Final Results

ABERFORTH GEARED CAPITAL & INCOME TRUST plc

PRELIMINARY RESULTS

For the year-ended 31 December 2005


FEATURES

Total Returns

Total Assets                             + 24.9%

Net Asset Value of Notional Package(1)   + 35.8%

Net Asset Value of Capital Shares(2)     + 58.1%

Total Dividend per Income Share            8.62p  (+2.6%)


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

I am pleased to report that 2005 has been a good year for Aberforth Geared Capital
&  Income Trust plc (AGCiT).  In a repeat of 2004 the UK stockmarket has generated
a  strong positive return and the return for AGCiT's chosen asset class - small UK
quoted companies - has been relatively good.

Specifically the FTSE All-Share Index registered a total return of 22.0%  and  the
Hoare  Govett Smaller Companies Index (Excluding Investment Companies) achieved  a
total return of 27.8%.

Against  this background, AGCiT achieved a total return on total assets of  24.9%.
Given this level of absolute return on total assets, the gearing employed by AGCiT
has  worked  beneficially and the return on Shareholders' Funds  has  been  35.8%.
After allowance has been made for the 100p final capital entitlement of the Income
Shares,  the  net  asset  value of a Capital Share has risen  from  296.0p  on  31
December  2004  (restated as a consequence of changes in accounting practices)  to
467.9p, an increase of 58.1%.

DIVIDEND

The  dividend  performance from AGCiT's investments has been satisfactory  in  the
period  under review.  Your Board is pleased to declare a second interim  dividend
of  5.39p  per Income Share, an increase of 2.6% on the 5.255p paid in respect  of
the  comparative period last year.  Taken together with the first interim dividend
of  3.23p, the total dividend for the year of 8.62p represents an increase of 2.6%
on the dividends paid in respect of 2004.

Following  the dividend payment relating to 2005, revenue reserves will  represent
approximately 2.6p per Income Share.  A feature of small UK quoted companies since
AGCiT's  inception  has  been  that the aggregate dividend  performance  has  been
robust. This has been beneficial to AGCiT and has been one of the factors allowing
the consistent increase in dividend payments to AGCiT's Income Shareholders whilst
simultaneously  building a healthy revenue reserve.  It is your Board's  intention
to  attempt  to  sustain the smooth trend of dividend payments over the  Company's
life  and  to  use revenue reserves, if necessary, to achieve this.   Any  revenue
reserves  present  at the date of wind-up are, of course, the entitlement  of  the
Income Shareholders.

ACCOUNTING CHANGES

There  is  an  unusually  large number of changes to the presentation  of  AGCiT's
accounts  this  year owing to the introduction of new Accounting Standards.  These
are  detailed in the paragraphs below. It is the Board's view that the changes  do
nothing   to   simplify  AGCiT's  financial  statements,  their  presentation   or
interpretation.

The  Company  is a split capital investment trust. In the Director's  opinion  the
Income  Shares and the Capital Shares are the true equity of the company,  despite
the  fact  that the Income Shares must now be disclosed as "financial liabilities"
and  included as creditors. Shareholders should be reassured that no changes  will
be  made  to the investment portfolio or investment strategy as a result of  these
accounting changes.

AGCiT  continues  to prepare its financial statements under UK Generally  Accepted
Accounting  Practice (GAAP) and the AITC's Statement of Recommended Practice.   As
intimated  in  the Interim Statement in July, your Board, after due  consideration
and  advice, has resolved not to adopt International Accounting Standards at  this
time.  Your Board will keep the position under review.

However,  these financial statements do incorporate a number of necessary  changes
to  accounting practices in the form of Financial Reporting Standards (FRS) 21, 25
and  26.   Adoption of these standards has required a change in the treatment  and
presentation of dividends, the basis of valuing investments in the portfolio,  the
reclassification of the Income Shares to "financial liabilities" and  finally  the
treatment and presentation of the interest rate swap.

The  Board has concluded that the amount of £24.5m raised through the issue of the
Income  Shares falls under the definition of a financial liability within FRS  25.
Consequently  this  amount has been recorded as a long-term  liability.  This  re-
classification  is  reflected on the Balance Sheet but has no effect  on  the  net
asset  attributable to either the Income Shares or Capital Shares.  The change  in
the  basis  of  valuing investments involves valuing the investment  portfolio  at
"bid" rather than "mid" prices, which has reduced ACGiT's portfolio value by about
0.7%.  Changes in the fair valuation of the interest rate swap now are  recognised
on  the  Income  Statement and Balance Sheet.  Further information  regarding  the
changes is provided in the notes to these financial statements.

INVESTMENT MANAGERS

On  1 December 2005, the assets and business of Aberforth Partners transferred  to
Aberforth  Partners LLP, a limited liability partnership.  As a  consequence,  the
investment  management, administration and company secretarial services previously
provided by Aberforth Partners are now provided by Aberforth Partners LLP.   There
was no change to the terms of these services as a result.

SUMMARY AND OUTLOOK

2005 marked the third consecutive year of high absolute returns from AGCiT and its
chosen  asset  class.  It would be unusual if the scale of returns  enjoyed  these
past  three  years were repeated in 2006.  Indeed there are reasons  for  caution.
The  UK  economy is faltering at a time when seemingly cheap and abundant debt  is
causing  asset  prices to rise and is fuelling M&A activity.  There are,  however,
also  reasons to be sanguine.  The vast majority of UK listed companies has strong
balance  sheets,  good  cash flows and is earning high  real  returns  on  capital
employed.  In turn, these are the very features that are driving the debt  fuelled
M&A,  which,  in  part,  has supported the recent attractive  returns  enjoyed  by
investors.

Whatever  the  future holds, your Board is confident that your Managers  have  the
skill and experience to serve Shareholders well.


Alastair C. Dempster
Chairman
18 January 2006


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

INCOME STATEMENT
For the year ended 31 December 2005
(unaudited)
                                        2005              2004 (Restated)
                                Revenue Capital Total Revenue Capital  Total

                                 £'000  £'000   £'000   £'000  £'000   £'000

Realised gains on sales              -  7,627   7,627      -  10,886  10,886
Unrealised gains                     - 12,497  12,497      -   7,281   7,281
                                ------ ------  ------ ------  ------  ------
Gains on investments                 - 20,124  20,124      -  18,167  18,167
Dividend income                  3,324    761   4,085  3,214       -   3,214
Interest income                     22      -      22     40       -      40
Other income                         1      -       1      9       -       9
Investment management fee        (245)   (571)   (816)  (199)   (464)   (663)
Other expenses                   (201)   (338)   (539)  (183)   (623)   (806)
                                ------ ------  ------ ------  ------  ------
Net return before finance costs  2,901 19,976  22,877  2,881  17,080  19,961
and taxation
Finance costs: interest          (675) (1,926) (2,601)  (650) (1,656) (2,306)
                                ------ ------  ------ ------  ------  ------
                                 2,226 18,050  20,276  2,231  15,424  17,655
Finance costs on Income Shares  (2,078)     -  (2,078)(2,028)      -  (2,028)
                                ------ ------  ------ ------  ------  ------
Return on ordinary activities      148 18,050  18,198    203  15,424  15,627
before tax
Tax on ordinary activities           -      -       -      -       -       -
                                ------ ------  ------ ------  ------  ------
Return attributable to equity      148 18,050  18,198    203  15,424  15,627
shareholders
                                ====== ======  ====== ======  ======  ======
Returns per share
Income Share                      9.09p     -    9.09p  9.11p      -    9.11p
                                ------ ------  ------ ------  ------  ------
Capital Share                        - 171.90p 171.90p     -  146.90p 146.90p
                                ------ ------  ------ ------  ------  ------


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 Trust  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.

  The  various changes in accounting policies, as disclosed in the Notes at  the
  end  of  this announcement, have had a cumulative effect of decreasing  return
  attributable to equity shareholders by £2,386,000 to £15,627,000 for the  year
  ended 31 December 2004.

2.The  calculations of revenue return per Income Share are based on net revenue
  on  ordinary activities before distributions of £2.226 million (2004:  £2.231
  million)  and  on  24.5 million Income Shares.  The calculations  of  capital
  return  per Capital Share are based on net capital profits of £18.050 million
  (2004: profits of £15.424 million) and on 10.5 million Capital Shares.


BALANCE SHEET
As at 31 December 2005
(unaudited)

                                            31       31
                                      December December
                                          2005     2004
                                              (restated)
                                         £'000    £'000
Fixed Assets: Investments
Investments at fair value through      111,640   94,186
profit or loss
                                      --------  -------

Current assets
Debtors                                    328      258

Creditors (amounts falling due within     (708)  (1,743)
one year)
                                      --------  -------
Net current liabilities                  (380)   (1,485)
                                      --------  -------

Total assets less current liabilities  111,260   92,701

Creditors (amounts falling due after   (60,175) (59,814)
more than one year)
                                      --------  -------
TOTAL NET ASSETS                        51,085   32,887
                                       =======  =======

CAPITAL AND RESERVES
  Called up share capital                  105      105

Reserves:
 Capital redemption reserve                 50       50
  Special reserve                        9,674    9,674
  Capital reserve - realised            10,450    4,545
  Capital reserve - unrealised          28,852   16,707
  Revenue reserve                        1,954    1,806
                                       -------  -------
TOTAL EQUITY                            51,085   32,887
                                       =======  =======

Net Asset Values:
  - per Income Share (Income Shares      79.72p   73.73p
    are classified as financial
    liabilities)
  - per Capital Share                   533.84p  374.50p


NOTE

The Company had 24.5m Income Shares and 10.5m Capital Shares
in issue as at 31 December 2005 and 31 December 2004.


RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
For the year ended 31 December 2005
(unaudited)
                                           2005        2004
                                                  (restated)
                                          £'000       £'000

Opening shareholder'' funds as           58,055      42,101
previously reported
Prior year adjustments                  (25,168)    (24,841)
                                     ----------   ---------
Opening shareholder'' funds              32,887      17,260
(restated)
Return attributable to equity            18,198      15,627
shareholders
                                     ----------   ---------
Closing equity shareholders' funds       51,085      32,887
                                     ----------   ---------


SUMMARY CASH FLOW STATEMENT
For the Year ended 31 December 2005
(unaudited)
                                           2005        2004
                                          £'000       £'000
CASH FLOW STATEMENT
Net cash inflow from operating            3,094       2,498
activities
                                     ----------  ----------
Returns on investment and servicing
of finance
Dividends paid                           (2,078)     (2,028)
Interest and other finance costs         (2,239)     (2,135)
paid
                                     ----------  ----------
Net cash outflow from returns
on investment and servicing of           (4,317)     (4,163)
finance
                                     ----------  ----------
Capital expenditure and financial
investment
Payments to acquire investments         (25,268)    (45,658)
Receipts from sales of investments       27,543      42,298
                                     ----------  ----------
Net cash inflow/(outflow) from            2,275      (3,360)
capital
expenditure and financial investment
                                     ----------  ----------
Net cash inflow/(outflow) before          1,052      (5,025)
financing activities
                                     ----------  ----------
Financing activities
Loans drawn-down                              -       3,339
                                     ----------  ----------
Net cash inflow from                          -       3,339
financing activities
                                     ----------  ----------
Change in cash during the period          1,052      (1,686)
                                     ==========  ==========
Reconciliation of change in cash
to movement in net debt
Change in cash during the period          1,052      (1,686)
Loans  drawn-down                             -      (3,339)
Change in fair valuation of interest       (352)       (139)
rate swap
Amortisation of issue costs during           (9)         (9)
the period
                                     ----------  ----------
Change in net debt                          691      (5,173)
Opening net debt                        (61,499)    (56,326)
                                     ----------  ----------
Closing net debt                        (60,808)    (61,499)
                                     ==========  ==========
NOTES
1.    The  financial statements have been prepared in accordance with  applicable
accounting standards and the AITC's Statement of Recommended Practice " Financial
Statements  of  Investment  Trust  Companies". Comparatives  have  been  restated
following  the adoption of FRS 21 "Events after the Balance Sheet Date",  FRS  25
"Financial   Instruments:  Disclosure  &  Presentation"  and  FRS  26  `Financial
Instruments: Measurement'.

The  adoption  of  FRS 21 has resulted in a change in accounting  for  dividends.
Dividends  payable  by  the Company are now recorded as a liability  following  a
dividend  declaration by the Board and therefore the second interim  dividend  of
5.39p  per  share,  declared today, has not been recorded as a liability  of  the
Company  as  at 31 December 2005 (2004: 5.255p per share). In previous  financial
statements, dividends declared were recognised in respect of the period to  which
they  related. This change in accounting policy has increased Shareholders' funds
by £1,287,000 as at 31 December 2004.

The  adoption  of  FRS 26 has resulted in a change in the basis of  valuation  of
investments.  Under  FRS 26, the Company's investments have been  categorised  as
"financial  assets  at  fair value through profit or loss" and  therefore  quoted
investments  are  now valued at bid prices. Previously, quoted  investments  were
valued  at  middle  market prices. This change in accounting policy  has  reduced
Shareholders' funds by £876,000 as at 31 December 2004.

The  adoption  of  FRS  25 resulted in the classification  of  Income  Shares  as
"financial liabilities" and as a consequence the fair value at tome of  issue  of
£24.5million  has been accounted for within creditors. Dividends paid  to  Income
Shareholders are now treated as finance costs and appear within this category  on
the Income Statement.

As a further consequence of investments being categorised as "financial assets at
fair  value  through  profit  or loss", the gains on investments  on  the  Income
Statement  has  been  restated  and  now reflects  the  movements  in  unrealised
appreciation,  based  on  bid  prices.  Transaction  costs  incidental   to   the
acquisition or disposal of investments which are now treated as a capital expense
and  included  within expenses under the capital column of the Income  Statement.
Previously  such transaction costs were included within book cost of  investments
and  proceeds from sales. This change in accounting policy has reduced the  total
return  attributable  to  Shareholders for the year ended  31  December  2004  by
£219,000 as at 31 December 2004.

FRS 26 requires derivatives to be measured at fair value. The Company's interest
rate swap is not a designated as a cash flow hedge and changes in its fair value
are  recognised  in the Income Statement. In previous financial  statements  the
fair  value  of  derivatives was not included on the  Balance  Sheet  or  Income
Statement.  The  change  in accounting policy for derivatives  has  reduced  the
return  attributable  to  Capital Shares for the year to  31  December  2004  by
£139,000 and by £1,079,000 as at 31 December 2004.

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 2004, 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 23  January  2006.  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 of Aberforth Partners LLP on 0131 220 0733
Aberforth Partners LLP, Secretaries - 18 January 2006
ANNOUNCEMENT ENDS