Final Results

ABERFORTH GEARED CAPITAL & INCOME TRUST plc

PRELIMINARY RESULTS

For the year-ended 31 December 2004


FEATURES

Total Returns

Total Assets                                26.9%
Net Asset Value of Notional Package1        42.9%
Net Asset Value of Capital Shares2          91.5%
Total Dividend per Income Share              8.405p [+2.5%]


1  Notional Package is made up of 70% Income Shares and 30% Capital Shares.
2  Capital Shares asset performance assumes Income Shares have a capital
   entitlement of 100p each.

Aberforth  Geared Capital & Income Trust plc invests only in  small  UK  quoted
companies, does not invest in any unquoted securities, AIM listed securities or
securities issued by investment trusts or investment companies.

CHAIRMAN'S STATEMENT TO SHAREHOLDERS

INTRODUCTION

Aberforth Geared Capital & Income Trust plc (AGCiT) achieved a total return  on
its total assets of 26.9% for the year to 31 December 2004.  The FTSE All-Share
Index registered a total return of 12.8% and the Hoare Govett Smaller Companies
Index  (Excluding  Investment Companies) achieved  a  total  return  of  20.7%.
Consequently  I  can  report  on a period in which  two  key  factors  for  the
Company's  success  have been favourable: stockmarkets have generated  positive
returns  and  the  return from AGCiT's chosen asset class  -  Small  UK  Quoted
Companies - has been relatively good.

Small  companies outperformed large companies during 2004 despite the  headwind
of  rising  short  term interest rates.  Corporate performance,  not  least  in
relation to cash generation, was good.  The result is relatively strong balance
sheets,  which diminish the impact of rising interest rates compared with  past
cycles.   There is also evidence that dividends from small companies grew  more
quickly than those from large companies during 2004.

The  positive  return at the total asset level is enhanced by the gearing  that
AGCiT  employs.  After allowing for the 100p final capital entitlement  of  the
Income  Shares,  the  net asset value of a Capital Share  rose  by  91.5%  from
164.32p on 31 December 2003 to 314.63p on 31 December 2004.

I  mentioned  in  my statement in June that AGCiT had increased  its  borrowing
facilities to a total of £38.3m in order that more efficient use might be  made
of  the long term debt facilities put in place at the time of launch.  As at 31
December 2004 borrowings amounted to £35.9 million.
DIVIDEND

The dividends declared by the companies in AGCIT's investment universe have, in
aggregate,  been  in  excess  of  the  Managers'  expectations.   The  dividend
performance  from  AGCIT's portfolio investments has  also  been  satisfactory.
The  Board is therefore pleased to declare a second interim dividend of  5.255p
per  Income  Share.  This dividend will be paid on 25 February 2005  to  Income
Shareholders  on the register on 28 January 2005.  This payment  represents  an
increase  of 2.5% on the 5.125p paid in respect of the comparative period  last
year.   Taken  together  with the first interim dividend  of  3.15p  the  total
dividend for the year of 8.405p represents an increase of 2.5% on the dividends
paid in respect of 2003.

Over  the period since AGCIT's launch the level of dividend payments to  Income
Shareholders  has allowed the accumulation of revenue reserves.  Following  the
dividend  payment in respect of 2004, revenue reserves have risen to  £519,000,
representing  approximately  2.1p  per  Income  Share.   The  recent   dividend
performance  from  small  UK quoted companies has  been  strong,  with  a  high
proportion  of  companies  increasing dividends compared  with  relatively  few
reductions.  Such favourable conditions are unlikely to persist throughout  the
remaining seven years of AGCiT's life and it is probable that there will  be  a
period  during  which small UK quoted companies, in aggregate,  report  a  much
lower  level of dividend increase.  During such a period a number of  companies
are  likely  to  reduce their dividend payments.   In the  face  of  a  harsher
dividend  environment  revenue  reserves give  the  Board  greater  ability  to
maintain dividend payments.  It is the Board's aim to achieve a smooth trend of
dividends  over the Company's life and to use revenue reserves, if appropriate,
to  achieve this.  Any revenue reserves present at wind-up are, of course,  the
entitlement of the Income Shareholders.

SUMMARY AND OUTLOOK

The  UK  has experienced a good recovery over the last two years as the  global
economy  has  avoided  the  deflationary spiral feared  by  many  commentators.
Consistent  with  this,  the UK corporate sector appears  to  be  in  a  robust
position, with strong cash flows supportive of future dividend payments.  Small
companies  have benefited from this environment.  It would, however, be  unwise
for  investors to extrapolate the significant stockmarket returns enjoyed  over
the recent past into the future.

The  Board  is,  however, optimistic that the Managers will  continue  to  take
advantage  of  the many opportunities presented to them by the smaller  company
investment universe.


Alastair C. Dempster
Chairman
19 January 2005
The Statement of Total Return, summary Balance Sheet and summary Cash Flow
Statement are set out below: -

STATEMENT OF TOTAL RETURN
(Incorporating the Revenue Account 1)
(unaudited)
                                     2004                  2003
                             Revenue Capital   Total  Revenue  Capital   Total
                               £'000   £'000   £'000    £'000    £'000   £'000

Realised gains on sales            -  10,640  10,640        -      323     323
Unrealised gains                   -   7,123   7,123        -   17,611  17,611
                             -------  ------- -------  ------   ------  ------
Gains on investments               -  17,763  17,763        -   17,934  17,934

Dividend income                3,214       -   3,214    2,963        -   2,963
Interest income                   40       -      40       71        -      71
Other income                       9       -       9        1        -       1
Investment management fee       -199    -464    -663     -154     -361    -515
Other expenses                  -183       -    -183     -158        -    -158
                             -------  ------- -------  ------   ------  ------
Net return before finance      2,881  17,299  20,180    2,723   17,573  20,296
costs and taxation
Interest payable and similar    -650  -1,517  -2,167     -627   -1,463  -2,090
charges
                             -------  ------  ------   ------   ------  ------
Return on ordinary             2,231  15,782  18,013    2,096   16,110  18,206
activities before tax
Tax on ordinary activities         -       -       -        -        -       -
                             -------  ------- -------  ------   ------  ------
Return attributable to non-    2,231  15,782  18,013    2,096   16,110  18,206
equity shareholders
Dividends and other
appropriations
in respect of non-equity      -2,059     -67  -2,126   -2,009      -67  -2,076
shares
                             ------- ------- -------   ------   ------  ------
Transfer to reserves             172  15,715  15,887       87   16,043  16,130
                             ======= ======= =======   ======   ======  ======

Returns per non-equity
interest
Income Share                   9.11p      -    9.11p    8.56p      -     8.56p
                             ------- ------- -------   ------   -------  -------
Capital Share                      - 150.30p 150.30p        -   153.43p  153.43p
                             ------- ------- -------   ------   -------  -------

NOTES

1.The  revenue column of this statement is the profit and loss account  of  the
  Company.   All revenue and capital items in the above statement  derive  from
  continuing  operations.  No operations were acquired or discontinued  in  the
  period.

2.The  calculations of revenue return per Income Share are based on net revenue
  of  £2.231 million (2003: £2.096 million) and on 24.5 million Income  Shares.
  The calculations of capital return per Capital Share are based on net capital
  profits  of  £15.782 million (2003: profits of £16.110 million) and  on  10.5
  million Capital Shares.

SUMMARY BALANCE SHEET
(unaudited)

                                         31        31
                                   December  December
                                       2004      2003
                                      £'000     £'000

Securities officially listed on      95,062    74,199
the London Stock Exchange
                                   --------- ---------
Debtors                                 258       338
Cash at bank                              -         1
Creditors                            -3,030    -1,550
                                   --------- ---------
Net current liabilities              -2,772    -1,211
                                   --------- ---------
Total assets less current            92,290    72,988
liabilities

Creditors (amounts falling due      -34,235   -30,887
after more than one year)
                                   --------- ---------
Total net assets                     58,055    42,101
                                    =======   =======

Capital and reserves: non-equity
interests
  Called up share capital               350       350

Reserves:
 Capital redemption reserve              50        50
  Special reserve                    33,929    33,929
  Capital reserve - realised          4,922   (3,737)
  Capital reserve - unrealised       18,285    11,162
  Revenue reserve                       519       347
                                    -------   -------
                                     58,055    42,101
                                    =======   =======

Net Asset Values:
  - per Income Share                 68.48p    62.37p
  - per Capital Share               393.13p   255.42p


NOTE

The Company had 24.5m Income Shares and 10.5m Capital Shares in issue
as at 31 December 2004 and 31 December 2003.


SUMMARY CASH FLOW STATEMENT
(unaudited)


                                         2004        2003
                                        £'000       £'000
CASH FLOW STATEMENT
Net cash inflow from operating          2,498       2,374
activities
                                 ------------ ------------
Returns on investment and
servicing of finance
Non-equity dividends paid              -2,028      -1,978
Interest and other finance costs       -2,135      -2,080
paid
                                 ------------ ------------
Net cash (outflow) from returns
on investment and servicing of         -4,163      -4,058
finance
                                 ------------ ------------
Capital expenditure and
financial investment
Payments to acquire investments       -45,658     -20,868
Receipts from sales of                 42,298      24,548
investments
                                 ------------ ------------
Net cash (outflow)/inflow from         -3,360       3,680
capital
expenditure and financial
investment
                                 ------------ ------------
Net cash (outflow)/inflow before       -5,025       1,996
financing activities
                                 ------------ ------------
Financing activities
Loans drawn-down/(repaid)               3,339      -1,996
                                 ------------ ------------
Net cash inflow/(outflow) from          3,339      -1,996
financing activities
                                 ------------ ------------
Change in cash during the period       -1,686           -
                                      =======     =======
Reconciliation of change in cash
to movement in net debt
Change in cash during the period       -1,686           -
Loans (drawn-down)/repaid              -3,339       1,996
Amortisation of issue costs                -9         -10
during the period
                                 ------------ ------------
Change in net debt                     -5,034       1,986
Opening net debt                      -30,886     -32,872
                                 ------------ ------------
Closing net debt                      -35,920     -30,886
                                      =======     =======
NOTES
1.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 2003, 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.
 2.     It is anticipated that the Annual Report will be posted to shareholders
  on  24  January 2005.  Members of the public may obtain copies from Aberforth
  Partners,  14  Melville  Street, Edinburgh EH3 7NS or  from  its  website  at
  www.aberforth.co.uk.

CONTACT:     John Evans or David Ross          Aberforth Partners
0131 220 0733
Aberforth Partners, Secretaries - 19 January 2005
ANNOUNCEMENT ENDS