Half-yearly report

ABERFORTH GEARED CAPITAL & INCOME TRUST plc

INTERIM RESULTS

For the six months to 30 June 2007

FEATURES

Total Assets Total Return                   +7.6%
Net Asset Value of Capital Shares (Note 1)  +10.3%
First Interim Dividend                      3.8p [+8.6%]

Note 1: The asset performance of the Capital Shares assumes that
Income Shares have a capital entitlement of 100p each.


CHAIRMAN'S STATEMENT TO SHAREHOLDERS

RESULTS REVIEW

For the six months to 30 June 2007, Aberforth Geared Capital &
Income  Trust  plc (AGCiT) achieved a total  return  on  total
assets of 7.6%.

The  FTSE All-Share Index showed a total return of 7.6%  while
the Hoare Govett Smaller Companies Index (Excluding Investment
Companies)  (HGSC  (XIC)), representative of  AGCiT's  smaller
company opportunity base, generated a total return of 4.6%.

The  Net Asset Value of a Capital Share has risen by 10.3%  to
799.1p, assuming the 100p prior charge of the Income Shares is
deducted.

The  positive  returns  from the UK equity  market  have  thus
allowed  AGCiT's geared structure to work to  the  benefit  of
all Shareholders. However,it is worthy of note  that  the  six
months under review have been the first half year period since
the second half of 2004 in which the HGSC (XIC) has recorded a
poorer    performance   than   the   FTSE   All-Share   Index,
representative of larger companies.

Your Board is pleased to announce a first interim dividend  of
3.80p  per Income Share which represents an increase  of  8.6%
over  the  3.50p paid in respect of the equivalent  period  in
2006.   This  rate of increase broadly reflects the underlying
growth in dividends from AGCiT's portfolio.  The dividend will
be  paid  on  23  August 2007 to Income  Shareholders  on  the
register on 27 July 2007.

In  2004,  the  Association  of  Investment  Companies  (AIC),
together  with  JPMorgan  Claverhouse  Investment  Trust   plc
(Claverhouse), brought a case against HM Revenue  and  Customs
(HMRC)   to  challenge  the  current  imposition  of  VAT   on
management fees paid by investment trust companies.  The  case
was referred to the European Court of Justice and its judgment
was  delivered on 28 June 2007 supporting the Claverhouse  and
AIC  position.   Whilst  we  await  HMRC's  response  to  this
judgment,   your   Managers  have  submitted   the   necessary
protective  claims such that, dependent on the final  outcome,
AGCiT  will  receive  a refund of all VAT paid  on  Investment
Management  fees since the inception of the Company  including
all  VAT previously offset by your Managers. We will endeavour
to  keep  Shareholders updated with any developments  in  this
matter.

Over  the  last  few  years the Alternative Investment  Market
(AIM)  has  attracted  a large number  of  companies  and  has
enabled many to raise funds. Although AGCiT has not actually
purchased investments in AIM quoted companies it has continued
to hold shares in investee companies that have chosen to move
from the "Full List" to AIM so as to avoid being a forced
seller of otherwise sound investments. The trend of companies
moving to AIM shows some signs of reversing with a number of
companies  now seeing merit in moving to the "Full List" from
AIM. Your Board believes AGCiT should be able to invest in
such  companies before they actually become fully listed,  but
after  they  have committed to the move, and has so authorised
your  Managers.  It is unlikely such investments will  form  a
material  part of AGCiT's portfolio but they may  nevertheless
prove rewarding.

The  six  months under review have seen a volatile performance
from the UK equity market which recovered from a sharp setback
in  February only to be challenged by a sudden and significant
rise  in  bond yields on a global basis during May  and  June.
There has subsequently been a noticeable change in stockmarket
leadership in the UK with the more highly rated FTSE 250  "Mid
Cap" Index underperforming the FTSE 100 Index.

It  remains to be seen how the effects of rising funding costs
permeate  equity markets.  The immediate effect  has  been  to
create  a  greater  level  of  uncertainty.   However,  I   am
reassured that in the past your Managers' value discipline has
served   Shareholders  well  in  more  uncertain   stockmarket
environments  and  recent relative performance  would  confirm
that this continues to be the case.

                                           Alastair C Dempster
                                                      Chairman
                                                  18 July 2007


MANAGERS' REPORT

INVESTMENT BACKGROUND

The strong returns enjoyed by the HGSC (XIC) in the first half
were  shared  by many stockmarkets around the world.   Indeed,
several indices, including the FTSE All-Share, S&P500 and DAX,
recorded  new all-time highs.  These were achieved  despite  a
general environment of tightening monetary conditions in  many
major   economies  and  two  specific  bouts  of   nervousness
reminiscent of the risk aversion in the middle of 2006.

The  first  wobble  came  in late February,  when  many  asset
classes - including commodities, low grade corporate debt  and
equities   -   endured  sharp  falls.    While   the   Chinese
stockmarket's 8% one day drop made the headlines, the  climate
of  greater  risk  aversion appeared to  stem  from  fears  of
contagion from the US sub-prime mortgage fiasco and from a  5%
rise  in  the  yen against the dollar, which was perceived  to
jeopardise  the  viability of leveraged investment  strategies
known  as  "carry trades".  However, with the dollar  actually
rising  by  3.5%  over the first half as a  whole,  the  yen's
strength proved short-lived and the immediate effects  of  the
sub-prime meltdown appeared to have been contained.

Duly  emboldened,  markets regained lost ground  and  advanced
further  before encountering a second challenge in June,  when
large  rises  in  US government bond yields  prompted  similar
reactions in other bond markets including that of the UK.   In
contrast to events a year earlier, the cause did not appear to
be  nervousness about uncontrolled inflation: CPI data in  the
US  proved  unexciting  and the gap between  conventional  and
index linked yields did not expand significantly.  Rather, the
issue seemed to be a perception that real economic growth  was
more  resilient than previously thought and that interest rate
reductions  later  this  year  were  therefore  less   likely.
Apparently  confirming the lower probability of  a  recession,
the  increases in longer bond yields removed the inversion  in
the  US  yield  curve, so that long term bond yields  now  sit
above short term yields.

In  the UK, monetary conditions also tightened over the  first
half  as the Bank of England increased interest rates and gilt
yields  moved up sharply. However, in contrast to the US,  the
yield  curve  has  remained  inverted,  in  response  to   the
continued appetite of pension funds for longer dated gilts and
to  the  likelihood of further interest rate rises this  year.
Expectation of such rises reflects concerns about inflationary
pressures,  which in April necessitated an explanatory  letter
from  Mervyn King to Gordon Brown.  These concerns are fuelled
by  double  digit  broad money supply growth and  a  confident
consumer  sector  that, unlike that of the  US,  continues  to
revel in annual house price appreciation of more than 10%.

INVESTMENT PERFORMANCE

As  described by the Chairman, despite some weakness in  June,
small  companies  enjoyed  another  period  of  good  absolute
returns,  with the HGSC (XIC) rising by 4.6% in  total  return
terms.   AGCiT succeeded in out-performing with a 7.6%  return
at  the  total  assets level.  In this,  it  was  aided  by  a
reversal  of  fortune with regard to sector  selection.   Last
year,  this  made  a  substantial  negative  contribution   to
relative  performance since AGCiT was heavily under-weight  in
four  sectors - Oil & Gas Producers, Mining, Real  Estate  and
General  Financials - that performed strongly.   In  contrast,
thus  far  in 2007, conviction in these under-weight positions
has been vindicated, particularly in Real Estate, which may be
feeling  the  effects  of the tightening  monetary  conditions
explained  above: having reduced AGCiT's relative  performance
by  195  basis points over the whole of 2006, sector selection
for  Real Estate added 189 basis points in the first  half  of
2007.

Eating into the beneficial effects of sector selection  was  a
negative contribution from stock selection.  The incidence  of
profit warnings, which are inevitable in an 86 stock portfolio
over  a  six month period, was not uncommonly high.   This  in
part  reflects the continuation of benign trading  conditions.
More  relevant  is  the  effect of your  Managers'  consistent
adherence to a value investment style, which was not  in  step
with the bull market conditions that prevailed in much of  the
first half.  A reluctance to expose the portfolio to companies
whose growth prospects are more than discounted in exaggerated
valuations proved particularly painful in two sectors.

Within  the HGSC (XIC), Media and Software & Computer Services
performed  strongly,  rising by 11.3% and 13.5%  respectively.
In  each  case, however, these returns were driven by a  small
number  of companies, typically also members of the FTSE  250,
that  over  the first half were taken from what your  Managers
already   considered  to  be  high  ratings  to  even   higher
valuations.  They therefore eschewed these stocks,  preferring
to invest further down the size spectrum in businesses on more
modest   valuations   but  still  with   good,   albeit   less
spectacular,   growth  prospects.   These  two-speed   sectors
together  accounted  for more than all  the  drag  from  stock
selection experienced by the portfolio in the first half.

De-equitisation,  a  term  that describes  the  tendency  over
recent  years to replace equity financing with debt financing,
continued.   AGCiT benefited, with three holdings  taken  over
and  another two in talks with potential acquirers at the  end
of  June.   However,  in  contrast  to  previous  years,  when
takeover   activity  was  concentrated  within  medium   sized
companies,  much of the action has taken place out of  AGCiT's
reach  within the large cap world.  Underlying this  shift  is
the  strong  performance of the FTSE 250  over  recent  years,
which  has taken many of its constituents to valuation  levels
above  those of their larger peers and that are now often  too
high to be refinanced substantially with debt.  Private equity
firms  have therefore been scrutinising larger businesses  and
completed several substantial deals in the first half, notably
TXU  for $45bn in the US and Alliance Boots for £11bn  in  the
UK.   This pick-up in takeover activity among larger companies
helps  explain the relative strength of the FTSE  100  against
the  FTSE  250 so far this year, only the second half-year  of
large cap out-performance since the end of 2002.

While  larger  companies may now be making  the  headlines  in
terms  of  takeovers, de-equitisation in  its  less  glamorous
forms  remains  relevant to small companies.  Dividend  growth
continues  to  exceed  inflation by a substantial  margin  and
indeed  the long term average achieved by equities.   This  is
demonstrated by the following analysis of AGCiT's portfolio of
86 companies at the end of June, a useful cross-section of the
small  cap  universe.  Of those companies, it was the  current
policy of 4 not to pay a dividend, while a further 3 had  been
listed   for   less   than   two  years,   preventing   growth
calculations.  Of the remaining 79, 4 cut their  dividends,  8
left them unchanged and 67 reported increases.  Of the 79, the
median  rate  of dividend growth was 10%, though  this  median
does not necessarily reflect AGCiT's actual receipts, since it
is  diluted by the other 7 holdings and since the portfolio is
actively managed, with a specific rate of dividend growth  not
targeted.


INVESTMENT OUTLOOK

Two  years ago, Alan Greenspan described as a "conundrum"  the
reluctance  of long bond yields to respond to rising  interest
rates.  It would, however, seem that the recent rapid rise  in
bond yields has gone some way to resolving that conundrum.  An
environment   of  higher  government  bond  yields   and,   by
extension,  tighter  monetary  conditions  may  have  profound
implications  for  the  valuation  of  other  asset   classes,
including  equities.   First,  higher  borrowing  costs  ought
eventually to have a dampening effect on economic activity and
eventually  corporate  profitability.  Second,  costlier  debt
undermines   the  viability  of  highly  leveraged  investment
activity  that  has  driven the fantastic  returns  of  recent
years.  Third, as the risk free rate, government  bond  yields
are  the  basis for valuation of other asset classes -  higher
yields  should, other things being equal, imply  lower  equity
prices.

In  the  face  of  these influences, the initially  insouciant
reaction  of  stockmarkets  to  the  sell-off  in  bonds   was
surprising.  It is, though, perhaps a reaction to the brighter
outlook  for the real economy, and by extension for  corporate
profitability, implied by a normalised US yield curve  and  to
hints  that the sovereign wealth funds of East Asian and  oil-
rich   economies  were  looking  to  reduce  bond   exposures.
However, as the half year drew to a close, there were signs of
tighter  credit  conditions permeating the asset  markets  and
greater  risk aversion developing.  The failure of  two  hedge
funds  that  had  bet  heavily on bonds  backed  by  sub-prime
mortgages affected confidence, seeming to serve as a  reminder
that  the  US housing market remains troubled and will  be  an
important  influence on both real economic  activity  and  the
financial  markets as the year goes on.  Moreover, the  market
for  leveraged  loans is showing shown signs of  strain,  with
several  scheduled corporate bond issues either  re-priced  or
delayed.

Your  Managers  therefore retain a cautious  stance  and  have
oriented AGCIT's portfolio accordingly.  They remain reluctant
to  expose  AGCiT to parts of the market that  trade  on  high
valuations  and  that  they perceive to  have  benefited  from
inflow  of  speculative capital.  Accordingly,  the  portfolio
retains  a  relatively low exposure to more highly valued  mid
cap stocks and maintains significant under-weight positions in
Real  Estate and Oil & Gas Producers.  Moreover, the portfolio
has  been  biased towards companies with comparatively  robust
balance   sheets,   which  ought  to  afford   a   degree   of
defensiveness  should trading conditions deteriorate  and  can
also   offer   scope   for  value  enhancement   through   de-
equitisation.




                       30 June 2007     30 June 2006
Characteristics       AGCiT      HGSC   AGCiT     HGSC
                                (XIC)            (XIC)

Number of Companies      86       487      87      560
Weighted Average      £467m     £627m   £397m    £539m
Market
Capitalisation
Price Earnings        16.5x     15.8x   15.7x    16.9x
Ratio (Historic)
Net Dividend Yield     2.5%      2.0%    3.1%     2.2%
(Historic)
Dividend Cover         2.4x      3.2x    2.1x     2.7x
(Historic)


With  the  return  from cash, notwithstanding recent  interest
rate  rises, comparatively low, a corollary of the portfolio's
skew to companies with net cash on their balance sheets is  an
exaggerated PE, which, as the table above demonstrates, was 4%
higher than that of the HGSC (XIC) at the end of June.  It  is
possible  to look through this effect by examining  ratios  of
enterprise value to operating profits, which are unaffected by
how  a company is funded. On this basis, AGCiT's portfolio sat
on  a discount of over 10% to the HGSC (XIC), rather than  the
premium implied by PEs.  Your Managers take comfort from  this
valuation  advantage,  which  they  believe  forms   a   sound
foundation for AGCiT's prospects.

                                        Aberforth Partners LLP
                                                      Managers
                                                  18 July 2007







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

INCOME STATEMENT
For the six months ended 30 June 2007
(unaudited)

                       6 months to           6 months to
                      30 June 2007          30 June 2006
                 Revenue Capital  Total  Revenue Capital Total
                   £'000  £'000   £'000  £'000   £'000   £'000


Realised net gains    -  12,766  12,766      -   9,957   9,957
on sales
Movement in           -  (4,409) (4,409)     -  (5,094) (5,094)
unrealised
appreciation
                  -----  ------  ------  -----  ------  ------
Net gains on          -   8,357   8,357      -   4,863   4,863
investments
Dividend income   2,039     176   2,215  1,988     251   2,239
Interest income       1       -       1      3       -       3
Investment         (183)   (426)   (609)  (146)   (340)   (486)
management fee
Transaction costs     -    (433)   (433)     -    (286)   (286)
Other expenses     (108)      -    (108)   (98)      -     (98)
                  -----  ------  ------  -----  ------  ------
Net return before 1,749   7,674   9,423  1,747   4,488   6,235
finance costs and
taxation
Finance costs:
Interest           (343)   (803) (1,146)  (327)   (762) (1,089)
Change in fair        -     958     958      -     957     957
valuation of
interest rate swap
                  -----  ------  ------  -----  ------  ------
                  1,406   7,829   9,235  1,420   4,683   6,103
Finance costs:
Dividends on     (1,446)      -  (1,446)(1,321)      -  (1,321)
Income Shares
classified as
financial
liabilities
                  -----  ------  ------  -----  ------  ------
Return on ordinary  (40)  7,829   7,789     99   4,683   4,782
activities before
tax
Tax on ordinary       -       -       -      -       -       -
activities
                  -----  ------  ------  -----  ------  ------
Return              (40)  7,829   7,789     99   4,683   4,782
attributable to   =====  ======  ======  =====  ======  ======
equity
shareholders

Returns per Share:
  Income Share    5.73p      -    5.73p   5.79p      -   5.79p
  Capital Share      -   74.57p  74.57p      -   44.61p 44.61p




The  Board declared, on 18 July 2007, a first interim dividend
for  the  year  to 31 December 2007 of 3.80p per Income  Share
(2006  -  3.50p)  and  the total cost  of  the  first  interim
dividend  will be £931,000 (2006 - £858,000).  The Board  also
declared,  on  24 January 2007, a second interim  dividend  in
respect of the year ended 31 December 2006 of 5.90p per Income
Share  (2006 - 5.39p) and the total cost of the second interim
dividend amounted to £1,446,000 (2006 - £1,321,000).


RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
(unaudited)

For the six months ended 30 June 2007

                Capital         Capital Capital
           Share Redemp Special Reserve Reserve  Revenue
         Capital   Res. Reserve   Real.  Unreal. Reserve Total
           £'000  £'000   £'000   £'000   £'000   £'000  £'000

Equity       105     50   9,674  24,587  41,660   2,362 78,438
shareholders'
funds as at
31 December
2006
Return         -      -       -  11,280  (3,451)    (40) 7,789
attributable
to equity
shareholders
             ---    ---   -----  ------  ------   ----- ------
Equity       105     50   9,674  35,867  38,209   2,322 86,227
shareholders'===    ===   =====  ======  ======   ===== ======
funds as at
30 June 2007


For the six months ended 30 June 2006

                Capital         Capital Capital
           Share Redemp Special Reserve Reserve Revenue
         Capital   Res. Reserve   Real. Unreal. Reserve  Total
           £'000  £'000   £'000   £'000   £'000   £'000  £'000

Equity       105     50   9,674  10,450  28,852   1,954 51,085
shareholders'
funds as at
31 December
2005
Return         -      -      -    8,820  (4,137)     99  4,782
attributable
to equity
shareholders
             ---   ---    -----  ------  ------   ----- ------
Equity       105    50    9,674  19,270  24,715   2,053 55,867
shareholders'===   ===    =====  ======  ======   ===== ======
funds as at
30 June 2006


BALANCE SHEET
As at 30 June 2007
(unaudited)

                                  30         31         30
                                June   December       June
                                2007       2006       2006
                               £'000      £'000      £'000

Fixed Assets: Investments    145,421    133,087    112,351
at fair value through        -------    -------    -------
profit or loss

Current assets
Amounts due from brokers          39          -        206
Other debtors                  1,351        286        495
Cash at bank                       -          1          -
                             -------    -------    -------
                               1,390        287        701
                             -------    -------    -------
Creditors (amounts falling
due within one year)
Bank overdraft               (1,019)          -          -
Amounts due to brokers         (745)          -       (598)
Other creditors                 (62)        (56)       (40)
                             -------    -------    -------
                             (1,826)        (56)      (638)
                             -------    -------    -------
Net current (liabilities) /    (436)        231         63
assets                       -------    -------    -------

TOTAL ASSETS LESS CURRENT    144,985    133,318    112,414
LIABILITIES

Creditors (amounts falling   (58,758)   (54,880)   (56,547)
due after more than one
year) (Note 5)
                             -------    -------    -------
TOTAL NET ASSETS              86,227     78,438     55,867
                             =======    =======    =======
CAPITAL AND RESERVES:
EQUITY INTERESTS
Called up share capital:
  Capital shares                 105        105        105

Reserves:
  Capital redemption              50         50         50
reserve
  Special reserve              9,674      9,674      9,674
  Capital reserve -           35,867     24,587     19,270
realised
  Capital reserve -           38,209     41,660     24,715
unrealised
  Revenue reserve              2,322      2,362      2,053
                             -------    -------    -------
TOTAL EQUITY                  86,227     78,438     55,867
                             =======    =======    =======
Net Asset Values:
  per Capital Share (Note 4)  846.25p    777.91p    572.22p
  per Income Share  (Note 4)   89.27p     86.77p     82.79p

NOTE:
Income shares are classified as financial liabilities and are
accounted for within Creditors in the Balance Sheet.


CASH FLOW STATEMENT
For the six months ended 30 June 2007
(unaudited)
                              6 months to      6 months to
                                30 June          30 June
                                  2007             2006
                              £'000  £'000    £'000   £'000

Net cash inflow from                 1,257            1,412
operating activities

Returns on investments and
servicing of finance
Interest and other finance   (1,130)         (1,097)
costs paid
Dividends paid               (1,446)         (1,321)
                              -----           -----
Net cash outflow from
returns on investments
and servicing of finance            (2,576)         (2,418)

Capital expenditure and
financial investment
Payments to acquire         (33,284)        (21,239)
investments
Receipts from sales of       29,581          25,553
investments                  ------          ------

Net cash (outflow) / inflow
from capital
expenditure and financial           (3,703)          4,314
investment                           -----           -----

Net cash (outflow) / inflow         (5,022)          3,308
before financing activities
Financing

Flexible loans drawndown /   4,002          (2,675)
(repaid)                     -----           -----

Net cash inflow / (outflow)          4,002          (2,675)
from financing
                                     -----           -----
Change in cash during the           (1,020)            633
period                               =====           =====

Reconciliation of net return
before finance costs and
taxation to net cash inflow
from operating activities
Net return before finance            9,423           6,235
costs and taxation
Net gains on investments            (8,357)         (4,863)

Transaction costs                      433             286
Increase in debtors                   (236)           (225)
Decrease in creditors                   (6)            (21)
                                     -----           -----
Net cash inflow from                 1,257           1,412
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"
issued  in  2005. 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 2006 have been applied.


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

                                         Six           Six
                                      months        months
                                    ended 30      ended 30
                                   June 2007     June 2006
                                       £'000         £'000
Amounts      recognised      as
distributions     to     Income
Shareholders in the period:
Second Interim Dividend for the        1,446         1,321
year  to  31 December  2006  of
5.90p paid on 22 February  2007
(2006   -  5.39p  paid  on   23
February 2006)

A  first Interim Dividend for the year to 31 December
2007  of  3.80p  (2006 - 3.50p) will be  paid  on  23
August  2007  to Income Shareholders on the register
on  27  July 2007.


3. RETURNS PER SHARE
The  calculations of the revenue return per Income  Share  are
based on net revenue of £1,406,000 (30 June 2006 - £1,420,000)
and  on  24.5 million Income Shares. The calculations  of  the
capital  return  per Capital Share are based  on  net  capital
gains  of £7,829,000 (30 June 2006 - £4,683,000) and  on  10.5
million Capital Shares


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        31 Dec       30 June
                            2007          2006          2006
                           £'000         £'000         £'000

Total net assets          86,227        78,438        55,867
Revenue reserve           (2,322)       (2,362)       (2,053)
                          ------        ------        ------
Net Asset Value           83,905        76,076        53,814
of Capital                ======        ======        ======
Shares

Number of             10,500,000    10,500,000    10,500,000
Capital shares
NAV per Capital           799.10p       724.53p       512.51p
Share (Income
Shares at 100p)

Net Asset Value of Capital Shares and Income Shares (Articles
Basis)

                      Capital        Income         Total
                       Shares        Shares
                        £'000         £'000         £'000
Total net              86,227             -        86,227
assets as at 30
June 2007
Revenue reserve        (2,322)        2,322             -
Capital                     -        24,500        24,500
entitlement of
Income Shares
at 31 March
2011 (valuation
of Income
Shares
disclosed
within
Creditors)
Adjustment to           4,951        (4,951)            -
reflect capital
entitlement not
yet transferred
to Income
Shareholders in
accordance with
Articles
                       ------         ------       -------
Net assets per         88,856         21,871       110,727
Articles as at         ======         ======       =======
30 June 2007

Number of          10,500,000     24,500,000
shares
NAV per share          846.25p         89.27p
(Articles)


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

                       30 June       31 Dec    30 June
                          2007         2006       2006
                         £'000        £'000      £'000

Loan facility            4,300          297      1,625
LIBOR loan              30,000       30,000     30,000
facility
Less:                      (42)         (46)       (51)
unamortised
issue costs
Income shares           24,500       24,500     24,500
Interest rate                -          129        473
swap
                        ------       ------     ------
                        58,758       54,880     56,547
                        ======       ======     ======


6. FURTHER INFORMATION

The  foregoing do not comprise statutory accounts (as  defined
in  section 240(5) of the Companies Act 1985) of the  Company.
The  statutory  accounts for the period to 31  December  2006,
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.


The Interim Report is expected to be posted to shareholders in
the  week commencing 23 July 2007.  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          Aberforth Partners LLP
0131 220 0733

Aberforth Partners LLP, Secretaries - 18 July 2007

ANNOUNCEMENT ENDS