  Entering 2009, the market was confronted  by  a
recession that was exacerbated by an unprecedented credit crunch - descent  into
depression  was  a  widespread  concern.  Risk  aversion,  reflected  in  equity
valuations  and stretched credit market spreads, was at extreme  levels  in  the
wake of Lehman's collapse.  Governments and central banks were in the middle  of
unleashing substantial fiscal and monetary stimuli, which went on to  enter  the
uncharted   territory  of  quantitative  easing.   The  climate  of  uncertainty
persisted  for  much of the first quarter and was reflected in  company  results
that were characterised by deep cost cutting and sharp reductions in dividends.

However,  in mid March, small company share prices hit their lows for the  year,
from  which  they  went on to bounce by 73%.  This recovery has  been  based  on
improving  fundamentals.   The  global economy  has  bottomed  and  subsequently
started  to  pick up.  A majority of major economies have now exited  recession,
with the UK as yet a notable exception.  As the year progressed, businesses  saw
destocking  come to an end and the start of tentative restocking in  the  latter
part of the year.  Sustainable demand levels remain unclear, but the combination
of  restocking and sharply reduced cost bases promises a period of good  profits
growth moving into 2010.

At  the  same  time, the extreme risk aversion of 2008 has eased.  Important  in
this  regard have been the conventional and unconventional activities of central
banks  to influence the cost of borrowing.  Notwithstanding the banks' focus  on
repairing their own balance sheets, this has filtered through financial markets,
bringing many spreads in the credit markets back to levels that prevailed  prior
to  the failure of Lehman.  Waning risk aversion has also been evident in equity
markets,  which have been led upwards by smaller companies and emerging markets,
traditionally considered to be at the riskier end of equity investment.   Though
more  powerful,  the risk rally of 2009 is thus reminiscent of  2003,  when  the
markets  bounced strongly on recovery from the US's mini-recession at the  start
of the decade.

A  catalyst  for  this  rediscovered appetite for risk was the  preparedness  of
equity investors to finance the substantial volume of rights issues and placings
from highly geared companies.  Within the small company universe, this flood  of
re-equitisation started at the end of January, when valuations  were  at  levels
that  suggested many UK businesses could go under.  While the banks often retain
rather  too  much influence, the removal of the risk of imminent  failure  added
longevity to the equity of these geared companies and justified a re-rating from
what were extremely low valuations of historical earnings.

Indeed,  the  historically  low  valuations that  characterised  the  small  cap
universe are perhaps the most important way to understand the strong rally.  The
HGSC (XIC) came into 2009 valued on a historical PE of 6.4x and a yield of 5.9%,
on  both  measures the cheapest over AGCiT's history.  Clearly, a proportion  of
this  apparent  cheapness  was  justified by the sharp  drops  in  earnings  and
dividends  that companies went on to report as the year progressed:  the  lowest
historical  PEs  were  certainly to be found among  those  companies  that  were
characterised  by  the unpleasant cocktail of falling profits,  high  debts  and
pension  fund deficits.   However, with the benefit of hindsight,  it  is  clear
that  these low valuations were overplaying the risk of descent into depression.
The  subsequent  stabilisation  and  even improvement  in  economic  and  credit
conditions have therefore provided the basis of a powerful re-rating  that  took
the historical PE up to 11.2x by the end of the year.

AGCiT'S RELATIVE PERFORMANCE
An  understanding of the mechanics of the HGSC (XIC) is a useful starting  place
for  an  explanation  of  AGCiT's relative under performance.   The  HGSC  (XIC)
comprises   those  companies  that  make  up  the  bottom  10%  of  the   market
capitalisation of the total UK market, excluding AIM.  At the end of 2009,  this
definition  drove  a  ceiling of £1.188bn: in other words, any  company  with  a
market capitalisation of £1.188bn or less at 31 December 2009 is a member of the
HGSC  (XIC)  in 2010.  The index is rebalanced just once a year, on  1  January.
Ordinarily,  this  rebalancing exercise is rather  low  key,  with  turnover  of
perhaps half a dozen companies.  In 2009 it was not ordinary: 40 companies  were
relegated  to  the rebalanced HGSC (XIC).  As described in the  interim  report,
these companies represented a quarter of the index at the start of the year  and
together enjoyed a total return of 80% in 2009.

However,  the typical `fallen star' exemplified those characteristics that  were
shunned  in 2008: high debts, falling profits, significant pension deficits  and
reduced  dividends.   So, in aggregate, the share prices of  this  group  of  40
companies fell by almost two thirds in 2008, which was, of course, what cut them
down  to  a  size  that  meant inclusion in 2009's HGSC  (XIC).   Your  managers
simulate  a rebalanced HGSC (XIC) through the year, so it was not the case  that
they were suddenly overwhelmed on 1 January by the surprise inclusion of 40  new
companies:  the  analytical work on these businesses was conducted  through  the
second half of 2008.

Rather, the relevance of the `fallen stars' to AGCiT's relative performance  are
their   typical  characteristics  previously  described:  with  equity   capital
encumbered  by substantial debts and pension deficits, this was a  riskier  than
average  group of companies.  In contrast, the portfolio came into 2009  with  a
defensive  orientation: the two strong themes detailed  in  last  year's  annual
report  were  those  of robust balance sheets and `being  paid  to  wait'  by  a
sustainable dividend yield through a downturn of uncertain duration.  While each
proved advantageous in 2008, neither helped in 2009: the more rewarding strategy
would  have been to pursue those companies that combined cut dividends and  high
levels  of  debt.  Thus, your managers were too risk averse for  the  investment
climate that developed through 2009.


Performance Attribution Analysis

For the year ended 31 December 2009
                                                         Basis
                                                         Points

Stock Selection                                          (1,731)
Sector Selection                                           (419)
                                                         ------
Attributable to the portfolio of investments (mid-basis) (2,150)
Impact of mid-price to bid-price                             71
Gearing/cash                                             20,855
Management fee                                             (427)
Interest cost                                            (1,456)
Movement in swap valuation                                  124
Other expenses                                             (295)
                                                         ------
Total Attribution                                        16,722
                                                         ------

Note: 100 basis points = 1%.  Total Attribution is the
difference between the total return performance of the
Capital Share net asset value and the HGSC (XIC) (i.e.
Capital Share net asset value = 227.95%; HGSC (XIC) =
60.73%; difference is 167.22% being 16,722 basis points).


The  short  duration of the downturn and the speed of return to  the  investment
behaviours that prevailed prior to the credit crunch have been startling.

  ·  During the UK's last recession, in the early 1990s, small company earnings
     fell for three consecutive years.  In the present downturn, if analysts are
     correct, the period of earnings contraction may be confined to just 18 months,
     despite  the accompanying credit crunch.  This itself would be a remarkable
     outturn.  However, extrapolating from this, the equity valuations of a number of
     cyclical businesses are already discounting a rapid return to previous peak
     levels  of  profitability.  This seems improbable in view of the structural
     challenges, principally significant levels of debt, faced by many economies.

  ·  The  equity  issues that have resuscitated a number of distressed  small
     company equities, including a large portion of the `fallen stars', have not
     necessarily provided a long term cure.  The banks and pension fund trustees
     frequently remain very influential, though this influence on the value due to
     equity holders might not become manifest until the debt facility next comes up
     for  renewal or until the outcome of the next triennial pension  review  is
     revealed.

  ·  The investment strategies that were popular up into the first half of 2008
     but that suffered in the second half of that year have returned to favour more
     quickly  than expected.  In particular, commodities have enjoyed  a  strong
     revival, as have businesses exposed to China's secular growth story.  There is
     evidence that these may be benefiting from a return of carry trade activity,
     i.e. borrowing in currencies with low interest rates such as the dollar and
     investing in riskier, higher-yielding assets.  This plays to concerns that an
     element of the monetary authorities' largesse is being diverted directly into
     asset markets rather than being passed on through the banking system.

General  caution  about  the  speed, rather than the  reality,  of  recovery  is
therefore  an  important factor in understanding AGCiT's  relative  performance.
This  is  reflected in the table above, which shows negative contributions  from
both stock and sector selection: your managers' risk aversion limited the amount
of  capital  exposed  to those stocks, and indeed sectors, where  highly  geared
balance sheets were a feature.  Below this over-arching theme, there were  other
influences at work that provide more colour on the relative performance.

  ·  The portfolio contained many stocks that performed well in 2009.  At the
     end  of the year, there were 61 holdings but, over the course of the twelve
     months, positions were taken in 83 companies.  Of those, 18 out-performed, out
     of which eight more than doubled.  However, of the doublers, none sat within the
     top ten holdings at the start of the year.  This in part reflects the speed with
     which the market's mood changed in the first quarter in 2009.  But it is also
     clear  that relative performance could have been enhanced by better capital
     allocation: attractively valued businesses were identified but could have been
     pushed further up the portfolio.  On the other hand, any stock that suffered an
     absolute fall in price had a significant impact on relative returns against the
     60.7%  rise  of the HGSC (XIC).  Three holdings combined sharp share  price
     declines with top ten positions within the portfolio at the start of the year.
     These three thus had a substantial impact on returns.

  ·  Half of the negative impact from Sector Selection can be accounted for by
     Nonlife Insurance.  The portfolio was over-weight in Nonlife Insurance, with
     three holdings at the start of the year.  The sector had performed very well in
     2008, actually managing to rise by 15%.  However, what were considered positive
     attributes  in 2008 - high sustainable dividend yields, low price  to  book
     valuations and little exposure to the general economic cycle - came  to  be
     perceived as handicaps in 2009 as the market rediscovered its appetite for risk.
     The sector therefore under-performed by a wide margin in 2009, with a return of
     -7%.   This  has left its constituents offering some of the most attractive
     valuations within the HGSC (XIC), which argues for maintaining a meaningful
     exposure to the sector in expectation of another change in the stockmarket's
     sentiment.

  ·  Prior to the onset of the credit crunch and recession, the UK stockmarket
     benefited from the phenomenon of de-equitisation: the stock of quoted equity
     capital shrank between 2003 and 2007 as new issuance was out-weighed by share
     buybacks,  dividends and takeover activity boosted by the highly  leveraged
     techniques  of private equity.  This provided technical support  to  equity
     valuations,  particularly  in  the small company  universe.   However,  de-
     equitisation went into reverse in 2008 as the banks started their rights issues.
     This  new  trend of re-equitisation continued in 2009, with small companies
     contributing to substantial equity issuance: almost a fifth of the HGSC (XIC)'s
     constituents issued new equity that was equivalent to at least a tenth of their
     outstanding equity capital at the start of the year.  As already described, the
     willingness of shareholders to support these funding exercises made an important
     contribution to the ensuing rally in share prices.  The discounts of the placing
     price to the prevailing market were typically wide and, from the portfolio's
     point of view, could provide good opportunities to establish a holding, as long
     as the new equity provided sufficient comfort against remaining debt covenants.
     In all, the portfolio participated in nine equity issues.

     While  equity issuance exploded, M&A activity dropped sharply,  running  at
     around  one  third of its average over the past ten years.  This  reflected
     caution  in  the  face of recession on the part of company boards  and  the
     difficulty in securing debt funding as banks sought to repair their balance
     sheets.   Reflecting  your  managers'  value  investment  philosophy,   the
     portfolio has historically benefited disproportionately from M&A and indeed
     had  holdings  in  three of the 14 companies in the HGSC  (XIC)  that  were
     acquired  in 2009.  A return to normal levels of activity in 2010 would  be
     beneficial.   There are numerous indications that this might be  the  case,
     with  corporate  transactions already picking up in  the  US  and  with  UK
     assets, by virtue of lower valuations and the weakness of sterling, looking
     vulnerable.

  ·  In  terms of dividends, the portfolio out-performed the HGSC (XIC).   As
     noted in the interim report, the current recession has been considerably worse
     for dividends than was the previous downturn.  At work have been not only the
     understandable pressures of recession and troubled lenders,  but  also  the
     frustrating influences of fashion and weak advice.  Large companies,  whose
     dividends in aggregate escaped unscathed from the recession of the early 1990s,
     have  seen  a decline of roughly 20% in the present downturn, substantially
     reflecting  the problems of the banking sector.  The experience  for  small
     companies is also worse: the drop of 35-40% over the last 18 months compares
     with a fall of 20-25%, spread over a three year period, in the early 1990s.
     Moving into 2010, one third of the HGSC (XIC) had no dividend yield.

     Given  its capital structure and consequent focus on income, AGCiT  avoided
     the  worst  of  these  dividend declines but nevertheless  saw  its  income
     decline by over 15% in 2009.  With the HGSC (XIC)'s dividends having fallen
     further,  the  portfolio's historical yield relative to that  of  the  HGSC
     (XIC)  moved  up  steadily to end the year at a 55%  premium.   Since  this
     movement  was  substantially  influenced by the  widespread  dividend  cuts
     outwith  the  portfolio, your managers do not believe that it  indicates  a
     deterioration  in  quality  within  the  portfolio.   Indeed,  the  implied
     dividend  cover  of the portfolio is, at 2.9x, at its highest  ever  level.
     Moreover, the income profile is not dependent on very high yielding  stocks
     whose prospects of dividend growth might be considered to be limited,  with
     82% of the portfolio invested in companies yielding less than 5%.

LOOKING FORWARD
From  a  macro economic perspective, it is difficult to muster a lot of optimism
at  the  current time about the world's developed economies.  Policymakers  have
thus  far  done  a good job in staving off the risk of the recession  spiralling
into   depression.   However,  the  measures  required  to  achieve  this   have
essentially  been an exercise in moving lumps of debt from the  private  to  the
public  sector.   The  burden  of structurally high  levels  of  debt  therefore
persists  and this has to be worked down over time.  It is reasonable to  expect
this  to  place  a  limit  on economic growth over the  medium  term.   This  is
particularly relevant to the UK, where the next government will have to  embrace
public  spending  cuts  and where the savings rate among  consumers  is  heading
upwards.

With  interest  rates  and government bond yields at their present  low  levels,
financing  high  public  borrowing is not too  demanding.   However,  there  are
threats.   Government  bond yields have been held down for  the  time  being  by
purchases  by  central banks and, as the year drew to a close, the  gilt  market
weakened  as  fears built about the UK's fiscal position.  Moreover,  scope  for
monetary  policy  error lingers.  Thus far, rhetoric from the central  banks  is
hinting  at  a bias to keeping rates `lower for longer' in order to  reduce  the
perceived  risk  of mistakes made in the 1930s depression.  This,  however,  has
reignited  concerns about resurgent inflationary pressure and focused  attention
on  exit  strategies from the current phase of loose monetary  policy.   Peering
into  2010,  it is safe to state that the financial markets' focus  of  concerns
will continue to oscillate between inflation and deflation.

But  there  are  offsetting factors, principally the increasing contribution  to
global  economic  growth  of emerging markets and the  relative  health  of  the
corporate  sector.   Recoveries from recession over the past couple  of  decades
have  typically  been  led by the US consumer, who has  responded  in  Pavlovian
fashion  to interest rate reductions.  However, with the US consumer at last  in
retrenchment  mode  and  the  current account  deficit  narrowing,  the  present
recovery  has  been  substantially powered by China and other emerging  markets.
And  within  China, the incremental growth has come not from the export  sector,
which  is  in  any case highly dependent on the US consumer, but  on  internally
generated  demand.  It would no doubt be better if this demand  originated  from
the private sector rather than from the state, but the key issue is the fact  of
an  alternative  and  autonomous source of growth  that  eases  the  process  of
adjustment within developed economies.

Meanwhile, in the wake of recession and credit crunch, the corporate  sector  in
both  the  UK and US is in surprisingly good shape.  Contributing to  this  have
been  the  substantial  equity  issuance  seen  through  2009,  reduced  capital
expenditure budgets, and the rapidity with which management teams reacted to the
downturn  with  cost  reductions.  The strain has been  taken  by  labour,  with
unemployment rates rising to multi year highs in several economies.  While  this
dynamic  curbs  the  enthusiasm of consumers to spend, it is consistent  with  a
recovery that might be led initially by profits and then by capital expenditure.
With  ample  spare  capacity,  such a scenario might  also  offer  some  comfort
regarding inflation.

This  relative  strength of the corporate sector is evident in  the  substantial
opportunity  base  that  is the HGSC (XIC), where trading  conditions  for  many
businesses have stabilised and, boosted by tentative restocking, are starting to
pick  up.   This  improvement  is reflected in the  strong  returns  from  small
companies  in  2009  and, as the table below demonstrates,  has  precipitated  a
substantial re-rating: historical PEs moved from 6.4x to 11.2x over  the  course
of the year.


                           31 December 2009       31 December 2008

Characteristics            AGCiT   HGSC(XIC)     AGCiT    HGSC(XIC)
Number of Companies          61      448           67       495
Weighted Average Market    £347m    £619m        £249m    £442m
Capitalisation
Price Earnings Ratio        8.4x    11.2x        6.4x     6.4x
(Historic)
Net Dividend Yield          4.2%     2.7%        6.1%     5.9%
(Historic)
Dividend Cover (Historic)   2.9x     3.3x        2.6x     2.6x

Despite  this  re-rating,  small companies remain at  the  cheap  end  of  their
valuation  range over Aberforth's history.  The average historical PE  over  the
past  19 years has been 14x and, in the recovery phase of the recession  in  the
early  1990s, it moved up to 18x.  While the structural issues besetting the  UK
economy  may  prevent  a  return  to  this  level  of  valuation,  there   would
nevertheless  appear to be good scope for further re-rating  on  the  assumption
that the recovery is sustained.

Valuations  within  AGCiT's portfolio are lower.  The  historical  PE  moved  up
through  2009, from 6.4x to 8.4x, but not as sharply as that of the HGSC  (XIC),
reflecting the lower return and also a more resilient earnings performance  from
the  portfolio.   On  both  an absolute and relative  basis,  the  portfolio  is
offering what is approaching its best value over AGCiT's history.  Crucially, in
your managers' opinion, this has not been facilitated by a sacrifice of quality.
The  portfolio  retains its bias to companies with strong balance  sheets,  with
over  a  third  invested in businesses with net cash.  Such  financial  strength
affords  these companies flexibility to invest, which might reasonably  prove  a
competitive  advantage at a time when banks still appear reluctant  to  lend  to
indebted businesses.  The income profile of the portfolio might offer additional
comfort,  with  the  average  dividend yield of 4.2%  never  better  covered  by
earnings and significantly higher than that of the HGSC (XIC).

While  not being complacent about the challenges facing the domestic and  global
economies, the availability of well financed and attractively valued businesses,
such  as those that make up the portfolio, argues strongly for AGCiT to maintain
its  level of borrowing towards the upper limit of its available facility.  This
would  be  subject  to  change  when absolute valuations  move  closer  to  more
appropriate levels.  In the meantime, your managers believe that the closure  of
these  value  gaps, in a portfolio of stocks with robust income characteristics,
should  put AGCiT in a good position to meet the requirements of both its Income
and Capital Shareholders.

Aberforth Partners LLP
Managers
25 January 2010



DIRECTORS' RESPONSIBILITY STATEMENT

DECLARATION
Each of the Directors confirm to the best of their knowledge that:

  (a)the financial statements, which have been prepared in accordance with
     applicable accounting standards, give a true and fair view of the assets,
     liabilities, financial position and profit or loss of the Company; and

  (b)the Annual Report includes a fair review of the development and performance
     of the business and the position of the Company, together with a description of
     the principal risks and uncertainties that it faces. A summary of the principal
     risks are set out below.

On behalf of the Board
Alastair C Dempster
Chairman
25 January 2010



PRINCIPAL RISKS AND RISK MANAGEMENT

The  Company's  financial  instruments comprise its investment  portfolio,  cash
balances,  borrowing  facility, interest rate swap, Income Shares,  debtors  and
creditors  that arise directly from its operations such as sales  and  purchases
awaiting  settlement  and  accrued income. The  Directors  have  established  an
ongoing process for identifying, evaluating and managing the key risks faced  by
the  Company.  This process was in operation during the year  and  continues  in
place  up  to the date of this report. As the Company's investments  consist  of
small  UK  quoted companies, the principal risks facing the Company  are  market
related  and an explanation of these risks and how they are managed is  set  out
below.

The main risks that the Company faces from its financial instruments are:
(i)  interest rate risk, being the risk that the interest receivable/payable and
the  market  value of investment holdings may fluctuate because  of  changes  in
market interest rates;
(ii)  liquidity  risk  is  the risk that the Company will  encounter  difficulty
raising funds to meet its cash commitments as they fall due. Liquidity risk  may
result from either the inability to sell financial instruments quickly at  their
fair values or from the inability to generate cash inflows as required;
(iii) credit risk is the risk that a counterparty to a financial instrument will
fail to discharge an obligation or commitment that it has entered into with  the
Company; and
(iv)  market  price  risk, being the risk that the market  value  of  investment
holdings  will  fluctuate  as a result of changes in  market  prices  caused  by
factors other than interest rate or currency rate movement.

The  Company's  financial  instruments  are  all  denominated  in  sterling  and
therefore the Company is not directly exposed to any significant currency  risk.
However, it is recognised that most investee companies, whilst listed in the UK,
will be exposed to global economic conditions and currency fluctuations.

(i) Interest rate risk
The  Company has long term borrowing facility amounting to £34.3m with the  Bank
of  Scotland which it utilises on a regular and consistent basis. Interest  rate
fluctuations  on  £30m of long term borrowings are managed through  an  interest
rate  swap  agreement with Bank of Scotland which produces  an  effective  total
fixed interest rate of 6.47%. Borrowings in excess of £30m are not covered by an
interest  rate  swap  agreement and are exposed to  fluctuations  in  UK  market
interest  rates. If LIBOR and bank base rate had increased by 1% the  impact  on
profit  or  loss  and  therefore Shareholders' equity would have  been  negative
£29,500  (2008: negative £19,000). If LIBOR and bank base rate had decreased  by
0.5%  the impact on profit or loss and therefore Shareholders' equity would have
been  positive £14,750 (2008: positive £9,500). The Company has no  exposure  to
movements  in LIBOR in respect of the £30 million referred to above, as  it  has
been  matched with a swap transaction. The calculations are based on  the  drawn
down  loan  facility as at the respective Balance Sheet dates which may  not  be
representative of the actual drawn down loan facility during the year. When  the
Company  decides to hold cash balances, all balances are held on  variable  rate
bank  accounts yielding rates of interest linked to bank base rate, which as  at
31  December 2009 was 0.5% (2008: 2%). The Company's policy is to hold  cash  in
variable  rate bank accounts and not usually to invest in fixed rate securities.
The  Company's  investment portfolio is not directly exposed  to  interest  rate
risk.

(ii) Liquidity risk
The Company's assets comprise mainly readily realisable equity securities which,
if  necessary,  can be sold to meet any funding requirements though  short  term
funding  flexibility can typically be achieved through the use of the bank  debt
facility.  The  Company's current liabilities all have a  remaining  contractual
maturity  of  less than three months with the exception of the Bank of  Scotland
long-term facility.

(iii) Credit risk
The  Company  invests  in UK equities traded on the London  Stock  Exchange  and
investment  transactions are carried out with a large number  of  FSA  regulated
brokers  with  trades typically undertaken on a delivery versus  payment  basis.
Cash  at  bank  is  held  with reputable banks with acceptable  external  credit
ratings. The investment portfolio assets of the Company are held by The Northern
Trust Company, the Company's custodian, in a segregated account. In the event of
the bankruptcy or insolvency of Northern Trust the Company's rights with respect
to  the  securities held by the custodian may be delayed or limited.  The  Board
monitors  the  Company's  risk by reviewing Northern  Trust's  internal  control
report.

(iv) Market price risk
The Company's investment portfolio is exposed to market price fluctuations which
are  monitored  by  the  investment managers  in  pursuance  of  the  investment
objective.  Further information on the investment portfolio is set  out  in  the
Managers'  Report.  No  derivative  or  hedging  instruments  are  utilised   to
specifically  manage  market price risk. If the investment  portfolio  valuation
fell  by  20%  at  31 December 2009 the impact on profit or loss  and  therefore
Shareholders' equity would have been negative £18.7m (2008: negative £14.2m). If
the investment portfolio valuation rose by 20% at 31 December 2009 the impact on
profit  or  loss  and  therefore Shareholders' equity would have  been  positive
£18.7m  (2008:  positive £14.2m). The calculations are based  on  the  portfolio
valuation as at the respective Balance Sheet dates and are not representative of
the  year as a whole. The fair value of the financial instruments held as at  31
December  2009 approximately equates to the book value. The fair  value  of  the
Income  Shares  is based on the quoted market price of 114.25p whilst  the  book
value reflects the projected final capital entitlement of 100p per Income Share.
The  fair value of the interest swap is based on the 1.75 year (2008: 2.75 year)
bid  swap  rate  supplied  by  the Bank of Scotland.  The  investment  portfolio
consists  of  listed  investments valued at their bid prices,  which  represents
their  fair  value.  The  Company is a split capital investment  trust.  In  the
Directors'  opinion the Income Shares and Capital Shares are  in  aggregate  the
true  equity  of the Company although the Income Shares must be disclosed  as  a
"financial  liability" due to the existence of a contractual obligation  on  the
Company  to  repay  to  Income Shareholders upon liquidation,  a  pre-determined
amount.

Additional risks faced by the Company, together with the approach taken  by  the
Board towards them, have been summarised as follows:

(i)  Investment objective - is to provide Income Shareholders with a high  level
of  income  payable  half yearly with the potential for  income  growth  and  to
provide Capital Shareholders with geared capital growth. The performance of  the
investment  portfolio may in short periods not achieve this objective.  However,
the  Board's aim is to achieve the investment objective whilst managing risk  by
ensuring  the  investment portfolio is managed appropriately within  the  longer
term horizon.

(ii)  Investment policy - a risk facing the Company is inappropriate sector  and
stock selection leading to a failure in achieving the investment objective.  The
Managers  have a clearly defined investment philosophy and manage a  diversified
portfolio, investing only in shares of companies that are considered capable  of
meeting  the Company's objective. Furthermore, performance against the index  of
the  Investment Universe and the peer group is regularly monitored by the Board.
The  Company  may  also be affected by events or developments  in  the  economic
environment  generally,  for  example, inflation  or  deflation,  recession  and
movements in interest rates.

(iii)  Share  price volatility - the Capital Shares can trade at a  discount  or
premium  to  their underlying net asset value. The highly geared nature  of  the
Company  makes  the share price of the Capital Shares more volatile  than  other
less  highly geared Investment Trusts. The Directors have decided a share buy-in
policy is not appropriate for the Company after taking into account factors such
as  the  planned  wind-up  date  of  the Company  and  the  anticipated  natural
dissipation of the Capital Share discount prior to the planned wind-up date.

(iv)  Regulatory risk - breach of regulatory rules could lead to  suspension  of
the  Company's  share price listing, financial penalties or  a  qualified  audit
report. Breach of Section 842 could lead to the Company being subject to capital
gains  tax. The Board receives quarterly compliance reports from the Secretaries
to monitor compliance with regulations.

(v) Operational/Financial risk - failure of the Managers' accounting systems  or
those  of  other  third party service providers could lead to  an  inability  to
provide  accurate  reporting  and  monitoring,  or  potentially  lead   to   the
misappropriation of assets. The Board reviews regular reports  on  the  internal
controls of the Managers and other key third party providers.

(vi)  Gearing risk - the Board believes that the Company has a relatively  high-
risk profile in the context of the investment trust industry. This belief arises
from  the Company employing a significant level of gearing to increase its yield
and  to  provide  the potential for a growing level of dividend income  and  the
potential  for geared capital appreciation. The Board intends that  the  Company
remain geared throughout its life.

Some mitigating factors in the Company's risk profile include the facts that the
Company:
· has a relatively simple capital structure;
· invests only in a diversified portfolio of small UK quoted companies; and
· outsources  all  of  its  main operational activities  to  recognised,  well-
established firms.

Investment  in  small companies is generally perceived to carry more  risk  than
investment  in  large  companies.  While  this  is  reasonable  when   comparing
individual  companies,  it  is  much less so when comparing  the  volatility  of
returns  from  diversified portfolios of small and large  companies.  The  Board
believes that the Company's portfolio is diversified. In addition, since returns
from  small  and  large  companies are not perfectly  correlated,  there  is  an
opportunity for investors to reduce overall risk by holding portfolios  of  both
small  and  large companies together. In summary, the Board regularly  considers
risks associated with the Company, the measures in place to monitor them and the
possibility of any other risks that may arise.



INVESTMENT PORTFOLIO
Thirty Largest Investments as at 31 December 2009

                        Valuation   % of
No. Company               £'000    Total    Business Activity
1   Greggs                3,753      4.0    Retailer of sandwiches, savouries
                                            and other bakery products
2   Domino Printing       3,452      3.7    Manufacture of industrial
                                            printing equipment
3   Spirax-Sarco          3,331      3.6    Engineering
    Engineering
4   Dunelm Group          3,306      3.5    Homewares retailer
5   Robert Wiseman        3,006      3.2    Processing and distribution of
    Dairies                                 milk
6   RPC Group             2,994      3.2    Manufacture of rigid plastic
                                            packaging
7   Brown (N.)Group       2,942      3.1    Home shopping catalogue retailer
8   JD Sports Fashion     2,805      3.0    Retailer of sports and leisurewear
9   Delta                 2,676      2.9    Galvanising, manganese products
                                            and industrial supplies
10  Spectris              2,638      2.8    Manufacture of precision
                                            instrumentation and controls
    Top Ten Investments  30,903     33.0
11  Beazley               2,455      2.6    Lloyds insurer
12  Phoenix IT Group      2,327      2.5    IT services
13  KCOM Group            2,193      2.3    Telecommunications services
14  e2v technologies      2,011      2.2    Manufacture of electronic
                                            components and sub-systems
15  Evolution Group       1,860      2.0    Stockbroker and private client
                                            fund manager
16  Huntsworth            1,855      2.0    International public relations
17  Holidaybreak          1,720      1.8    Holiday, travel and educational
                                            services
18  Keller Group          1,669      1.8    Ground and foundation engineer
19  Microgen              1,655      1.8    Software and related services
20  Regus Group           1,644      1.8    Serviced offices
    Top Twenty           50,292     53.8
    Investments
21  Hampson Industries    1,602      1.7    Aerospace and automotive
22  Game Group            1,583      1.7    Retailer of pc and video games
23  Smiths News           1,566      1.7    Newspaper distributor
24  Wilmington Group      1,516      1.6    Information and training to the
                                            professional business market
25  UMECO                 1,492      1.6    Advance composite materials and
                                            supply chain management
26  Micro Focus           1,460      1.6    Software
    International
27  Dialight              1,456      1.6    LED based lighting solutions
28  Shanks Group          1,454      1.6    Waste services
29  office2office         1,430      1.5    Distribution of office products
30  Collins Stewart       1,422      1.4    Stockbroker and private client
                                            fund manager
    Top Thirty           65,273     69.8
    Investments
    Other Investments(31)28,241     30.2
    Total                93,514    100.0
    Investments
    Net Liabilities     (59,047)
    Liabilities
    Total Net Assets     34,467



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

INCOME STATEMENT
(Audited)

For the year ended 31 December 2009
                                      2009                   2008
                             Revenue  Capital   Total   Revenue  Capital   Total
                               £'000    £'000   £'000     £'000    £'000   £'000

Realised losses on sales          -    (6,862) (6,862)       -    (2,378) (2,378)
Increase/(decrease) in fair       -    30,700  30,700        -   (45,324)(45,324)
value
                              ------  ------- -------   ------   ------- -------
Gains/(losses) on                 -    23,838  23,838       -    (47,702)(47,702)
investments
Dividend income                3,761      150   3,911    4,482       848   5,330
Interest income                   31        -      31       89         -      89
Other income                      13        -      13       12         -      12
Investment management fee       (177)    (412)   (589)    (276)     (645)   (921)
Other expenses                  (233)    (285)   (518)    (268)     (373)   (641)
                              ------  ------- -------   ------   -------  -------
Net return before finance      3,395   23,291  26,686    4,039   (47,872)(43,833)
costs and taxation
Finance costs: interest         (602)  (1,286) (1,888)    (668)   (3,317) (3,985)
                              ------  ------- -------   ------   -------  -------
                               2,793   22,005  24,798    3,371   (51,189)(47,818)
Finance costs on Income       (3,087)       -  (3,087)  (3,087)       -   (3,087)
Shares
                              ------  ------- -------   ------   -------  -------
Return on ordinary             (294)   22,005  21,711      284   (51,189)(50,905)
activities before tax
Tax on ordinary activities        -        -       -        (2)        -      (2)
                              ------  ------- -------   ------   -------  -------
Return attributable to         (294)   22,005  21,711      282   (51,189)(50,907)
Shareholders
                               =====  =======  ======   ======   =======  =======
Returns per share
Income Share                  11.40p       -    11.40p   13.75p       -    13.75p
                              ------  ------- -------   ------   -------  -------
Capital Share                     -    209.57p 209.57p      -   (487.51p)(487.51p)
                              ------  ------- -------   ------   -------  -------

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 £2.793 million (2008: £3.369
  million) and on 24.5 million Income Shares (2008: 24.5 million).  The
  calculations of capital return per Capital Share are based on net capital
  profits of £22.005 million (2008: losses of £51.189 million) and on 10.5
  million Capital Shares (2008: 10.5 million).



RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
(Audited)

For the year ended 31 December 2009

                               Capital
                     Share  redemption   Special  Capital  Revenue
                   capital     reserve   reserve  reserve  reserve   Total
                     £ 000       £ 000     £ 000    £ 000    £ 000   £ 000
Shareholders'
funds as at 31
December 2008          105          50     9,674     (175)   3,102  12,756
Return
attributable to          -           -         -   22,005     (294) 21,711
Shareholders
                     -----       -----    ------   ------    -----  ------
Shareholders'
funds as at 31         105          50     9,674   21,830    2,808  34,467
December 2009
                     =====       =====    ======   ======    =====  ======


For the year ended 31 December 2008

                              Capital
                     Share  redemption   Special  Capital  Revenue
                   capital     reserve   reserve  reserve  reserve   Total
                     £ 000       £ 000     £ 000    £ 000    £ 000   £ 000
Shareholders'
funds as at 31
December 2007          105          50     9,674   51,014    2,820  63,663
Return
attributable to          -           -         -  (51,189)     282 (50,907)
Shareholders
                     -----       -----    ------   ------    -----  ------
Shareholders'
funds as at 31         105          50     9,674     (175)   3,102  12,756
December 2008
                     =====       =====    ======   ======    =====  ======



BALANCE SHEET
(Audited)

As at 31 December 2009
                                         31        31
                                   December  December
                                       2009      2008

                                      £'000     £'000
Fixed Assets: Investments
Investments at fair value through    93,514    70,930
profit or loss
                                    -------   -------
Current assets
Debtors                                 421       448
Cash at bank                              1         -
                                    -------   -------
                                        422       448
                                    -------   -------
Creditors (amounts falling due
within one year)
Bank overdraft                            -     (136)
Amounts due to brokers                    -      (16)
Other creditors                        (46)      (87)
                                    -------   -------
                                       (46)     (239)
                                    -------   -------
Net current assets                      376       209
                                    -------   -------
Total assets less current            93,890    71,139
liabilities

Creditors (amounts falling due     (59,423)   (58,383)
after more than one year)
                                    -------   -------
TOTAL NET ASSETS                     34,467    12,756
                                     ======    ======

Capital and reserves: Equity
interests
Called up share capital:
Capital shares                          105       105

Reserves:
Capital redemption reserve               50        50
Special reserve                       9,674     9,674
Capital reserve                      21,830     (175)
Revenue reserve                       2,808     3,102
                                    -------   -------
TOTAL EQUITY                         34,467    12,756
                                     ======    ======

Net Asset Values:
  - per Capital Share               317.17p   120.16p
  - per Income Share (Income        104.75p   100.57p
Shares are classified as
financial liabilities)

NOTE
The Company had 24.5 million Income Shares and 10.5 million
Capital Shares in issue as at 31 December 2009 and 31 December
2008.


SUMMARY CASH FLOW STATEMENT
(Audited)

For the year ended 31 December 2009
                                        2009         2008
                                       £'000        £'000
CASH FLOW STATEMENT
Net cash inflow from operating         3,233       4,850
activities
                                     -------     -------
Taxation paid
Overseas tax suffered                      -          (2)

Returns on investment and
servicing of finance
Dividends paid                        (3,087)      (3,087)
Interest and other finance costs      (2,006)      (2,222)
paid
                                     -------      -------
Net cash outflow from returns
on investment and servicing of        (5,093)      (5,309)
finance
                                     -------      -------
Capital expenditure and
financial investments
Payments to acquire investments      (24,392)     (31,381)
Receipts from sales of                25,239       31,751
investments
                                     -------      -------
Net cash inflow from capital             847          370
expenditure and financial
investments
                                     -------      -------
Net cash outflow before              (1,013)          (91)
financing activities
                                     -------      -------
Financing activities
Loans drawn down/(repaid)              1,150          (45)
                                     -------      -------
Net cash inflow/(outflow) from         1,150          (45)
financing activities
                                     -------      -------
Change in cash during the period         137         (136)
                                      ======       ======
Reconciliation of change in cash
to movement in net debt
Change in cash during the period         137         (136)
Loans (drawn down)/repaid             (1,150)          45
Change in fair valuation of              120       (1,757)
interest rate swap
Amortisation of issue costs              (10)          (9)
during the period
                                     -------      -------
Change in net debt                      (903)      (1,857)
Opening net debt                     (58,519)     (56,662)
                                     -------      -------
Closing net debt                     (59,422)     (58,519)
                                      ======       ======


NOTES TO THE FINANCIAL STATEMENTS

1.   ACCOUNTING STANDARDS

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 and Venture
Capital Trusts'' issued in January 2009. The total column of the Income
Statement is the profit and loss account of the Company. All revenue and
capital items in the Income Statement are derived from continuing operations.
No operations were acquired or discontinued in the period. The same
accounting policies used for the year to 31 December 2008 have been applied
for the year to 31 December 2009.

2.     INVESTMENT MANAGEMENT FEE

                                    2009                    2008
                        Revenue  Capital  Total  Revenue Capital   Total
                          £'000    £'000  £'000    £'000   £'000   £'000
Investment   management     177      412    589      276     645     921
fee
                         ======   ====== ======  =======  ======  ======

3.   FINANCE COSTS
                                2009                    2008
                        Revenue  Capital  Total  Revenue Capital   Total
                          £'000    £'000  £'000    £'000   £'000   £'000
Interest  on base  rate      20       48     68       84     197     281
loans/overdraft
Interest on LIBOR loans     582    1,358  1,940      584   1,363   1,947
Change     in      fair       -     (120)  (120)       -   1,757   1,757
valuation  of  interest
rate swap
                         ------   ------ ------  -------  ------  ------
Total interest costs        602    1,286  1,888      668   3,317   3,985
                         ======   ====== ======  =======  ======  ======

                                  2009                    2008
                        Revenue  Capital  Total  Revenue Capital   Total
                          £'000    £'000  £'000    £'000   £'000   £'000
Second interim dividend   1,642       -   1,642    1,642      -    1,642
for  the year ended  31
December 2008  at  6.7p
(2007: 6.7p)
First  interim dividend   1,445       -   1,445    1,445      -    1,445
for  the year ended  31
December 2009  at  5.9p
(2008: 5.9p)
                         ------   ------ ------  -------  ------  ------
Total distribution        3,087       -   3,087    3,087      -    3,087
costs
                         ======   ====== ======  =======  ======  ======

A  second interim dividend for the year to 31 December 2009 of 6.7p will  be
paid on 26 February 2010 to Income Shareholders on the register at close  of
business on 5 February 2010.

4.   RETURNS PER SHARE

                                   2009                    2008
                        Revenue  Capital  Total  Revenue Capital   Total
                          £'000    £'000  £'000    £'000   £'000   £'000

Return    on   ordinary    (294)  22,005 21,711      282 (51,189) 50,907)
activities
Add  back dividends  on   3,087        -  3,087    3,087      -    3,087
Income Shares
                         ------   ------ ------  -------  ------  ------
Earnings   attributable   2,793   22,005 24,798   3,369  (51,189)(47,820)
to shareholders
                         ======   ====== ======  =======  ======  ======

Number of Income Shares   24.5m      -            24.5m      -
Number of Capital Shares     -    10.5m               -   10.5m

Returns per share         11.40p  209.57p         13.75p (487.51p)

5.   NET ASSET VALUE PER SHARE

Total net assets have been calculated in accordance with the provisions of
Financial Reporting Standard 4. Income Shares are classified as financial
liabilities and are carried on the balance sheet at their fair value of 100p
each which results in a total fair valuation of the Income Shares of
£24,500,000. This valuation does not reflect the rights of the Income Shares
under the Articles of Association on a return of assets. Set out below is a
reconciliation of Capital and Income share net asset values in accordance
with the Articles.

                                   2009                    2008
                        Revenue  Capital  Total  Revenue Capital   Total
                          £'000    £'000  £'000    £'000   £'000   £'000
Net  assets per Balance  34,467       -  34,467   12,756      -   12,756
Sheet
Revenue reserve         (2,808)    2,808      -   (3,102)  3,102       -
Capital entitlement  of      -    24,500 24,500        -  24,500  24,500
Income Shares as at  31
March 2011
Capital entitlement not  1,644   (1,644)      -    2,963 (2,963)       -
yet   transferred    to
Income Shareholders
                        ------   ------  ------  -------  ------  ------
Net assets per Articles 33,303   25,664  58,967   12,617  24,639  37,256
                        ======   ======  ======  =======  ======  ======

Number of Income Shares      -    24.5m               -    24.5m
Number of Capital Shares 10.5m       -            10.5m      -

NAV per share           317.17p  104.75p         120.16p 100.57p

6. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

                                        2009         2008
                                       £'000        £'000
Loan facility                          2,950        1,800
LIBOR loan facility                   30,000       30,000
Less: unamortised issue costs           (18)         (28)
Income shares                         24,500       24,500
Interest rate swap                     1,991        2,111
                                    ---------   ---------
Total                                 59,423       58,383
                                     ========    ========

7.   FURTHER INFORMATION

The foregoing do not comprise Statutory Accounts (as defined in section
434(3) of the Companies Act 2006) of the Company. The statutory accounts for
the year to 31 December 2008, which contained an unqualified Report of the
Auditors , 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(as amended).

Certain statements in this announcement are forward looking statements. By
their nature, forward looking statements involve a number of risks,
uncertainties or assumptions that could cause actual results or events to
differ materially from those expressed or implied by those statements.
Forward looking statements regarding past trends or activities should not be
taken as representation that such trends or activities will continue in the
future. Accordingly, undue reliance should not be placed on forward looking
statements.

Contact:     John Evans - Aberforth Partners LLP - 0131 220 0733
Aberforth Partners LLP, Secretaries - 26 January 2010

ANNOUNCEMENT ENDS