Final Results

F&C Capital & Income Inv Tst PLC
27 November 2007



Date:        27 November 2007


Contact:     Julian Cane
             F&C Management Limited
             020 7628 8000





                  F&C Capital and Income Investment Trust plc
                    Audited Preliminary Statement of Results
                      for the year ended 30 September 2007


HIGHLIGHTS

   •   Total dividend increase of 13.8%, the largest increase since launch;

   •   Over five years, the dividend has grown at a compound rate of 7.1%,
       well in excess of retail price inflation ;

   •   Net asset value ("NAV") per share up 3.9% compared to a rise in the
       Benchmark, the FTSE All-Share Index, of 8.7%;

   •   Long-term performance continues to be well ahead of benchmark.




SUMMARY OF RESULTS


Attributable to equity shareholders             30 September 2007       30 September 2006       % Change

Net assets                                               £204.13m                £200.76m           +1.7

Net asset value per share                                 258.76p                 249.03p           +3.9

Net revenue after tax                                      £6.60m                  £5.88m          +12.3

Return per share - revenue                                  8.25p                   7.25p          +13.8

Dividends per share                                         7.40p                   6.50p          +13.8

Share price                                               243.25p                 233.50p           +4.2




The Chairman, commenting on the results, said:

The Board is proposing a final dividend of 2.4 pence per share, which makes a
total increase year-on-year of 13.8%. This maintains the record of rising annual
dividends every year since launch. However, the gain in our net asset value 
("NAV") per share was a relatively disappointing 3.9% compared to a rise in our
Benchmark, the FTSE All-Share Index, of 8.7%. This is against a background of
fluctuating global stock markets which became increasingly volatile because of
the uncertainty of the impact of the US sub-prime mortgage crisis. Our long-term
performance continues to be well ahead of our benchmark.


Capital performance

During the summer and autumn the problems in the US sub-prime mortgage market
created very considerable uncertainty about the prospects for economic growth in
the US and elsewhere. The response of the US monetary authorities in reducing
interest rates and the injection of extra liquidity into the markets by the
European Central Bank seemed to restore confidence and stock markets showed more
resilience than many analysts predicted. Despite the run on Northern Rock, the
UK stock market recovered most of its lost ground and by the end of the year was
8.7% higher than a year earlier. The UK stock market benefited during the year
from reasonable levels of earnings and dividend growth and from continued
corporate activity in mergers and acquisitions.

Although the recent NAV performance of the Company has been somewhat
disappointing, as already stated our results over the longer term have been
good.  This was primarily because we were relatively defensively positioned when
the market was weak, but also kept a little ahead of the market when conditions
turned more positive.  Throughout this time, the investment approach used has
been to focus predominantly on UK companies with a higher than average dividend
yield and on their ability to increase the dividend significantly.

At the beginning of the year the Board reviewed this investment approach to
consider whether there was a convincing case for increasing our risk appetite
and therefore broadening the range of assets in our portfolio in pursuit of
higher returns. We concluded that our shareholders had actively chosen our
existing investment policy when they decided to buy shares in the Company and
that it would be wrong to change it.

Revenue and dividend

The Company has recorded a good increase in revenue and earnings over the year
allowing us to declare our largest increase in the dividend since launch in
1992.

Income from investments, net return before taxation, and net return to
shareholders all increased by more than 12% as many companies within the
portfolio reported strong levels of dividend growth.  Revenue return per share
increased by 13.8% as there was a positive impact from the share buy-back
programme.

The proposed final dividend of 2.4 pence per share brings the total dividend for
the year to 7.4 pence per share, an increase of 13.8%.  Over five years, the
dividend has grown at a compound rate of 7.1%, well in excess of retail price
inflation.

Share price performance and discount

The Directors remain committed to ensuring that the Company's share price does
not trade at a material discount to NAV and to this end the Company maintains an
active share buy-back programme.  The share price started the year at a discount
to NAV of 6.2% and finished at a discount of 6.0%, with an average discount over
the year of 5.6%.  In total 1.73 million shares, representing 2.1% of the shares
in issue, were bought at an average discount of 6.8%.

Gearing

Throughout the year, the Company borrowed money to invest in equities.  The
amounts borrowed were relatively modest at between £8m and £13m compared to
shareholders' equity of over £200m.  Over the year as a whole the impact of
gearing was marginal as the total return on the portfolio was very similar to
the cost of borrowing.

Shareholders

The Board continues to value the benefits of a diversified shareholder base and
is encouraged that there is a continued increase in the number of investors
attracted to the Company via the F&C savings schemes.  For historical reasons,
the shareholder base has been dominated by investors who first came to the
Company via Personal Equity Plans, but it is encouraging that there are now more
than 6,500 investors via the Child Trust Fund and a growing number via the
Individual Savings Account and the Private Investor Plan.

VAT

The Association of Investment Companies, of which the Company is a member, has
recently won an important case in the European Court of Justice for all
investment trust companies in the UK. It frees them in the future from VAT on
management fees, thus reducing their total costs.  The UK authorities have
accepted the ruling in principle and it is highly probable that the Company will
be able to recover at least some of the VAT suffered in the past on management
fees.  The Board is in discussion with the Manager and the Association of
Investment Companies on how to calculate and recover the amounts due to us. The
claims will also include VAT paid in earlier years by F&C Income Growth
Investment Trust ("FIGIT") before it merged with the Company in 2005. It is for
this reason FIGIT has been kept in legal being, albeit as a dormant company in
liquidation.  We are not yet able to quantify the size of our claims nor to know
when it will be paid.

Continuation Vote

There will be a triennial vote at this year's AGM on whether the Company should
continue.  Having consideration for the long-term record of capital performance
and dividend growth, the Board believes it is in shareholders' best interests to
continue and therefore encourages all shareholders to vote in favour of the
resolution to be put to the AGM.  Directors will be voting all their shares in
favour of this resolution.

Prospects

At the time of writing it is impossible to foresee the full impact on the real
economy of the turmoil in credit markets . If many banks have large losses and
are forced to restrict rates of further lending, future rates of growth of the
economy and of asset prices are likely to be reduced.  The evidence, especially
in the property sector, that this slowdown has started is getting stronger,
although employment levels and consumer spending remain fairly robust despite
high levels of personal indebtedness. There seems to be little impact on the
economies of China and India which are fast becoming locomotive global
economies. However, while interest rates are expected to decline over the next
year, the inflationary pressures resulting from the recent sharp rise in oil
prices will be a restraining influence on the Bank of England.  On balance the
risks to growth are increasing and the weakness of the dollar could add to
strains in the financial sector.

The current valuation of the UK stock market is being tested by these
uncertainties but current expectations for further growth in earnings and
dividends remain quite encouraging. We may be in for a rather bumpy ride in the
stock market but with dividends so far comfortably covered by earnings and the
prospect of reasonable rates of future income growth from the portfolio, the
outlook for the Company's own dividends remains positive.




Pen Kent
November 2007


INCOME STATEMENT

for the year ended 30 September                                              2007                                  2006
                                                      Revenue   Capital     Total     Revenue      Capital        Total
                                                       £'000s    £'000s    £'000s      £'000s       £'000s       £'000s

Gains on investments                                        -     8,734     8,734           -       22,769       22,769
Exchange gains/(losses)                                     -         1         1           1         (24)         (23)
Income                                                  7,947         -     7,947       7,088            -        7,088
Management fee                                          (513)     (513)   (1,026)       (472)        (472)        (944)
Other expenses                                          (508)       (4)     (512)       (476)         (17)        (493)

Net return before finance costs and taxation            6,926     8,218    15,144       6,141       22,256       28,397
Interest payable and similar charges                    (285)     (285)     (570)       (229)        (229)        (458)

Net return on ordinary activities before taxation
                                                        6,641     7,933    14,574       5,912       22,027       27,939
Taxation on ordinary activities                          (37)         -      (37)        (33)            -         (33)

Net return attributable to equity shareholders          6,604     7,933    14,537       5,879       22,027       27,906

Return per ordinary share - pence                        8.25      9.92     18.17        7.25        27.18        34.43



The total column is the profit and loss account of the Company.

All revenue and capital items in the above statement derive from continuing
operations.

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.




RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

                                                                                                                  Total
                                 Called-up      Share      Capital                                               equity
                                     share    premium   redemption       Special      Capital    Revenue  shareholders'
                                   capital    account      reserve       reserve     reserves    reserve          funds
For the year ended                  £'000s     £'000s       £'000s        £'000s       £'000s     £'000s         £'000s
30 September 2007

Balance brought forward at          20,548     76,334        3,154        10,313       85,648      4,758        200,755
1 October 2006
Dividends paid                           -          -            -             -            -    (6,882)        (6,882)
Purchase of ordinary shares              -          -            -       (4,279)            -          -        (4,279)
 held in treasury
Return attributable to equity            -          -            -             -        7,933      6,604         14,537
 shareholders

Balance carried forward at          20,548     76,334        3,154         6,034       93,581      4,480        204,131
30 September 2007



                                                                                                                  Total
                                 Called-up      Share      Capital                                               equity
                                     share    premium   redemption       Special      Capital    Revenue  shareholders'
                                   capital    account      reserve       reserve     reserves    reserve          funds
For the year ended                  £'000s     £'000s       £'000s        £'000s       £'000s     £'000s         £'000s
30 September 2006

Balance brought forward at          20,548     76,334        3,154        11,960       63,621      3,729        179,346 
1 October 2005
Dividends paid                           -          -            -             -            -    (4,850)        (4,850)
Purchase of ordinary shares              -          -            -       (1,647)            -          -        (1,647)
held in treasury
Return attributable to equity            -          -            -             -       22,027      5,879         27,906
 shareholders

Balance carried forward at          20,548     76,334        3,154        10,313       85,648      4,758        200,755
30 September 2006





BALANCE SHEET


At 30 September                                                                    2007                            2006
                                                               £'000s            £'000s        £'000s            £'000s
Fixed assets
Investments                                                                     213,328                         203,978

Current assets
Debtors                                                           875                           3,069
Cash at bank and short-term deposits                              346                           3,152
                                                                1,221                           6,221

Creditors: amounts falling due within one year
Loans                                                        (10,000)                         (8,000)
Other                                                           (418)                         (1,444)
                                                             (10,418)                         (9,444)
Net current liabilities                                                         (9,197)                         (3,223)
Net assets                                                                      204,131                         200,755
Capital and reserves
Called-up share capital                                                          20,548                          20,548
Share premium account                                                            76,334                          76,334
Capital redemption reserve                                                        3,154                           3,154
Special reserve                                                                   6,034                          10,313
Capital reserves                                                                 93,581                          85,648
Revenue reserve                                                                   4,480                           4,758
Total equity shareholders' funds                                                204,131                         200,755
Net asset value per ordinary share - pence                                       258.76                          249.03





CASH FLOW STATEMENT
for the year ended 30 September                                                 2007                               2006
                                                           £'000s             £'000s            £'000s           £'000s
Operating activities
Investment income received                                  7,824                                6,970
Interest received                                              61                                   70
Other revenue                                                  10                                   13
Fee paid to management company                              (868)                                (781)
Fees paid to Directors                                       (80)                                 (80)
Other cash payments                                         (571)                                (475)
Net cash inflow from operating activities                                      6,376                              5,717

Servicing of finance
Interest paid                                               (575)                                (455)
Net cash outflow from servicing of finance                                     (575)                              (455)

Taxation
Overseas tax paid                                            (41)                                 (21)
UK tax paid                                                   (3)                                    -
Total tax paid                                                                  (44)                               (21)

Financial investment
Purchase of equities and other investments               (52,115)                             (50,189)
Sales of equities and other investments                    52,872                               53,717
Other expenses                                                (5)                                 (19)
Net cash inflow from financial                                                   752                              3,509
  investment

Equity dividends paid                                                        (6,882)                            (4,850)

Net cash (outflow)/inflow before use of
    liquid resources and financing                                             (373)                              3,900

Management of liquid resources
(Increase)/ decrease in short-term deposits                                      (4)                              1,700

Financing
Sterling loans raised/(repaid)                              2,000                                (500)
Purchase of ordinary shares                               (4,434)                              (1,605)
Net cash outflow from financing                                              (2,434)                            (2,105)
(Decrease)/increase in cash                                                  (2,811)                              3,495

Reconciliation of net cash flow movement to
movement in net debt
(Decrease)/increase in cash                                                  (2,811)                              3,495
Increase/(decrease) in short-term deposits                                         4                            (1,700)
(Increase)/decrease in short-term loans                                      (2,000)                                500
Change in net debt resulting from cash
     flows                                                                   (4,807)                              2,295
Exchange movement on currency balances                                             1                               (24)
Movement in net debt during the period                                       (4,806)                              2,271
Net debt brought forward                                                     (4,848)                            (7,119)
Net debt carried forward                                                     (9,654)                            (4,848)


Notes


1    DIVIDENDS

The Directors recommend a final dividend in respect of the year ended 30
September 2007 of 2.40p (2007: 2.10p) per share, payable on 31 January 2008 to
all shareholders on the register at close of business on 4 January 2008. The
recommended final dividend is subject to approval by the shareholders at the
Annual General Meeting.

2    RETURN PER ORDINARY SHARE

Revenue return

The revenue return per share is based on the revenue return attributable to
equity shareholders of £6,604,000
(2006: £5,879,000).


Capital return

The capital return per share is based on the capital return attributable to
equity shareholders of £7,933,000
(2006: £22,027,000).


Both the revenue and capital returns per share are based on a weighted average
of 80,004,514 (2006: 81,045,828) ordinary shares in issue during the year.
Shares held in treasury have been excluded from the weighted average number of
shares in issue with effect from the date of purchase.

3    FINANCIAL INFORMATION

The above financial information comprises non-statutory accounts within the
meaning of section 240 of the Companies Act 1985.  The financial information for
the year ended 30 September 2006 has been extracted from published accounts for
the year ended 30 September 2006 that have been delivered to the Registrar of
Companies and on which the report of the auditors was unqualified.

4    ANNUAL GENERAL MEETING

The Annual General Meeting will be held on Monday 28 January 2008 at 11.30 am at
the offices of F&C Management

Limited at Exchange House, Primrose Street, London EC2A 2NY.

5    REPORT AND ACCOUNTS

The Report and Accounts will be posted to shareholders in early December 2007.
Copies may be obtained thereafter during normal business hours from the
Company's Registered Office, Exchange House, Primrose Street, London EC2A 2NY.







By order of the Board
F&C Management Limited, Secretary
27 November 2007


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