Half-yearly report

ABERFORTH GEARED CAPITAL & INCOME TRUST plc

HALF YEARLY REPORT

For the six months ended 30 June 2009


FEATURES

Total Returns

   Total Assets                       + 15.0%

   Net Asset Value of Capital         + 79.8%
   Shares1

   First Interim Dividend per            5.9p (2008: 5.9p)
   Income Share

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

All data throughout this Half Yearly Report is to, or as at, 30 June 2009  as
applicable, unless otherwise stated.

CHAIRMAN'S STATEMENT TO SHAREHOLDERS

Introduction
For  the  six months to 30 June 2009, Aberforth Geared Capital & Income  Trust
plc  (AGCiT)  recorded a total return on total assets  of  15.0%.   The  Hoare
Govett  Smaller Companies Index (Excluding Investment Companies) (HGSC (XIC)),
which  is representative of AGCiT's opportunity base, recorded a total  return
of  27.1%  for  the same period.  The FTSE All-Share Index, representative  of
larger companies, showed a total return of 0.8%.

AGCiT  has  a  highly  geared structure with a policy of  maintaining  gearing
towards the maximum level over the long term.  The structure and gearing  were
disadvantageous in 2007 and 2008 when stockmarkets generated negative  returns
but  have assisted in creating value for Shareholders in the period of  rising
stockmarkets  enjoyed since March.  The net asset value  of  a  Capital  Share
(assuming  100p prior charge for the Income Shares) has risen  by  79.8%  from
91.94p at 31 December 2008 to 165.32p at 30 June 2009.

Borrowings and Interest Rate Swap
AGCiT's  borrowing consists of a long term facility of £34.3m.  This  facility
expires  on  31  December  2011. A supplementary overdraft  facility  of  £4m,
negotiated in 2004, expired on 31 May 2009 and has not been renewed.

AGCiT  has  an  interest  rate swap in place that was established  immediately
following  the  formation  of the Company.  The  intention  to  enter  such  a
transaction  was disclosed in the Company's prospectus.  The  purpose  of  the
transaction  was to reduce significantly the volatility in the  interest  cost
and thus create more certainty for the Company's net income.  The swap expires
on  30  September  2011. The current value of the swap is negative  £2,065,000
owing to the low level of prevailing interest rates in the UK compared to  the
rate  at  which  the swap was agreed.  This negative value is charged  against
Capital and is currently equivalent to -19.7p per Capital Share. It has always
been  the  intention  of  your  Board, ceteris paribus,  to  allow  this  swap
arrangement  to  run until its maturity, at which point it will  have  a  zero
value.

Dividends
I am pleased to announce an unchanged first interim dividend payable to Income
Shareholders of 5.9p.   As I suggested in my statement in January,  there  has
been  a reduction in the dividends paid by UK companies and AGCiT has not been
immune  from  this  trend.  Indeed, it is likely that dividends  from  the  UK
corporate  sector  will continue to decline throughout the remainder  of  this
year.  AGCiT's earnings per share for the first half of 2009 are sufficient to
cover the payment of the 5.9p first interim dividend described above.  For the
full  year, earnings are currently expected to be below the level of the 12.6p
total  dividend paid to Income Shareholders in 2008. Assuming current  revenue
estimates  prove accurate, your Board anticipates utilising a portion  of  the
revenue  reserves to maintain the dividend payment at the 2008 level.  Revenue
reserves,  after  accounting  for the first  interim  dividend  of  5.9p,  are
equivalent to 6.45p per Income Share.

The  first  interim  dividend  will  be paid  on  21  August  2009  to  Income
Shareholders on the register at 31 July 2009.  The "ex dividend" date will  be
29 July 2009.

Performance
While  AGCiT's total asset total return against the UK stockmarket in  general
has  been  satisfactory, the deviation from the return of the smaller  company
universe  deserves some explanation.  The rally in the HGSC(XIC)  since  March
2009  has  been dominated by significant returns from what might be considered
higher   risk  equities  of  which  the  majority  do  not  have  the   income
characteristics consistent with AGCiT's investment requirements. I  refer  you
to the Managers' report for a detailed analysis of this topic.

Two  factors give some comfort in regard to the most recent period.  First the
gearing employed by AGCiT has been assistive in generating returns in a rising
market.   Second,  and  with  respect to income,  analysis  prepared  by  your
Managers indicates that the income reduction experienced by AGCiT, as a result
of  lower dividends paid by its portfolio holdings, is considerably less  than
that experienced by its investment opportunity base in aggregate.

Outlook
It  is  pleasing to be able to report on an, as yet brief, period of  positive
returns  for  AGCiT.  The  recovery  in  stockmarkets  since  March  has  been
encouraged  by  an  improvement  in credit  conditions  and  by  the  apparent
willingness  of  shareholders  to  refinance companies  whose  balance  sheets
required support.  There are many more issues facing companies and markets and
the  path  of recovery seems unlikely to be smooth. However, I have confidence
in  your  Managers' ability to navigate the portfolio through these  difficult
times.

Alastair C. Dempster
Chairman
23 July 2009


MANAGERS' REPORT

Investment Background
It's  really  not supposed to be like this!  Entering 2009, financial  markets
remained  extraordinarily risk averse, with credit markets still under  stress
and  much of the developed world in recession.  Nevertheless, small UK  quoted
companies ended June having recorded their strongest half year relative return
in  eighteen  years: the HGSC (XIC) produced a total return  of  27.1%,  which
dwarfed  the  FTSE  All-Share's  0.8%.   In  an  international  context,   the
performance of UK large companies was relatively good, with most major markets
down by 10-15% in sterling terms.  Alongside small companies, emerging markets
were  a  bright spot, with Morgan Stanley's benchmark achieving a 19%  capital
gain in sterling terms.

The  rally in equity prices reflects a gradual relaxation in the extreme  risk
aversion  that  permeated financial markets in the wake of Lehman's  collapse.
This improvement in sentiment was in turn influenced by unprecedented monetary
easing  that  has  taken  interest rates in much of  the  developed  world  to
generational  lows  and  introduced  the reality  of  quantitative  easing  to
economies  outside  Japan.  The benefits of this trickled through  the  credit
market and gradually brought corporate bond and money market spreads back from
extended  levels.  At the same time, shareholders in highly indebted  publicly
quoted companies, faced with the alternative of insolvency, proved willing  to
fund  equity issues.  These developments allowed markets to reset their sights
from  an  imminent descent into Depression and thus breathed  life  back  into
those companies that had been priced to fail.

The  first half also witnessed the return of the `decoupling trade', which  is
founded upon the notion that emerging economies, China in particular, can take
up  the  strain  of  sustaining global demand as the US consumer  succumbs  to
recession.  This was the financial markets' last hope in the early  months  of
2008, when commodities were the principal beneficiaries, but was caught up  in
the all-consuming gloom of the second half.  Its revival in 2009, manifest  in
the  strong  performance from emerging markets and the revival in commodities,
reflects  optimism  that China's $600bn fiscal stimulus  package  might  prove
sufficient to keep its economy growing at close to the targeted 8% rate.

While  the  risk  of  a  return to the 1930s would  appear  to  have  receded,
developments in real economies around the world have hardly made for  pleasant
reading.  Industry has borne the brunt to date, with industrial production  in
the  UK  down by 12% year-on-year and in Japan by 31%.  However, the financial
markets  this  year have increasingly been focusing on the second  derivative:
the year-on-year declines two months earlier had been running at 13% in the UK
and  37%  in  Japan.  There is optimism, therefore, that, with the  destocking
cycle  having  played out, manufacturing may be through the  worst.   However,
while  these  may  indeed  prove  the `green shoots'  of  recovery,  anecdotal
evidence from companies remains mixed.  Moreover, consumer spending, a crucial
component  of  demand,  is being assailed by a combination  of  falling  house
prices,  rising unemployment, a resurgent oil price, and the inevitability  of
higher  taxes  to  pay  for the stimulus packages.  With upwards  pressure  on
savings ratios, it is tough to assess whether the declines in output have  yet
been sufficient to meet the adjusted levels of demand.


Performance Analysis
AGCiT's  total  asset total return over the first half was 15.0%.   Given  its
geared capital structure, a positive absolute return is crucial and it makes a
pleasant  change  from  the  problems  of  last  year.   The  performance  was
nevertheless some way behind the 27.1% return of the HGSC (XIC), which defines
AGCiT's opportunity base.  The following paragraphs explain this performance.

The  rally  enjoyed by the HGSC (XIC) was unusual not just  in  terms  of  its
strength.  It was powered by two groups of stocks: the "fallen stars" and  the
"100% club".

· The fallen stars are a collection of 40 companies that were relegated to
  the HGSC (XIC) on its annual rebalancing on 1 January.  Among these companies
  are familiar names, such as GKN and Rentokil, that once sat firmly in the FTSE
  100.  Often with substantial debt loads and large pension deficits, their share
  prices suffered horribly in 2008.  However, the renewed appetite for risk and
  the  feasibility  of rescue rights issues have resuscitated  many  of  these
  companies.  In aggregate, the fallen stars accounted for 25% of the total market
  capitalisation of the HGSC (XIC) at the start of the year and for 29% of its
  27.1% return over the first half.

· The  100% club comprises the 55 companies in the HGSC (XIC) whose  share
  prices at least doubled over the first half.  Though there is an overlap  of
  seven, most of these companies are much smaller than the fallen stars.  Their
  cumulative  weight within the HGSC (XIC) at the start of the  year  was  7%.
  However, given their price movements, they accounted for another 33% of  its
  27.1% return over the first half.

AGCiT's experience of these two groups was mixed.  It did reasonably well from
the  100%  club.   Its  four  holdings in this  category  made  a  significant
contribution to the strong absolute gains over the period, accounting for  28%
of  AGCiT's  return.  However, exposure to the fallen stars was low:  the  two
holdings in this group were not large weights and together contributed just 5%
of AGCiT's return.  Indeed, much of AGCiT's under-performance against the HGSC
(XIC)  can be attributed to its low weighting in the fallen stars.  There  are
two reasons for this under-weight position.

· Reflecting  the  uncertain credit environment and  impending  recession,
  AGCiT's portfolio at the start of the year was still biased towards companies
  with strong balance sheets: one third of the portfolio by weight was invested in
  businesses with net cash.  This cautious orientation was diametrically opposed
  to that of the fallen stars: their cumulative market capitalisation at the start
  of the year was £23bn, whereas their cumulative net debt was £50bn.  Moreover,
  substantial pension deficits, which your Managers treat as debt when valuing
  businesses, are a feature of many fallen stars.

· Given its investment objective, yield is always a fundamental focus  for
  AGCiT.   Confronted  at the start of the year with a downturn  of  uncertain
  duration,  your Managers considered the attractions of reasonably  high  and
  sustainable dividend yields to be particularly important.  Consistent with this,
  AGCiT entered 2009 with an average portfolio yield of 6.1%.  While six months
  is, in any case, too short a period for the benefits of such a strategy to play
  out, the stockmarket's focus was very much elsewhere: 22 of the 40 fallen stars
  cut their dividends over the past year, but these cutters actually out-performed
  the other 18 over the first half.

While  over  this  short period of six months the market has been  willing  to
overlook  dividend  cuts,  the  underlying  income  experience  has  not  been
propitious.  Dividends across the large company universe have been reduced  by
16%.  The fall across the HGSC (XIC) was 38%, almost one third of which can be
attributed to the fallen stars.  These declines compare unfavourably with  the
early  1990s  recession, when the aggregate dividends of large companies  were
more  or  less  unchanged, and small companies endured a drop of roughly  25%,
spread  over  a  three year period.  Clearly, those companies that  have  been
caught by both weaker trading and high gearing have little alternative but  to
cut  their  dividends.  However, others have cut for no good reason.   Fashion
and  weak  advice seem to be influencing the thinking of many  boards  to  the
detriment  of  long term returns to shareholders.  AGCiT's portfolio  has  not
escaped  unscathed  but  has fared relatively well: income  generated  by  the
portfolio over the twelve months to the end of June fell by roughly 15%  year-
on-year.   This  was  not  substantially  out  of  line  with  your  Managers'
forecasts.  The portfolio's income profile remains conservative: the  top  ten
contributors account for one third of this year's expected income.

Over  its  history, AGCiT has benefited disproportionately from M&A  activity.
In  this,  it  has  been  helped by your Managers'  preference  for  valuation
measures  based on enterprise values, which corporate acquirers tend  also  to
use,  over the simple price earnings ratio.  This approach has, however,  been
of  limited  assistance so far in 2009 given the dearth of  M&A  transactions:
only  seven deals have been completed within the HGSC (XIC), compared with  42
over the course of 2008.  Indeed, the stockmarket has swung decisively from de-
equitisation to re-equitisation, with rights issues, notably among the  fallen
stars, rather than acquisitions keeping the investment bankers busy.

Conclusion & Investment Outlook
The  first  half  of  2009  witnessed one of the  strongest  ever  periods  of
performance  from  small companies.  AGCiT participated  and  secured  a  good
absolute  return, which exceeded that of large companies but lagged  the  HGSC
(XIC).   With  the benefit of hindsight, the portfolio was too  conservatively
oriented  for  the risk rally.  Low exposure to the fallen stars  has  clearly
hampered  relative performance so far this year.  The question now confronting
your  Managers  is  whether  the fundamental developments  over  the  quarter,
including  the  tentative stabilisation in trading conditions and  substantial
equity issuance, justify the revaluations that these companies have enjoyed.

On  the whole the fallen stars remain plagued by the structural problems  that
originally  deterred your Managers.  Despite the rescue rights  issues,  these
companies  tend still to be highly indebted at a time of economic uncertainty.
Indeed, in the case of at least one, there is speculation that another  equity
issue  may  be  required.   Moreover, the often  substantial  defined  benefit
pension  schemes remain unaddressed.  These factors may nevertheless  be  out-
weighed by particularly low equity valuations.  However, it is not clear  that
this  is  the  case.  The rally, the extra shares in issue and  lower  profits
exacerbated by high gearing have combined to move the average PE of the fallen
stars for the current year up to 11x and the average yield down to 2%.

There are more attractive values on offer within the investment universe, most
relevantly within the portfolio, whose average current year PE and  yield  are
8.7x  and  4.7%.   Within this are two holdings among fallen  stars,  but  the
abundance of attractive value opportunities resides further down the scale  of
market  capitalisation, below the fallen stars and among the  `smaller  small'
companies.  With the FTSE 250 on a historic PE of 10x and the FTSE SmallCap on
7x, the discount for size within the HGSC (XIC) is at its most exaggerated  in
your  Managers'  experience.  This is reflected in the portfolio's  27%  over-
weight  position in these cheaper `smaller small' companies.  A  reversion  of
this  discount to its long run average should, others things being  equal,  be
positive  for AGCiT's performance.  Your Managers consider that this approach,
rather than a belated pursuit of the fallen stars, is consistent with how  the
portfolio has been managed successfully over the long term.  Indeed,  relative
performance  has  tended  to  lag in the initial phase  of  recovery  but  has
improved  as the initial euphoria abated, which proved the case most  recently
in 2003 and 2004.

                         30 June 2009   31 December    30 June 2008
                                            2008
Characteristics          AGCiT   HGSC   AGCiT   HGSC   AGCiT    HGSC
                                (XIC)          (XIC)           (XIC)
Number of Companies         63    480      67    495      76     484
Weighted Average Market  £303m  £605m   £249m  £442m   £317m   £536m
Capitalisation
Price Earnings Ratio      7.3x   8.7x    6.4x   6.4x    9.2x    9.8x
(Historic)
Net Dividend Yield        5.2%   3.6%    6.1%   5.9%    4.2%    3.7%
(Historic)
Dividend Cover            2.7x   3.2x    2.6x   2.6x    2.6x    2.8x
(Historic)

As  the table shows, the HGSC (XIC) ended June on a historic PE of 8.7x, which
is  up  from 6.4x at the year end.  At play here are both rising share  prices
and  falling  profits.   This combination was a feature  of  the  early  1990s
recession,  when small companies made strong absolute and relative gains  from
1990 to 1993, despite profits declining in each year.  The market is currently
flirting  with  the notion that recovery is imminent.  This is understandable:
recovery is unarguably closer and several indicators are giving cause for some
optimism.   However,  valuations  for some of  the  main  beneficiaries  of  a
cyclical upturn have already reached levels that discount a relatively  prompt
return  to  peak profitability.  This seems less plausible: the credit  bubble
was  an unsustainable boost to demand and, notwithstanding government stimulus
and  re-equitisation, the de-leveraging process will take years to  play  out.
Accordingly, the portfolio retains its bias towards businesses that have  been
temporarily  overlooked  in  the rally, typically those  with  strong  balance
sheets and good dividend yields.  The potential for further absolute gains and
improved  relative  performance  lies in  the  valuation  advantage  that  the
portfolio  presently enjoys, in part a result of its bias to  `smaller  small'
companies.

Aberforth Partners LLP
Managers
23 July 2009


INVESTMENT PORTFOLIO
Fifty Largest Investments as at 30 June 2009

                          Valuation    % of
No Company                    £'000   Total Business Activity

1  Greggs                     3,894    4.9  Retailer of sandwiches, savouries
                                            and other bakery products
2  Robert Wiseman Dairies     2,943    3.7  Processing and distribution of milk
3  JD Sports Fashion          2,677    3.4  Retailer of sports and leisurewear
4  Brown (N.) Group           2,548    3.2  Home shopping catalogue retailer
5  Domino Printing Sciences   2,478    3.2  Manufacture of industrial
                                            printing equipment
6  RPC Group                  2,463    3.2  Manufacture of rigid plastic packaging
7  Beazley                    2,389    3.0  Lloyds insurer
8  Spirax-Sarco Engineering   2,267    2.9  Engineering
9  Delta                      2,217    2.8  Galvanising, manganese products
                                            and industrial supplies
10 Evolution Group            1,988    2.5  Stockbroker and private client
                                            fund manager
   Top Ten Investments       25,864   32.8
11 Dunelm Group               1,918    2.5  Homewares retailer
12 Spectris                   1,874    2.4  Manufacture of precision
                                            instrumentation and controls
13 Halfords Group             1,868    2.4  Retailer of auto, leisure and
                                            cycling products
14 Headlam Group              1,825    2.3  Distributor of floorcoverings
15 Phoenix IT Group           1,662    2.1  IT services
16 Brewin Dolphin Holdings    1,658    2.1  Stockbroker and private client
                                            fund manager
17 Hampson Industries         1,613    2.0  Aerospace and automotive
18 Huntsworth                 1,607    2.0  International public relations
19 Holidaybreak               1,539    2.0  Holiday, travel and educational services
20 Keller Group               1,431    1.8  Ground and foundation engineer
   Top Twenty Investments    42,859   54.4
21 Henderson Group            1,383    1.8  Investment manager
22 BSS Group                  1,343    1.7  Distribution of plumbing supplies & tools
23 Collins Stewart            1,335    1.7  Stockbroker and private client
                                            fund manager
24 KCOM Group                 1,283    1.6  Telecommunications services
25 Go-Ahead Group             1,228    1.6  Transport services
26 Wilmington Group           1,224    1.6  B2B information and training
27 RM                         1,198    1.5  IT services for schools
28 Regus                      1,168    1.5  Serviced offices
29 Interserve                 1,139    1.4  Facilities, project & equipment
                                            services
30 office2office              1,129    1.4  Distribution of office products
   Top Thirty Investments    55,289   70.2
31 Microgen                   1,106    1.4  Software and related services
32 Chaucer Holdings           1,089    1.4  Lloyds insurer
33 Venture Production         1,080    1.4  Oil exploration and development
34 Smiths News                1,072    1.4  Newspaper distributor
35 Bodycote                   1,067    1.4  Industrial heat treatment
36 Micro Focus International    975    1.2  Software
37 UMECO                        961    1.2  Advance composite materials and
                                            supply chain management
38 Castings                     940    1.2  Engineering
39 Senior                       830    1.1  Automotive and aerospace
                                            engineering
40 Hansard Global               822    1.0  Life assurance
   Top Forty Investments     65,231   82.9
41 Game Group                   817    1.0  Retailer of pc and video games
42 Galliford Try                807    1.0  Housebuilding and construction services
43 Business Post                791    1.0  Mail services
44 Air Partner                  778    1.0  Aircraft broker
45 Low & Bonar                  768    1.0  Manufacture of industrial textiles
46 Anite                        767    1.0  Software
47 Dialight                     720    0.9  LED based lighting solutions
48 Charles Stanley Group        709    0.9  Stockbroker and private client
                                            fund manager
49 Future                       663    0.9  Special interest consumer publisher
50 e2v technologies             658    0.8  Manufacture of electronic
                                            components and sub-systems
   Top Fifty Investments     72,709   92.4
   Other Investments (13)     6,011    7.6
   Total Investments         78,720  100.0
   Net Liabilities          (58,335)
   Total Net Assets          20,385



INTERIM MANAGEMENT REPORT

Risks and Uncertainties

A review of the half year and the outlook for the Company can be found in the
Chairman's Statement and the Managers' Report. The Directors have established an
ongoing process for identifying, evaluating and managing the key risks faced by
the Company. 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 (further information on the Company's
gearing levels can be found in the Capital Structure section of this report).
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.

As the Company's investments consist of small UK quoted companies, the principal
risks facing the Company are market related and include market price, interest
rate, credit and liquidity risk. Additional risks faced by the Company include
investment objective, investment policy, share price discount, regulatory risk
and operational/financial risk. An explanation of these risks and how they are
managed can be found in the Directors' Report contained within the 2008 Annual
Report. These principal risks and uncertainties have not changed from those
disclosed in the 2008 Annual Report.

DIRECTORS' RESPONSIBILITY STATEMENT

The Directors confirm that, to the best of their knowledge:

(i) the condensed set of financial statements has been prepared in accordance
with the Statement `Half-yearly financial reports' issued by the UK Accounting
Standards Board; and

(ii) the half-yearly report includes a fair review of information required by:

 (a) DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication
 of important events during the first six months of the year and their impact
 on the financial statements together with a description of the principal risks
 and uncertainties for the remaining six months of the year; and

 (b) DTR 4.2.8R of the Disclosure and Transparency Rules, being disclosure of
 related party transactions and changes therein.

On behalf of the Board
Alastair C. Dempster
Chairman
23 July 2009


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

INCOME STATEMENT
(unaudited)
                              For the six months ended 30 June
                                            2009
                               Revenue      Capital       Total
                                 £ 000        £ 000       £ 000

Realised net losses on sales         -      (9,139)     (9,139)
Movement in fair value               -       17,769      17,769
                             ---------   ----------  ----------
                                     -
Net gains on investments             -        8,630       8,630
Dividend income                  2,034           74       2,108
Interest income                     27            -          27
Other income                        13            -          13
Investment management fee         (83)        (194)       (277)
Transaction costs                    -        (145)       (145)
Other expenses                   (122)            -       (122)
                             ---------   ----------  ----------
                                     -
Net return before finance        1,869        8,365      10,234
costs and tax
Finance costs:
Interest                         (303)        (706)     (1,009)
Change in fair valuation of          -           46          46
interest rate swap
                             ---------   ----------  ----------
                                     -
                                 1,566        7,705       9,271
Finance costs:
Dividends on Income Shares     (1,642)            -     (1,642)
classified as financial
liabilities (Note 2)
                             ---------   ----------  ----------
                                     -
Return on ordinary                (76)        7,705       7,629
activities before tax
Tax on ordinary activities           -            -           -
                             ---------   ----------  ----------
                                     -
Return attributable to            (76)        7,705       7,629
shareholders
                                ======       ======      ======

Returns per Share: (Note 3)
Income Share                     6.39p            -       6.39p
Capital Share                        -       73.38p      73.38p

DIVIDENDS
On 23 July 2009 the Board declared a first interim dividend for the year
ended 31 December 2009 of 5.9p per Income Share (2008 - 5.9p) payable on 21
August 2009.


INCOME STATEMENT
(unaudited)
                              For the six months ended 30 June
                                            2008
                               Revenue      Capital       Total
                                 £ 000        £ 000       £ 000
Realised net losses on sales         -        (489)       (489)
Movement in fair value               -     (17,085)    (17,085)
                             ---------   ----------  ----------
                                     -
Net losses on investments            -     (17,574)    (17,574)
Dividend income                  2,384          636       3,020
Interest income                     73            -          73
Other income                         9            -           9
Investment management fee        (151)        (353)       (504)
Transaction costs                    -        (231)       (231)
Other expenses                   (140)            -       (140)
                             ---------   ----------  ----------
                                     -
Net return before finance        2,175     (17,522)    (15,347)
costs and tax
Finance costs:
Interest                         (334)        (782)     (1,116)
Change in fair valuation of          -        1,007       1,007
interest rate swap
                             ---------   ----------  ----------
                                     -
                                 1,841     (17,297)    (15,456)
Finance costs:
Dividends on Income Shares     (1,642)            -     (1,642)
classified as financial
liabilities (Note 2)
                             ---------   ----------  ----------
                                     -
Return on ordinary                 199     (17,297)    (17,098)
activities before tax
Tax on ordinary activities         (2)            -         (2)
                             ---------   ----------  ----------
                                     -
Return attributable to             197     (17,297)    (17,100)
shareholders
                                ======       ======      ======

Returns per Share: (Note 3)
Income Share                     7.50p            -       7.50p
Capital Share                        -    (164.73p)   (164.73p)


INCOME STATEMENT
(unaudited)
                               For the year ended 31 December
                                            2008
                               Revenue      Capital       Total
                                 £ 000        £ 000       £ 000

Realised net losses on sales         -      (2,378)     (2,378)
Movement in fair value               -     (45,324)    (45,324)
                             ---------   ----------  ----------
                                     -
Net losses on investments            -     (47,702)    (47,702)
Dividend income                  4,482          848       5,330
Interest income                     89            -          89
Other income                        12            -          12
Investment management fee        (276)        (645)       (921)
Transaction costs                    -        (373)       (373)
Other expenses                   (268)            -       (268)
                             ---------   ----------  ----------
                                     -
Net return before finance        4,039     (47,872)    (43,833)
costs and tax
Finance costs:
Interest                         (668)      (1,560)     (2,228)
Change in fair valuation of          -      (1,757)     (1,757)
interest rate swap
                             ---------   ----------  ----------
                                     -
                                 3,371     (51,189)    (47,818)
Finance costs:
Dividends on Income Shares     (3,087)            -     (3,087)
classified as financial
liabilities (Note 2)
                             ---------   ----------  ----------
                                     -
Return on ordinary                 284     (51,189)    (50,905)
activities before tax
Tax on ordinary activities         (2)            -         (2)
                             ---------   ----------  ----------
                                     -
Return attributable to             282     (51,189)    (50,907)
shareholders
                                ======       ======      ======

Returns per Share: (Note 3)
Income Share                    13.75p            -      13.75p
Capital Share                        -    (487.51p)   (487.51p)


RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
unaudited)

For the six months ended 30 June 2009

                            Capital
                   Share redemption   Special   Capital  Revenue
                 capital    reserve   reserve   reserve  reserve    Total
                   £ 000      £ 000     £ 000     £ 000    £ 000    £ 000
Equity
shareholders         105         50     9,674      (175)   3,102   12,756
funds as at 31
December 2008
Return
attributable to        -          -         -     7,705      (76)   7,629
shareholders
                   -----      -----     -----     -----    -----    -----
Equity
shareholders         105         50     9,674     7,530    3,026   20,385
funds as at 30
June 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
Equity
shareholders         105         50     9,674    51,014    2,820   63,663
funds as at 31
December 2007
Return
attributable to        -          -         -   (51,189)     282  (50,907)
shareholders
                   -----      -----    ------     -----    -----   ------
Equity
shareholders         105         50     9,674      (175)   3,102   12,756
funds as at 31
December 2008
                   =====      =====     =====     =====    =====    =====


For the six months ended 30 June 2008

                            Capital
                   Share redemption   Special   Capital  Revenue
                 capital    reserve   reserve   reserve  reserve    Total
                   £ 000      £ 000     £ 000     £ 000    £ 000    £ 000
Equity
shareholders         105         50     9,674    51,014    2,820   63,663
funds as at 31
December 2007
Return
attributable to        -          -         -   (17,297)     197  (17,100)
shareholders
                   -----      -----     -----     -----    -----    -----
Equity
shareholders         105         50     9,674    33,717    3,017   46,563
funds as at 30
June 2008
                   =====       ====     =====     =====    =====    =====


BALANCE SHEET
(unaudited)
As at 30 June 2009
                                    30 June        31   30 June
                                       2009  December      2008
                                                 2008

                                      £'000     £'000     £'000
Fixed Assets: Investments
Investments at fair value through    78,720    70,930   105,217
profit or loss
                                    -------   -------   -------
Current assets
Amounts due from brokers                284         -        66
Interest rate swap                        -         -       653
Other debtors                           557       448       663
Cash at bank                             11         -         -
                                    -------   -------   -------
                                        852       448     1,382
                                    -------   -------   -------
Creditors (amounts falling due
within one year)
Bank overdraft                            -     (136)     (554)
Amounts due to brokers                    -      (16)     (628)
Other creditors                        (45)      (87)      (86)
                                    -------   -------   -------
                                       (45)     (239)   (1,268)
                                    -------   -------   -------
Net current assets/(liabilities)        807       209       114
                                    -------   -------   -------
Total assets less current            79,527    71,139   105,331
liabilities

Creditors (amounts falling due     (59,142)  (58,383)  (58,768)
after more than one year) (Note
5)
                                    -------   -------   -------
Total net assets                     20,385    12,756    46,563
                                     ======    ======    ======

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

Reserves:
Capital redemption reserve               50        50        50
Special reserve                       9,674     9,674     9,674
Capital reserve                       7,530     (175)    33,717
Revenue reserve                       3,026     3,102     3,017
                                    -------   -------   -------
Total equity                         20,385    12,756    46,563
                                     ======    ======    ======

Net Asset Values:
  - per Capital Share               187.31p   120.16p   449.28p
  - per Income Share (Income        102.93p   100.57p    97.51p
Shares are classified as
financial liabilities)

NOTE
The Company had 24.5m Income Shares and 10.5m Capital Shares
in issue as at 30 June 2009, 31 December 2008 and 30 June
2008.


CASH FLOW STATEMENT
(unaudited)
For the six months ended 30 June 2009
                                  6 months  6 months Year ended
                                     ended     ended
                                   30 June   30 June 31 December
                                      2009      2008       2008
                                     £'000     £'000      £'000

Net cash inflow from operating       1,609     2,831      4,850
activities
                                   -------   -------    -------
Taxation
Taxation paid                            -       (2)        (2)
                                   -------   -------    -------
Net cash outflow from taxation           -       (2)        (2)
                                   -------   -------    -------
Returns on investments and
servicing of finance
Interest and other finance costs   (1,015)   (1,096)    (2,222)
paid
Dividends paid                     (1,642)   (1,642)    (3,087)
                                   -------   -------    -------
Net cash outflow from returns
on investments and servicing of    (2,657)   (2,738)    (5,309)
finance
                                   -------   -------    -------
Capital expenditure and
financial investment
Payments to acquire investments   (12,256)  (19,952)   (31,381)
Receipts from sales of              12,651    16,852     31,751
investments
                                   -------   -------    -------
Net cash inflow/(outflow) from         395   (3,100)        370
capital
expenditure and financial
investment
                                   -------   -------    -------
Net cash outflow before              (653)   (3,009)       (91)
financing activities
                                   -------   -------    -------
Financing activities
Loans drawn down/(repaid)              800     2,455       (45)
                                   -------   -------    -------
Net cash inflow/(outflow) from         800     2,455       (45)
financing activities
                                   -------   -------    -------
Change in cash during the period       147     (554)      (136)
                                    ======    ======     ======
Reconciliation of net return
before finance costs and
taxation to net cash inflow from
operating activities
Net return before finance costs     10,234  (15,347)   (43,833)
and tax
Net (gains)/losses on              (8,630)    17,574     47,702
investments
Transaction costs                      145       231        373
(Increase)/decrease in debtors       (109)       366        581
(Decrease)/increase in creditors      (31)         7         27
                                   -------   -------    -------
Net cash inflow from operating       1,609     2,831      4,850
activities
                                    ======    ======     ======




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 ended 31 December 2008 have been
applied.


2.    FINANCE COSTS: DIVIDENDS ON INCOME SHARES CLASSIFIED  AS
FINANCIAL LIABILITIES

                                  Six months   Six months  Year ended
                                       ended        ended
                                 30 June 2009 30 June 2008 31 December
                                                                 2008
                                       £'000        £'000       £'000
Amounts recognised as
distributions to Income
Shareholders:
Second interim dividend for the            -        1,642       1,642
year ended 31 December 2007 of
6.7p paid on 21 February 2008
First interim dividend for the             -            -       1,445
year ended 31 December 2008 of
5.9p paid on 21 August 2008
Second interim dividend for the        1,642            -           -
year ended 31 December 2008 of
6.7p paid on 27 February 2009
                                      -------     -------     -------
                                        1,642       1,642       3,087
                                       ======      ======      ======

A  first interim dividend for the year ended 31 December  2009
of  5.9p will be paid on 21 August 2009 to Income Shareholders
on the register on 31 July 2009.


3.   RETURNS PER SHARE

                                  Six months   Six months  Year ended
                                       ended        ended
                                 30 June 2009 30 June 2008 31 December
                                                                 2008
                                       £'000        £'000       £'000
Return per Income Statement           £1,566       £1,841      £3,371
Less: Tax on ordinary activities           -         (£2)        (£2)
                                    ---------   ---------   ---------
Return attributable to Income         £1,566       £1,839      £3,369
Shareholders
                                     ========    ========    ========
Number of Income Shares in issue  24,500,000   24,500,000  24,500,000
during the period
Return per Income Share                6.39p        7.50p      13.75p

                                  Six months   Six months  Year ended
                                       ended        ended
                                 30 June 2009 30 June 2008 31 December
                                                                 2008
                                       £'000        £'000       £'000
Return attributable to Capital        £7,705    (£17,297)   (£51,189)
Shareholders
                                     ========      ======    ========
Number of Capital Shares in       10,500,000   10,500,000  10,500,000
issue during the period
Return per Capital Share               73.38p   (164.73p)   (487.51p)


4.   NET ASSET VALUE

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 the Capital Share net asset value on the basis of Income
Shares at 100p each and a reconciliation of Capital and Income share net
asset values in accordance with the Articles.

Net  Asset Value of Capital Shares (based on Income Shares  at
  100p)
                                       As at        As at       As at
                                 30 June 2009  31 December 30 June 2008
                                                     2008
                                       £'000        £'000       £'000
Total net assets                      20,385       12,756      46,563
Revenue reserve                      (3,026)      (3,102)     (3,017)
                                      -------     -------     -------
Net Asset Value of Capital            17,359        9,654      43,546
Shares
                                       ======      ======      ======
Number of Capital Shares          10,500,000   10,500,000  10,500,000
NAV per Capital Share (Income        165.32p       91.94p     414.72p
Shares at 100p)

Net Asset Value of Capital and Income Shares (Articles basis)
                                     Capital       Income       Total
                                      Shares       Shares
                                       £'000        £'000       £'000
Total net assets as at 30 June        20,385            -      20,385
2009
Revenue reserve                      (3,026)        3,026           -
Capital entitlement of Income               -      24,500      24,500
Shares at 31 March 2011
(valuation of Income Shares
disclosed within Creditors)
Adjustment to reflect capital          2,309      (2,309)           -
entitlement not yet transferred
to Income Shareholders in
accordance with Articles
                                      -------     -------     -------
Net assets per Articles as at 30      19,668       25,217      44,885
June 2009
                                       ======      ======      ======
Number of shares                   10,500,000  24,500,000
NAV per share (per Articles)          187.31p     102.93p


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

                                       As at        As at       As at
                                 30 June 2009  31 December 30 June 2008
                                                     2008
                                       £'000        £'000       £'000
Loan facility (Base Rate)              2,600        1,800       4,300
Loan facility (LIBOR)                 30,000       30,000      30,000
Less: unamortised issue costs           (23)         (28)        (32)
Income shares                         24,500       24,500      24,500
Interest rate swap                     2,065        2,111           -
                                      -------     -------     -------
                                      59,142       58,383      58,768
                                       ======      ======      ======


6.   FURTHER INFORMATION

The foregoing do not constitute 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). All information shown for the six months to 30 June 2009 is
unaudited.

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.

It is anticipated the Half Yearly Report will be posted to shareholders
during the week commencing 27 July 2009.  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.

Capital Structure
Summary
Aberforth Geared Capital & Income Trust plc has a split level capital
structure consisting of 24.5 million Income Shares and 10.5 million Capital
Shares. It has long-term bank debt facilities available amounting to £34.3
million, being equal to 100% of the netproceeds of the original issue of
shares. It is intended that the long-term facilities will be used close to
their full extent throughout the life of the Company. The effect of this
structure is to increase the yield and to provide the potential for a growing
level of dividend income for Income Shareholders, and the potential for geared
capital appreciation for the Capital Shareholders.

Income Shares
All net income earned by the Company is attributable to the Income Shares. It
is the intention to distribute substantially the whole of the net income each
year in accordance with the objective to provide a high dividend yield. The
Directors aim to increase dividends over the planned life of the Company.
Dividends will be paid half yearly. The Income Shares were issued with an
initial capital entitlement upon a winding up of 50.00p per Income Share which
increases daily, from the date of issue, on a straight line basis until 31
March 2011 at such a rate as will give a final entitlement of 100.00p. In the
event that the Company is not wound up on the planned winding up date of 31
December 2011, the capital entitlement of the Income Shares will continue at a
value of 100.00p. The Income Shares will rank after repayment of the bank debt
and any other liabilities of the Company but before any payment on the Capital
Shares. In the event that the value of the investment portfolio falls
significantly, then it is possible that the Income Shares will have no
underlying value at the planned winding up date. The Board has concluded that
the amount of £24.5 million raised through the issue of the Income Shares
falls under the definition of a financial liability within Financial Reporting
Standard 25. Consequently, this amount has been recorded as a long-term
liability in the Company's Balance Sheet. As at 30 June 2009, the middle
market price of an Income Share was 107p.

Capital Shares
The Capital Shares have a return that is entirely in the form of capital and
they have no entitlement to income. Capital Shareholders will be entitled to
all the Company's remaining net assets at the planned winding up date after
providing for payment in full of the final capital entitlement of 100.00p per
Income Share. There are two methods that can be used to calculate a Net Asset
Value (NAV) of a Capital Share. The detailed calculation is shown in note 4 on
page 19. The difference between the two relates to the NAV assumed for the
Income Shares. As described above the Income Shares have an initial capital
entitlement of 50.00p which increases daily, on a straight line basis, to
100.00p on 31 March 2011. The NAV of the Income Shares on 30 June 2009 was
102.93p (includes all revenue reserves). The NAV of a Capital Share on 30 June
2009 is therefore 187.31p, or alternatively 165.32p if one assumes a capital
entitlement of 100.00p for an Income Share. In the event that the value of the
investment portfolio falls sufficiently, then it is possible that the Capital
Shares will have no underlying value at the planned winding up date of 31
December 2011. As at 30 June 2009, the middle market price of a Capital Share
was 175p.

Bank Facilities
The Company seeks to enhance the returns to its shareholders by utilising
gearing in the form of bank borrowing. Accordingly, it has bank debt
facilities with Bank of Scotland under which it is entitled to draw down an
aggregate principal amount of up to £34.3 million. Of the facilities, £30
million is linked to LIBOR and has been matched with a swap transaction, which
has the effect of fixing the total interest cost at 6.47% (2008: 6.57%) for
the period to 30 September 2011. The swap transaction is not included in the
Company's investment portfolio. However, changes in its fair value are
recognised on the Income Statement and Balance Sheet. The fair value of the
interest rate swap based on market values at 30 June 2009 was negative
£2,065,000 (2008: positive £653,000). The balance of the debt facilities,
which amount to £4.3 million, has a variable rate of interest linked to bank
base rate and is utilised as required. The bank overdraft facility, which
amounted to £4.0 million, expired on 31 May 2009 and was not renewed. The long-
term bank debt amounting to £34.3 million is repayable on 31 December 2011,
although it may be repayable earlier if an event of default occurs. The long-
term debt facilities agreement contains, amongst others, a financial covenant
(tested annually at 31 December) that the ratio of the amount outstanding
under the long-term debt facilities and all other creditors (excluding Income
Shares and any liabilities arising from the interest rate swap) to the
aggregate value of all Permitted Investments shall not be greater than 0.7:1.
As at 30 June 2009 the ratio of long-term debt facilities and other creditors
(excluding Income Shares and any liabilities arising from the interest rate
swap) to the value of Permitted Investments was 0.4:1.

Interest on the bank debt is charged 70% to the capital reserves of the
Company and 30% to the revenue account of the Company. Changes to the fair
value of the interest rate swap are allocated 100% to Capital Shareholders.

Duration
The Directors are obliged by the Company's Articles of Association to convene
an Extraordinary General Meeting of the Company between 1 October 2011 and 31
December 2011 (both dates inclusive) at which an Ordinary Resolution will be
proposed to wind up the Company voluntarily on the planned winding up date -
being 31 December 2011. In the event that such resolution or any other
resolution to wind up, reconstruct or reorganise the Company is not passed at
such a meeting or any subsequent meeting, the Directors are obliged to convene
an Extraordinary General Meeting for the same date (or the immediately
preceding business day) in each succeeding year at which a resolution to wind
up the Company on the next anniversary of the planned winding up date will be
proposed. Income Shareholders shall have no vote on such resolutions. A
winding up will enable Capital Shareholders to realise the residual capital
value of their investment after the payment of the creditors, liquidation
costs and the capital and dividend entitlements of the Income Shareholders.
The Directors shall not be required to convene such an Extraordinary General
Meeting if a resolution shall previously have been passed to reconstruct or
reorganise the Company. In the event that such a resolution for reconstruction
is put to the Company at any time in the period after 1 April 2011, then
Income Shareholders shall have no vote on such resolution if the proposals
contained in it would result in the Income Shareholders receiving not less
than 100p in cash (in addition to any entitlement to undistributed revenue
reserve) for each Income Share held (whether or not an option may be given to
elect to receive such entitlement otherwise than in cash).

Please note that the above is a summary only. Full details of the rights
attached to the Capital Shares and Income Shares are set out in the Company's
Articles of Association.

Contact:     John Evans or David Ross - Aberforth Partners LLP - 0131 220
0733
Aberforth Partners LLP, Secretaries - 23 July 2009
ANNOUNCEMENT ENDS