Final Results

ABERFORTH GEARED CAPITAL & INCOME TRUST plc

PRELIMINARY RESULTS

FOR THE YEAR ENDED 31 DECEMBER 2007


FEATURES

Total Returns

   Total Assets                        -  7.7%

   Net Asset Value of Capital          - 20.0%
   Shares 1

   Total Dividend per Income             10.5p (+11.7%)
   Share


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


CHAIRMAN'S STATEMENT TO SHAREHOLDERS

INTRODUCTION

2007 proved a difficult year for AGCiT's chosen asset class - small UK quoted
companies.  The Hoare Govett Smaller Companies Index (Excluding Investment
Companies) (HGSC (XIC)), which best measures the performance of AGCiT's
investment universe, declined over the year by 8.3%.  The Total Asset Total
Return of AGCiT's invested portfolio was -7.7%.  The FTSE All-Share Index
recorded a positive return of 5.3% in 2007 marking the end of four years of
superior performance by small companies.  As Shareholders will be aware, AGCiT
is a highly geared Investment Trust and has long term committed borrowing
facilities that are consistently used close to their maximum level.

The effect of the leverage in the capital structure is to enhance returns to
Capital Shareholders in periods of strongly rising stockmarkets (such as those
enjoyed in 2003, 2004, 2005 and 2006) but also to reduce returns in falling
markets.  The evidence of this is seen in 2007 during which the Net Asset Value
of a Capital Share declined by 20.0% from 724.5p to 579.5p.

In each of the last three Annual Reports, your Board and Managers have cautioned
against extrapolating the previous year's significant returns.  It gives no
pleasure to be reporting on a year in which caution has proved to be correct.
Your Managers' report provides greater insight into AGCiT's performance as well
as that of small and larger companies.

DIVIDENDS

Your Board is pleased to declare a Second Interim Dividend of 6.7p per Income
Share, an increase of 13.6% on the 5.9p paid in respect of the comparative
period last year.  When taken together with the First Interim Dividend of 3.8p,
the total dividends for the year of 10.5p represent an increase over the
payments in 2006 of 11.7%.  The Second Interim Dividend will be paid on 21
February 2008 to Income Shareholders on the register at the close of business on
1 February 2008.  The "ex dividend" date will be 30 January 2008.

Several factors have been taken into consideration when determining the Second
Interim dividend.   Recent dividend growth from the portfolio constituents has
been robust.  As was the case in 2006 a small number of companies in the
portfolio have, for various reasons, paid a special dividend to their
shareholders.  These dividends provided a one off increase in revenue.  Your
Managers do not build any expectation of such dividends into their forecasts.

As explained in greater detail in the paragraph below, AGCiT has benefited from
the successful outcome of the VAT legal challenge.  In 2007 £202,000 has been
credited to revenue, representing approximately 0.82p per Income Share. Future
years' earnings per Income Share will be higher than would otherwise have been
the case as VAT is no longer charged on AGCiT's management fee.

After considering these factors, your Board has determined that the combination
of an 11.7% dividend increase, and the retention to revenue reserves of 1.07p
per Income Share best meets the objective of sustaining a smooth and rising
trend in dividend payments to Income Shareholders over the remaining life of
AGCiT.

VALUE ADDED TAX (VAT)

In 2004, the Association of Investment Companies (AIC), together with JPMorgan
Claverhouse Investment Trust plc (Claverhouse), brought a case against HM
Revenue and Customs (HMRC) to challenge the imposition of VAT on management fees
paid by investment trust companies.  The case was referred to the European Court
of Justice and its judgment was delivered in June 2007 supporting the
Claverhouse and AIC position.  HMRC announced its decision to withdraw its
appeal in November 2007. Your Board congratulates the AIC and Claverhouse on
this outcome. We are pleased that agreement has already been reached with your
managers that will secure recovery of all the VAT on investment management fees
paid by AGCiT since its formation subject to the appropriate refund of VAT by
HMRC to Aberforth Partners LLP. In this regard, AGCiT's net assets include
£672,000 being the estimated repayment of all VAT paid on investment management
fees since its inception on 18 December 2001 including all VAT previously offset
by your Managers.  The expected VAT recovery has been apportioned as it was
charged - 70% to the capital account (£470,000) and 30% to the revenue account
(£202,000).

SUMMARY AND OUTLOOK

I have noted in each of the last two years that cheap and abundant debt was
fuelling rises in asset prices and M&A activity, and that could not go on
forever.   However prescient these forecasts have been, it certainly makes it no
more pleasant to endure tougher times.  Investment history demonstrates that
just as good times end, so do tough times, though it is impossible to gauge
their length and depth.

AGCiT has a clearly stated investment strategy and policy.  In particular,
Shareholders should be aware that the level of borrowings has and will be
sustained close to the maximum available on a consistent basis.  Your Managers
have a value investment style that has served AGCiT well since its inception.
Recently "momentum" and "growth" styles have performed more strongly than value,
particularly so in the second six months of 2007.  Your Board accepts that no
one investment style will perform well in all economic or stockmarket conditions
but believes it is imperative to remain consistent so that when the environment
improves, as it surely will, the best possible investment performance may be
obtained.

                                                            Alastair C. Dempster
                                                                        Chairman
                                                                 24 January 2008


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

INCOME STATEMENT
For the year ended 31 December 2007
(unaudited)
                                      2007                   2006
                            Revenue Capital   Total Revenue Capital   Total
                              £'000   £'000    £'000  £'000   £'000   £'000

Realised gains on sales           -  19,654   19,654      -  16,404  16,404
Unrealised (losses)/gains         - (32,197) (32,197)     -  11,506  11,506
                             ------ -------  ------- ------ ------- -------
(Losses)/gains on                 - (12,543) (12,543)     -  27,910  27,910
investments
Dividend income               3,925     176    4,101  3,724     487   4,211
Interest income                   3       -        3      5       -       5
Other income                      -       -        -      2       -       2
Investment management fee      (163)   (382)    (545)  (293)   (685)   (978)
Other expenses                 (235)   (636)    (871)  (198)   (544)   (742)
                             ------ -------  ------- ------ ------- -------
Net return before finance     3,530 (13,385)  (9,855) 3,240  27,168  30,408
costs and taxation
Finance costs: interest        (695) (1,848)  (2,543)  (654)   (223)   (877)
                             ------ -------  ------- ------ ------- -------
                              2,835 (15,233) (12,398) 2,586  26,945  29,531
Finance costs on Income      (2,377)      -   (2,377)(2,178)      -  (2,178)
Shares
                             ------ -------  ------- ------ ------- -------
Return on ordinary              458 (15,233) (14,775)   408  26,945  27,353
activities before tax
Tax on ordinary activities        -       -        -      -       -       -
                             ------ -------  ------- ------ ------- -------
Return atributable to           458 (15,233) (14,775)   408  26,945  27,353
shareholders
                             ======  ======   ====== ======  ======  ======
Returns per share
Income Share                 11.57p       -   11.57p  10.55p      -   10.55p
                             ------ -------  ------- ------ ------- -------
Capital Share                     - (145.08p)(145.08p)   -   256.63p 256.63p
                             ------ -------  ------- ------ ------- -------

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 £2.835 million (2006 £2.586 million) and on 24.5 million Income Shares (2006: 24.5 million).  The
calculations of capital return per Capital Share are based on net capital losses of £15.233 million (2006: profits of
£26.945 million) and on 10.5 million Capital Shares (2006: 10.5 million).

3.      The 2007 investment management fee expense incorporates the expected repayment of all VAT paid on investment
management fees since the firm's inception, as set out in the Chairman's Statement. This expected repayment amounts to
£672,000 of which £202,000 has been credited to revenue and £470,000 has been credited to capital.



SUMMARY RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
For the year ended 31 December 2007
(unaudited)

                                           2007        2006
                                          £ 000       £ 000


Opening shareholders' funds              78,438      51,085
Total recognised losses and gains       (12,398)     29,531
before dividends
Dividends paid                           (2,377)     (2,178)
                                        -------     -------
Closing shareholders' funds              63,663      78,438
                                        -------     -------


The movements in the Capital reserve - realised,Capital reserve - unrealised, and Revenue reserve represent the profit
and loss of the Company.



BALANCE SHEET
As at 31 December 2007
(unaudited)
                                         31        31
                                   December  December
                                       2007      2006

                                      £'000     £'000
Fixed Assets: Investments
Investments at fair value through   119,420   133,087
profit or loss
                                    -------   -------
Current assets
Debtors                               1,029       286
Cash                                      -         1
                                    -------   -------
                                      1,029       287

Creditors (amounts falling due         (124)      (56)
within one year)
                                    -------   -------
Net current assets                      905       231
                                    -------   -------
Total assets less current           120,325   133,318
liabilities

Creditors (amounts falling due      (56,662)  (54,880)
after more than one year)
                                    -------   -------
TOTAL NET ASSETS                     63,663    78,438
                                    =======   =======

CAPITAL AND RESERVES: EQUITY
INTERESTS
  Called up share capital               105       105

Reserves:
 Capital redemption reserve              50        50
  Special reserve                     9,674     9,674
  Capital reserve - realised         41,776    24,587
  Capital reserve - unrealised        9,238    41,660
  Revenue reserve                     2,820     2,362
                                    -------   -------
TOTAL EQUITY                         63,663    78,438
                                    =======   =======

Net Asset Values:
  - per Income Share (Income         94.02p    86.77p
Shares are classified as
financial liabilities)
  - per Capital Share               620.27p   777.91p


NOTE
The Company had 24.5m Income Shares and 10.5m Capital Shares in issue as at 31 December 2007 and 31 December 2006.



SUMMARY CASH FLOW STATEMENT
For the year ended 31 December 2007
(unaudited)
                                         2007         2006
                                        £'000        £'000
CASH FLOW STATEMENT
Net cash inflow from operating          2,603        3,020
activities
                                      -------      -------
Returns on investment and
servicing of finance
Dividends paid                         (2,377)      (2,178)
Interest and other finance costs       (2,324)      (2,182)
paid
                                      -------      -------
Net cash outflow from returns
on investment and servicing of         (4,701)      (4,360)
finance
                                      -------      -------
Capital expenditure and
financial investments
Payments to acquire investments       (48,417)     (40,305)
Receipts from sales of                 48,966       46,281
investments
                                      -------      -------
Net cash inflow from capital              549        5,976
expenditure and financial
investments
                                       -------     -------
Net cash (outflow)/inflow before       (1,549)       4,636
financing activities
                                       -------     -------
Financing activities
Loans drawn down/(repaid)                1,548      (4,002)
                                       -------     -------
Net cash inflow/(outflow) from           1,548      (4,002)
financing activities
                                       -------     -------
Change in cash during the period            (1)        634
                                       =======     =======
Reconciliation of change in cash
to movement in net debt
Change in cash during the period           (1)          634
Loans (drawn down)/repaid              (1,548)        4,002
Change in fair valuation of              (225)        1,302
interest rate swap
Amortisation of issue costs                (9)          (9)
during the period
                                       -------      -------
Change in net debt                      (1,783)       5,929
Opening net debt                       (54,879)     (60,808)
                                       -------      -------
Closing net debt                       (56,662)     (54,879)
                                       =======      =======





NOTES
1. The financial statements have been prepared in accordance with UK generally accepted accounting practice (UK GAAP)
and the AIC's Statement of Recommended Practice " Financial Statements of Investment Trust Companies" issued in December
2005. The same accounting policies used for the year to 31 December 2006 have been applied in the year to 31 December
2007.

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 2006, 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 the week commencing 28 January 2008.
Members of the public may obtain copies from Aberforth Partners LLP, 14 Melville Street, Edinburgh EH3 7NS or from its
website at www.aberforth.co.uk.

Contact:     John Evans or David Ross - Aberforth Partners LLP - 0131 220 0733

Aberforth Partners LLP, Secretaries - 24 January 2008

ANNOUNCEMENT ENDS