Final Results

ABERFORTH GEARED CAPITAL & INCOME TRUST plc

PRELIMINARY RESULTS

For the year-ended 31 December 2003


FEATURES

Total Returns

     Total Assets                                   34.4%

     Net Asset Value of Notional Package1           71.1%

     Net Asset Value of Capital Shares2          1,407.5%

     Total Dividend per Income Share                8.20p [+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
The  year  to December 2003 has seen most stockmarkets around the  world
generate positive returns, welcome relief after the negative returns  of
the  recent  past.   A common characteristic was the out-performance  by
small  over  larger  companies.  In the  UK  the  Hoare  Govett  Smaller
Companies Index (Excluding Investment Companies) (HGSC (XIC)) produced a
total return of 43.0% while the FTSE All-Share Index (representative  of
"larger companies") achieved a total return of 20.9%.

In  the  year under review, AGCiT generated a 34.4% return on its  total
assets.  The  effect  of  the gearing employed by  the  company  was  to
translate  this  into  a  71.1%  return on  Shareholders'  funds.  After
allowing for the 100p capital entitlement of the Income Shares  the  Net
Asset Value of a Capital Share has risen from 10.9p on 31 December  2002
to 164.32p on 31 December 2003.

The  relationship  between  the return  on  total  assets  and  that  to
Shareholders  illustrates  the effect of  the  capital  structure.   The
returns  in 2003 provide a timely example of how powerful the effect  of
the  gearing can be.  Total asset returns for the first quarter  were  -
2.6%,  consistent with the -6.1% decline in the HGSC  (XIC).   As  these
declines  followed  the negative returns recorded  in  2002,  the  first
quarter  was  sufficient to extinguish any value in the Capital  Shares.
However,  the 38.0% return on total assets since 31 March 2003 has  been
sufficient  to  restore  considerable value to  the  Capital  Shares  as
illustrated above.

Disappointingly, the history of equity markets suggests that  the  scale
of the year's return from both the HGSC (XIC) and on the total assets is
likely to prove a rare phenomenon.  Encouragement, however, can be taken
from  the  fact that, despite the strong performance in 2003, the  small
company  investment universe still stands at a valuation level  that  is
not out of line with its historic averages both on an absolute basis and
relative to larger companies.

DIVIDEND
The  dividends declared by the portfolio's 85 investments have,  by  and
large, been in line with the expectations of your Managers.  Your  Board
is  therefore pleased to be able to recommend a second interim  dividend
of  5.125p per Income Share.  It is intended that this dividend will  be
paid  on  26 February 2004 to Shareholders on the register on 30 January
2004.   This  payment represents a 2.5% increase over the 5.0p  dividend
paid   in   respect  of  the  comparative  period  last  year.    Income
Shareholders may recall that the Interim Dividend was also increased  by
2.5%; therefore the aggregate dividend increase for 2003 is also 2.5%.

YOUR BOARD
I was delighted to welcome John Richards to your Board as an Independent
Non  Executive  Director  on  29  October  2003.  John  is  a  Chartered
Accountant and is the Finance Director of The Miller Group, the  largest
private property development and house building company in the UK.  John
has  experience in a number of industries and I am sure he will  make  a
valuable contribution to your Board's deliberations.

OUTLOOK
Small  UK  quoted companies performed well in stockmarket  terms  during
2003,  not  only  by achieving strong absolute gains but  also  by  out-
performing  larger  companies.  However, the small company  universe  is
valued,  in price earnings terms, only 7.3% above the average  level  of
the  13 years of your Managers' investment history.  This valuation does
not seem unreasonable at a time when there is cause for greater optimism
about  the economic outlook than there was twelve months ago.   Dividend
cover  for smaller companies is also robust and at 2.6x is in line  with
its  longer  term  level.   As  a  consequence,  smaller  companies,  in
aggregate, appear well placed to increase their dividends.

Suitably  harnessed dividend growth can be a powerful driver to  capital
performance  from  equity  portfolios and, as  a  result,  can  generate
returns  consistent  with the requirements of both  Income  and  Capital
Shareholders in AGCiT.  Your Board is confident that the combination  of
your   Managers'  investment  philosophy  and  the  breadth   of   their
opportunity  base  provides  a  solid  platform  on  which  satisfactory
investment returns can be generated.


Alastair C Dempster
Chairman
21 January 2004
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)
                                                    7 September 2001
                                                         - to -
                                   2003             31 December 2002
                          Revenue Capital   Total Revenue  Capital   Total
                            £'000   £'000   £'000  £'000    £'000    £'000

Realised gains/(losses)
on sales                        -     323     323      -    (766)    (766)
Unrealised gains/(losses)       -  17,611  17,611      -  (6,449)  (6,449)
                         _________________________________________________
Gains/(losses) on
investments                     -  17,934  17,934      -  (7,215)  (7,215)
Dividend income             2,963       -   2,963  2,971      245    3,216
Interest income                71       -      71    154        -      154
Other income                    1       -       1     11        -       11
Investment management fee   (154)   (361)   (515)  (181)    (422)    (603)
Other expenses              (158)       -   (158)  (181)        -    (181)
                           ------  ------  ------ ------   ------   ------
Net return before finance
costs and taxation          2,723  17,573  20,296  2,774  (7,392)  (4,618)

Interest payable and
similar charges             (627) (1,463) (2,090)  (554)  (1,293)  (1,847)
                           ------  ------  ------ ------   ------   ------
Return on ordinary
activities before tax       2,096  16,110  18,206  2,220  (8,685)  (6,465)
Tax on ordinary
activities                      -       -       -      -        -        -
                          -------  ------  ------ ------   ------   ------
Return attributable to
non-equity shareholders     2,096  16,110  18,206  2,220  (8,685)  (6,465)

Dividends and other
appropriations in respect
of non-equity shares      (2,009)    (67) (2,076)(1,960)     (69)  (2,029)
                          -------  ------  ------ ------   ------   ------
Transfer to / (from)
reserves                       87  16,043  16,130    260  (8,754)  (8,494)
                          =======  ======  ====== ======   ======   ======
Returns per non-equity
interest
Income Share                8.56p       -   8.56p  9.06p        -    9.06p
                          -------  ------  ------ ------  -------  -------

Capital Share                   - 153.43p 153.43p      - (82.71p) (82.71p)
                          -------  ------  ------ ------  -------  -------



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 £2.096 million (2002: £2.220 million) and on 24.5 million
Income Shares.  The calculations of capital return per Capital Share are
based  on net capital profits of £16.110 million (2002: losses of £8.685
million) and on 10.5 million Capital Shares.
SUMMARY BALANCE SHEET
(unaudited)

                                         31        31
                                   December  December
                                       2003      2002
                                      £'000     £'000

Securities officially listed on
the London Stock Exchange            74,199    59,685
                                   -------- --------
Debtors                                 338       349
Cash at bank                              1         1
Creditors                           (1,550)   (1,258)
                                   --------  --------
Net current liabilities             (1,211)     (908)
                                   --------  --------
Total assets less current
liabilities                          72,988    58,777

Creditors (amounts falling due
after more than one year)          (30,887)  (32,873)
                                   --------  --------
Total net assets                     42,101    25,904
                                    =======   =======

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        (3,737)   (2,236)
  Capital reserve - unrealised       11,162   (6,449)
  Revenue reserve                       347       260
                                   --------  --------
                                     42,101    25,904
                                   ========  ========

Net Asset Values:
  - per Income Share                 62.37p    56.65p
  - per Capital Share               255.42p   114.52p


NOTE

The Company had 24.5m Income Shares and 10.5m Capital Shares in issue as
at 31 December 2003 and 31 December 2002.
SUMMARY CASH FLOW STATEMENT
(unaudited)

                                                 7 September
                                                        2001
                                                       - to-
                                         2003    31 December
                                                        2002
                                        £'000          £'000
CASH FLOW STATEMENT
Net cash inflow from operating
activities                              2,374          2,274
                                     --------       --------

Returns on investment and
servicing of finance
Non-equity dividends paid             (1,978)          (735)
Interest and other finance costs paid (2,080)        (1,840)
                                     --------       --------
Net cash outflow from returns on
investment
and servicing of finance              (4,058)        (2,575)
                                     --------       --------

Capital expenditure and
financial investment
Payments to acquire investments      (20,868)       (87,058)
Receipts from sales of investments     24,548         20,158

Net cash outflow from capital
expenditure                          --------       --------
and financial investment                3,680       (66,900)
                                     --------       --------
Net cash inflow/(outflow) before
financing activities                    1,996       (67,201)
                                     --------       --------

Financing activities
Issue of shares                             -         35,050
Redemption of shares                        -           (50)
Expenses paid in respect of share issue     -          (671)
Loans (repaid)/drawn down             (1,996)         32,873
                                     --------       --------
Net cash (outflow)/inflow from
financing activities                  (1,996)         67,202
                                     --------       --------
Change in cash during the period            -              1
                                     ========       ========
Reconciliation of change in cash
to movement in net debt
Change in cash during the period            -              1
Loans repaid/(drawn down)               1,996       (32,873)
Amortisation of issue costs
during the period                        (10)              -
                                     --------       --------

Change in net debt                      1,986       (32,872)
Net opening debt                     (32,872)              -
                                     --------       --------
Net closing debt                     (30,886)       (32,872)
                                     ========       ========


NOTES

1.    The  foregoing do not comprise Statutory Accounts (as  defined  in
section 240(5) of the Companies Act 1985) of the Company.

2.    It  is  anticipated  that the Annual  Report  will  be  posted  to
shareholders  on  26  January 2004.  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          Aberforth Partners          0131 220
0733

Aberforth Partners, Secretaries - 21 January 2004

ANNOUNCEMENT ENDS