Half-yearly report to 30 June 2009

ABERFORTH SMALLER COMPANIES TRUST plc

HALF YEARLY REPORT

For the Six Months ended 30 June 2009


Aberforth Smaller Companies Trust plc (ASCoT) invests only in small UK quoted
companies and is managed by Aberforth Partners LLP.

The investment objective of ASCoT is to achieve a net asset value total
return (with dividends reinvested) greater than on the Hoare Govett Smaller
Companies Index (Excluding Investment Companies) over the long term.

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

CHAIRMAN'S STATEMENT

For the six months to 30 June 2009, Aberforth Smaller Companies Trust plc
(ASCoT) achieved a net asset value total return of 20.8%, which compares with a
total return of 27.1% from the Hoare Govett Smaller Companies Index (Excluding
Investment Companies) (HGSC (XIC)), your Company's investment benchmark. The
FTSE All-Share Index, a representative of larger companies, registered a total
return of 0.8%. ASCoT, therefore, underperformed its benchmark during a period
when smaller companies outperformed larger companies.

Your Managers' Report provides greater insight into ASCoT's performance, as well
as that of small and large companies.

Stock markets remained challenging during the first three months of 2009.
Subsequently there has been a discernable return of investor appetite for equity
risk and this has benefitted ASCoT's portfolio in absolute terms. However, the
conservative positioning of the portfolio has resulted in an underperformance
relative to the benchmark index. Gearing at the fund level has been helpful in
partly bridging this shortfall. At 30 June 2009 gearing was 9%.

Shareholders will be aware that the Company's current borrowing facility was due
to expire at the end of October 2009. I am able to report that the Board has now
agreed terms on a new two year committed facility of £75 million with The Royal
Bank of Scotland, replacing the existing facility.

As anticipated in my January report, portfolio dividend income for the six
months to 30 June 2009 is 14% lower than that recognised in the corresponding
period last year. The extent of the impact of the economic downturn on portfolio
company dividends is proving every bit as severe as your Managers predicted.
Their report expands on this topic.

Nevertheless, your Board is pleased to declare a first interim dividend of 6.00
pence per share, which is the same as the corresponding payment last year.

In the past, ASCoT has either held or increased its annual dividend and, during its near
20 year life, it has accumulated significant revenue reserves. At 30 June 2009, and
after accounting for the first interim dividend, these amount to 31.1 pence per
share. As noted in my previous report, the extent of brought forward revenue
reserves gives your Board a degree of flexibility when considering future dividend
levels.

The first interim dividend will be paid on 21 August 2009 to Shareholders on the
register at the close of business on 31 July 2009. The last date for submission
of Forms of Election for those Shareholders wishing to participate in ASCoT's
Dividend Reinvestment Plan (DRiP) is 31 July 2009. Details of the DRiP are
available from Aberforth Partners LLP on request or from their website,
www.aberforth.co.uk.

At the Annual General Meeting on 4 March 2009, all resolutions proposed were
passed, including that which renewed the authority to buy-in up to 14.99% of
ASCoT's Ordinary Shares. No shares were purchased under this authority during
the six months to the end of June 2009.

Your Board is pleased to announce the appointment of David Jeffcoat as a non-
executive director with immediate effect. David retired as group finance
director and company secretary of Ultra Electronics Holdings plc in April 2009
and brings a wealth of commercial and financial experience.

I also wish to inform Shareholders that, having served on the Board for almost
15 years and as Chairman for 4 years, I shall be retiring from the Board at
the Annual General Meeting in March 2010, when Professor Paul Marsh will take
over the role of Chairman.

While the recent rally in small company share prices is welcome, trading
conditions remain challenging and if recovery is indeed underway its foundations
are as yet fragile.  The Board is, however, encouraged by the businesses that
your Managers have selected  for the portfolio.  These are typically well
financed and are at historically attractive valuations, characteristics that the
Board is convinced are in Shareholders' best interests over the medium to long
term and that justify the tactical gearing presently employed by ASCoT.


David R Shaw
Chairman
22 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
over ASCoT's history: 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 bankruptcy, 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

ASCoT's NAV total return over the first half was 20.8%, the third best half year
result over its history.  The gearing position, which built up from May last year
and which proved a drag on returns in 2008, made a positive contribution.
Nevertheless, ASCoT under-performed the 27.1% return of the HGSC (XIC).  The
following table and paragraphs explain this relative performance.

Performance Attribution Analysis
For the six months ended 30 June 2009
                                                     Basis
                                                    Points
Stock selection                                      (750)
Sector selection                                     (118)
                                                     -----
Attributable to the portfolio of investments         (868)
(calculated on a mid-price basis)
Impact of mid-price to bid price                       83
Cash/gearing                                          205
Management fee (net of the VAT refund)                (39)
Other expenses                                         (5)
                                                     -----
Total attribution based on bid-prices                (624)
                                                     -----
Note: 100 basis points = 1%. Total attribution is the
difference between the total return of the net asset value
and the Benchmark Index (i.e. net asset value = 20.83%;
Benchmark Index = 27.07%; difference is -6.24% being -624 basis points).



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 the
  benchmark's 27.1% return over the first half.

· The 100% club comprises the 55 companies in the benchmark 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 the
  benchmark's 27.1% return over the first half.

ASCoT's experience of these two groups was mixed.  It did well from the 100%
club.  Its nine holdings in this category made a significant contribution to the
strong absolute gains over the period, accounting for 44% of ASCoT's return.
However, exposure to the fallen stars was low: the five holdings in this group
were not large weights and together contributed just 9% of ASCoT's return.
Indeed, ASCoT's under-performance against the benchmark 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,
  ASCoT's portfolio at the start of the year was still biased towards companies
  with strong balance sheets: just under 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.

· In ASCoT's annual report, the concept of being `paid to wait' was
  emphasised:  reasonably high and sustainable dividend yields could provide some
  reward to investors for their faith in businesses during a downturn of uncertain
  duration.  Consistent with this, ASCoT entered 2009 with an average portfolio
  yield of 5.3%.  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.  ASCoT's portfolio has not escaped unscathed
but has fared relatively well: stripping out the beneficial effect of taking on
gearing, income generated by the portfolio over the twelve months to the end of
June fell by roughly 24% 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 31% of this year's income and
an 18% weighting in non dividend payers can still be accommodated.

Over its history, ASCoT 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 witnessed one of the strongest ever periods of performance from
small companies.  ASCoT participated and secured a good absolute return, which
exceeded that of large companies but lagged its benchmark.  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.  With the damage done, the question 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%.

We believe there are more attractive values on offer within the investment
universe, most relevantly within the portfolio, whose average current year PE
and yield are 8.9x and 3.5%.  Within this are five 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 benchmark is at its most
exaggerated in your Managers' experience.  This is reflected in the portfolio's
28% over-weight position in these cheaper `smaller small' companies.  A
reversion of this discount to its long run average would, others things being
equal, be positive for ASCoT's relative 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 2008   30 June 2008
Characteristics       ASCoT  Benchmark  ASCoT  Benchmark  ASCoT  Benchmark

Number of Companies   92      480        93      495       99      484
Weighted Average      £327m   £605m      £259m   £442m     £321m   £536m
Market Capitalisation
Price Earnings Ratio  7.0x    8.7x       6.0x    6.4x      9.2x    9.8x
(Historic)
Net Dividend Yield    4.3%    3.6%       5.3%    5.9%      3.7%    3.7%
(Historic)
Dividend Cover        3.3x    3.2x       3.1x    2.6x      2.9x    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 improved relative performance lies
in the valuation advantage that the portfolio presently enjoys, in part a result
of its bias to `smaller small' companies.  This valuation opportunity is the
primary motivation for ASCoT to retain its modestly geared position.

Aberforth Partners LLP
Managers
22 July 2009



INVESTMENT PORTFOLIO
Fifty Largest Investments as at 30 June 2009

                   Valuation  % of
No Company             £'000  Total  Business Activity

1  Greggs             16,730   3.4   Retailer of sandwiches, savouries and other bakery products
2  Robert Wiseman     15,089   3.0   Processing and distribution of milk
   Dairies
3  Domino Printing    14,384   2.9   Manufacture of industrial printing equipment
   Sciences
4  JD Sports Fashion  13,588   2.8   Retailer of sports and leisurewear
5  Bellway            13,553   2.7   Housebuilder
6  William Hill       12,786   2.6   Bookmaker
7  Beazley            12,535   2.5   Lloyds insurer
8  RPC Group          12,046   2.4   Manufacture of rigid plastic packaging
9  Huntsworth         11,785   2.4   International public relations
10 CSR                10,965   2.2   Fabless semiconductors
   Top Ten
   Investments       133,461  26.9

11 Evolution Group    10,840   2.2   Stockbroker and private client fund manager
12 Brown (N.) Group   10,573   2.1   Home shopping catalogue retailer
13 Phoenix IT Group   10,172   2.0   IT services
14 Spectris            9,494   1.9   Manufacture of precision
                                     instrumentation and controls
15 Dunelm Group        9,323   1.9   Homewares retailer
16 Halfords Group      9,162   1.8   Retailer of auto, leisure and cycling products
17 Hampson             8,851   1.8   Aerospace and automotive
   Industries
18 Collins Stewart     8,724   1.8   Stockbroker and private client fund manager
19 Headlam Group       8,608   1.7   Distributor of floorcoverings
20 Anite               8,516   1.7   Software
   Top Twenty
   Investments       227,724  45.8

21 BSS Group           8,383   1.7   Distribution of plumbing supplies & tools
22 Wilmington Group    8,219   1.6   B2B information and training
23 Holidaybreak        7,875   1.6   Holiday, travel and educational services
24 Vectura Group       7,748   1.6   Inhaled pharmaceuticals
25 Delta               7,680   1.5   Galvanising, manganese products and industrial supplies
26 Axis-Shield         7,413   1.5   in-vitro diagnostic testing
27 Keller Group        7,392   1.5   Ground and foundation engineer
28 Brewin Dolphin      7,269   1.5   Stockbroker and private client fund manager
   Holdings
29 Galliford Try       6,982   1.4   Housebuilding and construction services
30 Pace                6,839   1.4   Design and supply of set top boxes
   Top Thirty
   Investments       303,524  61.1

31 Intec Telecom       6,820   1.4   Software and related services
   Systems
32 Regus               6,807   1.4   Serviced offices
33 Microgen            6,795   1.4   Software and related services
34 Spirax-Sarco        6,555   1.3   Engineering
   Engineering
35 Kofax               6,529   1.3   Software and related services
36 RM                  6,460   1.3   IT services for schools
37 KCOM Group          6,404   1.3   Telecommunications services
38 Henderson Group     6,352   1.3   Investment manager
39 Venture             6,121   1.2   Oil exploration and development
   Production          6,121   1.2
40 Ark Therapeutics    6,085   1.2   Biotechnology
   Group
   Top Forty
   Investments       368,452  74.2

41 Micro Focus         6,074   1.2   Software
   International
42 ProStrakan Group    5,917   1.2   Speciality pharmaceutical business
43 Chaucer Holdings    5,866   1.2   Lloyds insurer
44 Biocompatibles      5,665   1.1   Drug-device technology
   International
45 Bodycote            5,369   1.1   Industrial heat treatment
46 Castings            5,295   1.1   Engineering
47 RPS Group           5,268   1.0   Consulting
48 office2office       5,186   1.0   Distribution of office products
49 Melrose Resources   5,110   1.0   Oil exploration and development
50 Interserve          4,772   1.0   Facilities, project & equipment services
   Top Fifty
   Investments       422,974  85.1
   Other
   Investments(42)   119,086  24.0
   Total
   Investments       542,060 109.1
   Net Liabilities   (45,189) (9.1)
                     ------- -----
   Total Net Assets  496,871 100.0


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 low risk
profile in the context of the investment trust industry. This belief arises from
the fact that the Company has a simple capital structure; invests only in small
UK quoted companies; has never been exposed to derivatives and does not
presently intend any such exposure; and outsources all the 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 and
operational/financial risk and gearing 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
David R Shaw
Chairman
22 July 2009




The Income Statement, Reconciliation of Movements in Shareholders'
Funds, Balance Sheet and the 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         -      (45,943)    (45,943)
Movement in fair value               -      123,024     123,024
                             ---------   ----------  ----------
Net gains on investments             -       77,081      77,081
Dividend income                 10,750          846      11,596
Interest income                      1            -           1
Other income                        96            -          96
Investment management fee         (619)      (1,031)     (1,650)
(Note 2)
Transaction costs                    -       (1,068)     (1,068)
Other expenses                    (218)           -        (218)
                             ---------   ----------  ----------
Return on ordinary              10,010       75,828      85,838
activities before finance costs
and tax
Finance costs                     (182)        (303)       (485)
                             ---------   ----------  ----------
                                     -
Return on ordinary               9,828       75,525      85,353
activities before tax
Tax on ordinary activities           -            -           -
                             ---------   ----------  ----------
                                     -
Return attributable to           9,828       75,525      85,353
equity shareholders
                              ========     ========    ========

Returns per Ordinary Share      10.14p       77.94p      88.08p
(Note 4)

On  22 July 2009, the Board declared a first interim dividend for the year ended 31 December
2009 of 6.00p per Ordinary Share (2008 - 6.00p)payable on 21 August 2009.

INCOME STATEMENT  (unaudited)
For the six months ended 30 June 2008
                               Revenue      Capital       Total
                                 £ 000        £ 000       £ 000

Realised net gains on sales          -        2,699       2,699
Movement in fair value               -     (109,932)   (109,932)
                             ---------   ----------  ----------
Net losses on investments            -     (107,233)   (107,233)
Dividend income                 12,455        5,047      17,502
Interest income                  1,144            -       1,144
Other income                        44            -          44
Investment management fee         (783)      (1,305)     (2,088)
(Note 2)
Transaction costs                    -       (1,883)     (1,883)
Other expenses                    (287)           -        (287)
                             ---------   ----------  ----------
Return on ordinary              12,573     (105,374)    (92,801)
activities before finance
costs and tax
Finance costs                      (51)         (86)       (137)
                             ---------   ----------  ----------
Return on ordinary              12,522     (105,460)    (92,938)
activities before tax
Tax on ordinary activities         (10)           -         (10)
                             ---------   ----------  ----------
Return attributable to          12,512     (105,460)    (92,948)
equity shareholders           ========     ========    ========

Returns per Ordinary Share      12.71p     (107.12p)    (94.41p)
(Note 4)


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

Realised net losses on sales         -       (9,027)     (9,027)
Movement in fair value               -     (297,703)   (297,703)
                             ---------   ----------  ----------
Net losses on investments            -     (306,730)   (306,730)
Dividend income                 23,684        7,387      31,071
Interest income                  1,152            -       1,152
Other income                        54            -          54
Investment management fee       (1,636)      (2,727)     (4,363)
(Note 2)
Transaction costs                    -       (2,880)     (2,880)
Other expenses                    (489)           -        (489)
                             ---------   ----------  ----------
Return on ordinary              22,765     (304,950)   (282,185)
activities before finance
costs and tax
Finance costs                     (526)        (877)     (1,403)
                             ---------   ----------  ----------
Return on ordinary              22,239     (305,827)   (283,588)
activities before tax
Tax on ordinary activities         (16)           -         (16)
                             ---------   ----------  ----------
Return attributable to          22,223     (305,827)   (283,604)
equity shareholders
                              ========     ========    ========

Returns per Ordinary Share      22.75p     (313.12p)   (290.37p)
(Note 4)



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
Balance as at
31 December 2008      969        19   186,192  198,224  38,711  424,115
Return on ordinary
activities after tax   -         -          -   75,525   9,828   85,353
Equity dividends paid  -         -          -        - (12,597) (12,597)
Purchase of            -         -          -        -       -        -
Ordinary Shares
                   -----    ------    -------  -------  ------  -------
Balance as at        969        19    186,192  273,749  35,942  496,871
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

Balance as at
31 December 2007      988        -    197,305  504,051  32,677  735,021
Return on ordinary
activities after        -        -          - (305,827) 22,223 (283,604)
taxation
Equity dividends paid   -        -          -        - (16,189) (16,189)
Purchase of           (19)      19    (11,113)       -       -  (11,113)
Ordinary Shares
                    -----   ------    -------  -------  ------  -------
Balance as at         969       19    186,192  198,224   38,711 424,115
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
Balance as at
31 December 2007      988        -    197,305  504,051  32,677  735,021
Return on ordinary
activities after        -        -          - (105,460) 12,512  (92,948)
taxation
Equity dividends paid   -        -          -        - (10,375) (10,375)
Purchase of           (19)      19    (11,113)       -       -  (11,113)
Ordinary Shares
                    -----   ------    -------  -------  ------  -------
Balance as at         969       19    186,192  398,591  34,814  620,585
30 June 2008
                    =====   ======    =======  =======  ======  =======



BALANCE SHEET
(unaudited)
As at 30 June 2009
                               30 June 31 December     30 June
                                  2009        2008        2008
                                 £ 000       £ 000       £ 000
Fixed assets:
Investments at fair value      542,060     464,427     657,282
through profit or loss
                            ----------   ---------   ---------
Current assets
Amounts due from brokers         3,745           -         380
Other debtors                    3,003       2,278       3,466
                            ----------   ---------   ---------

                                 6,748       2,278       3,846
                            ----------   ---------   ---------

Creditors (amounts falling
due within one year)
Bank debt facility            (50,582)     (41,174)    (35,885)
Amounts due to brokers         (1,279)      (1,297)     (3,812)
Other creditors                   (76)        (119)       (846)
                            ----------   ---------   ---------
                              (51,937)     (42,590)    (40,543)
                            ----------   ---------   ---------
Net current liabilities       (45,189)     (40,312)    (36,697)
                            ----------   ---------   ---------

Total net assets               496,871     424,115     620,585
                              ========    ========    ========

Capital and reserves:
equity interests
  Called up share capital          969         969         969
(Ordinary Shares)
Reserves:
  Capital redemption                19          19          19
reserve
  Special reserve              186,192     186,192     186,192
  Capital reserve              273,749     198,224     398,591
  Revenue reserve               35,942      38,711      34,814
                            ----------   ---------   ---------
                               496,871     424,115     620,585
                              ========    ========    ========

Net Asset Value per Share      512.77p     437.68p     640.44p
Share Price                    467.00p     351.25p     534.00p


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

 Net cash inflow from             9,076     19,187       31,520
 operating activities

 Taxation
 Taxation paid                        -        (10)         (16)

 Returns on investments and        (504)       (17)      (1,381)
 servicing of finance

 Capital expenditure and
 financial investment
 Payments to acquire            (89,971)  (166,745)    (260,020)
 investments
 Receipts from sales of          84,588    114,506      198,007
 investments
                              ---------  ---------  -----------
 Net cash outflow from capital
   expenditure and financial     (5,383)   (52,239)     (62,013)
 investment
                              ---------  ---------  -----------
                                  3,189    (33,079)     (31,890)
 Equity dividends paid          (12,597)   (10,375)     (16,189)
                              ---------  ---------  -----------
                                 (9,408)   (43,454)     (48,079)
 Financing
 Purchase of Ordinary Shares          -    (10,449)     (11,113)
                              ---------  ---------  -----------
 Change in cash during the       (9,408)   (53,903)     (59,192)
 period
                                =======    =======      =======

 Reconciliation of net
 return before finance costs
 and taxation to net cash
 inflow from operating
 activities
 Net return before finance       85,838    (92,801)    (282,185)
 costs and taxation
 (Gains)/losses on              (77,081)   107,233      306,730
 investments
 Transaction costs                1,068      1,883        2,880
 (Increase)/decrease in            (725)     2,888        4,076
 debtors
 (Decrease)/increase in             (24)       (16)          19
 creditors
                               --------   --------    ---------
 Net cash inflow from             9,076     19,187       31,520
 operating activities
                                =======    =======      =======

 NOTES TO THE FINANCIAL STATEMENTS

 1. ACCOUNTING STANDARDS
 The financial statements have been prepared under the historical cost
 convention, as modified to include the revaluation of investments and in
 accordance with applicable accounting standards and the AIC's Statement of
 Recommended Practice "Financial Statements of Investment Trust
 Companies and Venture Capital Trusts" issued in 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. INVESTMENT MANAGEMENT FEE

 For the six months ended 30 June     Revenue Capital   Total
 2009
                                        £ 000   £ 000   £ 000
 Investment management fee                619   1,031   1,650
 VAT refund                                 -       -       -
                                       ------  ------  ------
 Total for the six months ended           619   1,031   1,650
 30 June 2009
                                       ======  ======  ======

 For the six months ended 30 June     Revenue Capital   Total
 2008
                                       £ 000    £ 000   £ 000
 Investment management fee             1,048    1,748   2,796
 VAT refund                             (265)    (443)   (708)
                                      ------   ------  ------
 Total for the six months ended 30       783    1,305   2,088
 June 2008
                                      ======   ======  ======

 For the year ended 31 December      Revenue  Capital   Total
 2008
                                       £ 000    £ 000   £ 000
 Investment management fee             1,901    3,170   5,071
 VAT refund                             (265)    (443)   (708)
                                      ------   ------  ------
 Total for the year ended              1,636    2,727   4,363
 31 December 2008
                                      ======   ======  ======

 The VAT refund for the six months ended 30 June 2008 and year ended 31
 December 2008 above represents the repayment of VAT incurred in respect
 of management fees paid between 1991 and 1996.

 3. DIVIDENDS

                          Six months ended    Six months ended         Year ended
                              30 June 2009        30 June 2008   31 December 2008
                                      £000                £000               £000
 Amounts recognised as distributions to
 equity holders in the period:
 Second interim dividend of 10.5p for
 the year ended 31 December 2007         -              10,375             10,375
 First interim dividend of 6.0p for the
 year ended 31 December 2008             -                   -              5,814
 Second interim dividend of 13.0p for
 the year ended 31 December 2008    12,597                   -                  -
                                 ---------             -------           --------
                                    12,597              10,375             16,189
                                   =======             =======            =======

 The first interim dividend of 6.0p (2008 - 6.0p) will be paid on 21
 August 2009 to shareholders on the register on 31 July 2009.

 4. RETURNS PER ORDINARY SHARE
 The returns per Ordinary Share are based on:

                         Six months ended     Six months ended         Year ended
                             30 June 2009         30 June 2008   31 December 2008
                                     £000                 £000               £000
 Returns attributable to Ordinary
 Shareholders                      85,353              (92,948)          (283,604)

 Weighted average number of shares in
 issue during the period       96,900,000           98,448,535         97,670,037


 5. NET ASSET VALUES
 The net assets and the net asset value per share attributable to the Ordinary
 Shares at each period end are calculated in accordance with their
 entitlements in the Articles of Association and were as follows:

                                  30 June          31 December            30 June
                                     2009                 2008               2008
                                     £000                 £000               £000
 Net assets attributable          496,871              424,115            620,585

                                    Pence                Pence              Pence
 Net asset value attributable per
 Ordinary Share                    512.77               437.68             640.44

 As at 30 June 2009, the Company had 96,900,000 Ordinary Shares in issue
 (31 December 2008 and 30 June 2008 - same).


 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 ended  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 ended 30 June 2009 and 30 June 2008 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.


 The Half Yearly Report is expected to 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.

 CONTACT:   David Ross/Alistair Whyte, Aberforth Partners LLP (0131 220 0733)
 Aberforth Partners LLP, Secretaries
 22 July 2009

 ANNOUNCEMENT ENDS