Interim Results

ABERFORTH GEARED CAPITAL & INCOME TRUST plc

INTERIM RESULTS

For the six months to 30 June 2005

FEATURES

     Total Assets Total Return                      +11.8%

     Net Asset Value of Notional Unit Total Return  +16.5%

     Net Asset Value of Capital Shares              +25.3%

     First Interim Dividend                          3.23p [+2.5%]



1.   Notional Unit is made up of 70% Income Shares  and
     30% Capital Shares.
2.   Capital shares performance assumes Income Shares have a capital
     entitlement of 100p each.
3.   For  comparative purposes all of the  above  returns
     were  calculated  using middle market prices  and  exclude
     the  fair value loss on the interest rate swap. (see notes
     to the financial statements).

Aberforth Geared Capital & Income Trust plc (AGCiT)  invests
only in small UK quoted companies and does not invest in any
unquoted  securities,  AIM  listed  securities  or  securities
issued by investment trusts or investment companies.


CHAIRMAN'S STATEMENT TO SHAREHOLDERS

RESULTS REVIEW

I am pleased to be able to report a period of positive returns for the
assets  of  Aberforth Geared Capital & Income Trust  plc.   The  total
return on total assets for the period of 11.8% was achieved against  a
positive  background  for the UK equity market.   The  FTSE  All-Share
Index  showed  a total return of 8.2%, while the Hoare Govett  Smaller
Companies   Index  (Excluding  Investment  Companies)  (HGSC   (XIC)),
representative  of AGCiT's opportunity base, has generated  a  similar
gain of 8.4%.

Given  this  level  of  absolute return on total assets,  the  gearing
employed  by AGCiT worked beneficially to generate a 16.5%  return  on
Shareholders'  funds.   After allowance has been  made  for  the  100p
capital  entitlement of the Income Shares, the net asset  value  of  a
Capital Share rose by 25.3% from 314.6p on 31 December 2004 to 394.2p.

A  first interim dividend for 2005 of 3.23p per Income Share has  been
declared.  This represents an increase of 2.5% over the 3.15p paid  in
respect of the comparative period in 2004.  The dividend will be  paid
on  25  August 2005 to Income Shareholders on the register on 29  July
2005.

ACCOUNTING STANDARDS

There  are  several changes to accounting practices that  have  to  be
incorporated  into these accounts. Unfortunately the immediate  impact
of  the  changes is to complicate reporting, but as we move into  2006
the  reporting  will simplify as comparables will be on  a  consistent
basis.

AGCiT continues to prepare its financial statements under UK Generally
Accepted  Accounting  Practice (GAAP)  and  the  AITC's  Statement  of
Recommended  Practice. It has been resolved not to adopt International
Accounting Standards at this time.

In  the  meantime the financial statements incorporate, for the  first
time,  Financial Reporting Standard (FRS) 25 and 26. Adoption of these
standards  has required a change in the treatment and presentation  of
the  interim dividend, the interest rate swap and the basis of valuing
investments  in  the  portfolio. Further information  regarding  these
changes has been provided in the notes to these financial statements.

These   changes  make  comparison  with  the  previous  periods   less
straightforward.  In  accordance with the AITC's recommended  practice
the total return figures and net asset values reported above have been
prepared  using  the  accounting policies used  for  the  year  to  31
December  2004 and do not include the adjustments required by  FRS  25
and 26 as described above.

                                                   Alastair C Dempster
                                                              Chairman
                                                          13 July 2005

MANAGERS' REPORT

INVESTMENT BACKGROUND

In  constant currency terms, the returns from UK equities in the first
half  were  broadly consistent with those of other major  stockmarkets
around  the  world.  Other asset classes however, proved  rather  more
exciting.  Commodities  performed well with  the  oil  price  climbing
towards $60. Meanwhile, leveraged players in the corporate debt market
had  their  nerve tested by an increase in yields following downgrades
of  Ford  and  GM  debt  by  the  rating agencies.   Furthermore,  the
resurgence of the US dollar, given extra impetus by the "no" votes for
the  European  constitution, caught many by surprise.  Taking  a  step
back,  however,  the problem of the gaping US current account  deficit
remains  unresolved  and the dollar's 11% rise against  the  euro  has
merely taken it back to levels that prevailed twelve months ago.

However,  the most intriguing and perhaps most significant development
has  been the continued decline in government bond yields to unusually
low  levels  in  a  post war context, a phenomenon described  by  Alan
Greenspan as a "conundrum".  With the Fed having raised interest rates
four  times in 2005, this has resulted in a convergence between  short
and  long  term yields in the US.  Conventionally, such  a  flattening
yield  curve  is  interpreted  as an indication  of  slowing  economic
activity.

Recent  economic  data  in the US are, though,  far  from  conclusive.
While,  a decline in the rate of growth later in the year would hardly
be  surprising  given the strength of the upswing over  the  last  two
years,  the  housing market remains buoyant, perhaps too buoyant,  and
should  be  able  to  bolster  consumer spending  for  some  time.  In
contrast,  the  UK, where monetary conditions have  been  tighter  for
longer,  has  experienced  a  pronounced  moderation  in  house  price
inflation.  The consequent slowdown in the consumer sector, evident in
weak retail sales and consumer borrowing data, is now becoming evident
in slowing GDP growth.


INVESTMENT PERFORMANCE

Against this background, the HGSC (XIC), with its bias to domestically
oriented  sectors such as retailing and building, might be  considered
to  have  performed resiliently, having exceeded the return  from  the
more internationally diversified larger companies.

As  was  the  case in 2004, the small company universe appears  to  be
benefiting  from corporate activity and, more generally,  a  trend  to
replace equity with debt financing.  This is most obvious in the still
high  level  of  takeovers,  though also encompasses  rising  dividend
payments  and  returns of equity through share  repurchases.   In  the
first  half, 30 of the 662 companies that comprised the HGSC (XIC)  at
the  start  of the year were acquired, with several others subject  to
takeover   speculation.   AGCiT  again  benefited  disproportionately,
having  seen  bids or approaches for seven of its 86 stock  portfolio.
The  buyers have tended to be other corporates, though private  equity
houses  remain able to compete by virtue of the present  cheapness  of
debt finance. Meanwhile, twelve portfolio companies have returned,  or
are  in the process of returning, capital to shareholders, most  often
in the form of share repurchases.

Turning to the supply of new equity, the first half saw ten new issues
eligible for inclusion in the HGSC (XIC). In contrast, there  were  31
new  issues  in the first half of 1996, a period when smaller  company
valuations,  both absolute and relative to large, were very  close  to
those  currently  prevailing.  Moreover,  company  boards  now  appear
reluctant to use equity to fund acquisitions.  Ten portfolio companies
made  acquisitions in the first half, all of which were  substantially
debt  funded.  The supply of new equity to the small company  universe
has  therefore  not  compensated for reductions through  takeover  and
share  buy-backs.  This remains the case even taking into account  the
frenzied activity on AIM, which admitted 219 companies to its ranks in
the  first  half alone. AGCiT does not invest in AIM listed  companies
and they are not part of its investment universe.

AGCiT's  out-performance in the first half was helped by, but was  not
reliant  upon, corporate activity.  The portfolio added value  against
the HGSC (XIC) in 20 out of 31 sectors.  As has been the case for some
time,  stock  selection, which accounted for  over  80%  of  the  out-
performance, was more significant than sector selection.  Indeed,  the
present importance of company specific fundamentals is perhaps evident
in  the  fact that eight sectors were represented in the list  of  ten
stocks that made the largest positive contributions to the portfolio's
return.   This top ten contained just two companies that were  subject
to takeover and two others that bought back shares.  The two companies
that   were   acquired,  though  affording  an  immediate   boost   to
performance,  have been holdings since the portfolio was  first  fully
invested.

It  is  worth  noting  that  by the end of the  period,  AGCiT  had  a
considerably  lower exposure than the small company  universe  to  the
Financials sector.  Even here company specifics have played  the  more
important  role for your Managers in arriving at sector  weights,  but
two  general comments might be made.  First, an environment of  higher
interest rates and more recently a cautious consumer have clouded  the
trading outlook for many of the sector's constituents.  Secondly,  the
tremendous performance of property companies in recent years has  seen
their  valuations rise to levels that, in the absence  of  appreciable
rental growth, are considerably less appealing than previously.

INVESTMENT OUTLOOK

Asset  prices offer the equity investor conflicting signals about  the
outlook  for  economic growth and corporate profits.  The buoyancy  of
the  corporate  bond, commodity and property markets would  appear  to
indicate good growth with some inflationary risk.  On the other  hand,
the  strength of government bonds, whose "risk free" yields are  often
the  starting  point in determining the value of other asset  classes,
points to a weaker and potentially deflationary outcome.

In   searching  for  a  unifying  theory  to  explain  this   apparent
inconsistency,  it is tempting to alight upon the low  interest  rates
that  have  endured  in  the US and elsewhere for  some  time.   While
undoubtedly  sustaining economic growth, these have  also  facilitated
leveraged  investment  across the range of  asset  classes,  including
government bonds, the demand for which has been boosted by East Asia's
central banks.

For   valuations  across  financial  markets  to  be  reliant  on  the
perpetuation of cheap debt is troublesome.  In the UK, where  interest
rates  have  been  on an upward path, the potential ramifications  are
becoming  obvious  in  the  housing market and  by  extension  in  the
consumer  sector.  This inevitably clouds the profit outlook  for  the
small  company  universe's many consumer facing  businesses,  but  the
large  company  universe, with its sizeable exposure to  banks,  might
also be affected.  As ever, though, the stockmarket is performing  its
discounting function: many constituents of those sectors considered at
risk are already trading on low valuations.



                            30 June 2005         30 June 2004
Characteristics           AGCiT   HGSC (XIC)  AGCiT   HGSC (XIC)

Number of Companies         86      627         95      707
Weighted Average Market   £343m   £409m       £331m   £414m
Capitalisation
Price Earnings Ratio      14.0x   16.4x       13.1x   16.0x
(Historic)
Net Dividend Yield         3.1%    2.3%        3.7%    2.6%
(Historic)
Dividend Cover (Historic)  2.3x    2.6x        2.0x    2.4x


Buoyed  by takeover activity, the overall valuation of small companies
remains  broadly in line with that of the FTSE All-Share Index,  whose
PE  and  yield  are 16.0x and 3.1% respectively.  It is worth  noting,
though,  that  the HGSC (XIC) comprises a heterogeneous collection  of
businesses  with  a  wide  range of valuations.  As  the  table  above
demonstrates,  it  therefore  remains possible  to  construct  a  well
diversified portfolio, whose average valuation would appear consistent
with your Managers' value investment principles.

                                                    Aberforth Partners
                                                              Managers
                                                          13 July 2005

The Statement of Total Return, summary Balance Sheet and
summary Cash Flow Statement are set out below: -

STATEMENT OF TOTAL RETURN
(Incorporating the Revenue Account)
For the six months ended 30 June 2005

(unaudited)

                          6 months to             6 months to
                         30 June 2005            30 June 2004
                     Revenue Capital Total   Revenue Capital Total
                      £'000   £'000  £'000   £'000    £'000  £'000

 Realised gains           -   5,269  5,269       -    5,745  5,745
 /(losses) on sales
 Unrealised gains         -   2,832  2,832       -    2,432  2,432
                      -----   -----  -----     -----  -----  -----
 Net Gains on          -      8,101  8,101       -    8,177  8,177
 investments
 Dividend income      1,909     515  2,424    1,862      -   1,862
 Interest income          1       -      1       21      -      21
 Other income             -       -      -        9      -       9
 Investment            (122)   (285)  (407)    (104)   (242)  (346)
 management fee
 Other expenses         (94)      -    (94)     (89)      -    (89
                      -----   ----- ------    -----   ----- ------
Net return before     1,694   8,331 10,025    1,699   7,935  9,634
 finance
 costs and
 taxation

 Interest and          (339)   (791)(1,130)    (311)  (726) (1,037)
 other finance
 costs
                      -----   -----  -----    -----  -----   -----
 Return               1,355   7,540  8,895    1,388  7,209   8,597
 attributable to
 Shareholders

 Dividends and         -        (33)   (33)    (772)   (33)   (805)
 other
 appropriations
                      -----   -----  -----    -----  -----   -----
                      1,355   7,507  8,862      616  7,176   7,792
                      -----   -----  -----    -----  -----   -----
 Returns per
 Share:
    Income Share       5.53p    -     5.53p    5.67p    -     5.67p
    Capital Share        -    71.81p 71.81p      -   68.66p  68.66p


 Dividends per         -        -       -     3.150p    -    3.150p
 Income Share

NOTES
1.   The  revenue column of this statement is the  profit  and
loss account of the Company.  All revenue and capital items in
the  above  statement derive from continuing  operations.   No
operations were acquired or discontinued in the period.

2.    The calculations of revenue return per Income Share  are
based on net revenue of £1,355,000 (30 June 2004 - £1,388,000)
and  on  24.5  million  Income Shares.   The  calculations  of
capital  return  per Capital Share are based  on  net  capital
gains  of £7,540,000 (30 June 2004 - £7,209,000) and  on  10.5
million Capital Shares.

3.    The Board declared, on 13 July 2005, an interim dividend
of 3.23p per Income Share (30 June 2004 - 3.15p) and the total
dividend  payable will be £791,000 (30 June 2004 -  £772,000).
The  Board also declared, on 19 January 2005, a second interim
dividend  in  respect of the year ended 31  December  2004  of
5.255p per Income Share (30 June 2004 - 5.125p) and the  total
dividend  paid  amounted  to  £1,287,000  (30  June   2004   -
£1,256,000).


SUMMARY BALANCE SHEET
As at 30 June 2005
(unaudited)

                                         30        31         30
                                       June  December       June
                                       2005      2004       2004
                                      £'000     £'000      £'000

 Securities officially listed on    100,097    95,062     84,996
 the London Stock Exchange          -------    ------     ------

 Debtors                                668       258        606
 Cash at bank                            -         -          -
 Overdraft                               -     (1,685)      (211)
 Other creditors                        (47)   (1,345)    (1,235)
                                    -------    ------     ------
 Net current assets /                   621    (2,772)      (840)
 (liabilities)                      -------    ------     ------

 Total assets less current          100,718    92,290     84,156
 liabilities

 Creditors (amounts falling due     (35,502)  (34,235)   (34,230)
 after more than one year)          -------    ------     ------

 Total assets less liabilities       65,216    58,055     49,926
                                    -------    ------     ------

Capital and reserves:
   Called up share capital              350       350        350

 Reserves:
   Capital redemption reserve            50        50         50
   Special reserve                   33,929    33,929     33,929
   Capital reserve - realised         9,630     4,922      1,040
   Capital reserve - unrealised      21,117    18,285     13,594
   Interest rate swap reserve        (1,734)       -          -
   Revenue reserve                    1,874       519        963
                                    -------    ------     ------
                                     65,216    58,055     49,926
                                    -------    ------     ------


 Net Asset Values:
   per Income Share                 76.68p    68.48p     67.57p
   per Capital Share  (Note 3)     442.20p   393.13p    317.81p

NOTE
During each period the Company had 24.5 million Income Shares and
10.5 million Capital Shares in issue.


SUMMARY CASH FLOW STATEMENT
For the six months ended 30 June 2005
(unaudited)
                             6 months to     6 months to
                               30 June         30 June
                                 2005            2004
                             £'000  £'000    £'000  £'000

 Net cash inflow from               1,514           1,274
 operating activities

 Returns on investments and
 servicing of finance
 Interest and other finance  (1,137)        (1,027)
 costs paid
                             ------         ------
 Net cash outflow from
 returns on investments
 and servicing of finance          (1,137)         (1,027)

 Capital expenditure and
 financial investment
 Payments to acquire        (12,527)        23,051)
 investments
 Receipts from sales of      15,593         20,509
 investments                 ------         ------
 Net cash inflow/(outflow)
 from capital expenditure and
 financial investment               3,066         (2,542)

 Equity dividends paid             (1,287)        (1,256)
                                   ------         ------
 Net cash inflow/(outflow)          2,156         (3,551)
 before financing

 Financing
 Loans (repaid)/drawn down   (471)          3,339
                            -----          ------
 Net cash (outflow)/inflow           (471)         3,339
 from financing                    ------         ------
 Change in cash during the          1,685           (212)
 period                            ------         ------

NOTES TO THE FINANCIAL STATEMENTS

1. ACCOUNTING STANDARDS
The financial statements have been prepared in accordance with
applicable  accounting standards and the AITC's  Statement  of
Recommended Practice "Financial Statements of Investment Trust
Companies".  In  preparing the financial  statements  for  the
current period, the same accounting policies used for the year
to  31 December 2004 have been applied except that the Company
has  adopted  FRS  25 "Financial Instruments:  Disclosure  and
Presentation" and FRS 26 "Financial Instruments: Measurement".

2. FRS 25 AND 26
The  adoption of FRS 25 has resulted in a change in accounting
for the interim dividend and the interest rate swap. Dividends
payable  by  the  Company  are now  recorded  as  a  liability
following  a  dividend declaration by the Board and  therefore
the  interim dividend of 3.23p per share, declared on 13  July
2005,  has not been recorded as a liability of the Company  as
at  30  June 2005. In previous financial statements, dividends
declared  were  recognised in respect of the period  to  which
they  related. This change in accounting policy for  dividends
has  increased Shareholders' funds by £791,350 as at  30  June
2005.

FRS  25 requires derivatives to be measured at fair value  and
depending  on  the nature of the derivative, changes  in  fair
value must be recognised either in the profit and loss account
or  in equity reserves. The company's interest rate swap is an
effective  cash flow hedge and therefore changes in  its  fair
value are recognised in equity reserves. In previous financial
statements the fair value of derivatives were not included  on
the  Balance  Sheet.  The  change  in  accounting  policy  for
derivatives  has  reduced Shareholders'  Funds  by  £1,734,000
(equivalent to 16.5p per Capital share) as at 30 June 2005.

The  adoption of FRS 26 has resulted in a change in the  basis
of  valuation  of  investments. Under FRS  26,  the  Company's
investments have been categorised as "financial assets at fair
value  through profit & loss" and therefore quoted investments
are  now  valued at bid prices. Previously, quoted investments
were  valued at middle market prices. The change in accounting
policy for valuations of investments has reduced Shareholders'
funds by £813,000 (equivalent to 7.7p per Capital share) as at
30 June 2005.

As permitted by FRS 25 and 26, comparatives have not been restated.



3. NET ASSET VALUE OF CAPITAL SHARES
Net Asset Value of Capital Shares
                         Accounting policies     Accounting policies
                         used for the year for   used for the year to
                            the six months to      31 December 2004
                              30 June 2005

Valuation Basis                 As at 30          As at 30   As at 31
                               June 2005         June 2005   Dec 2004

Income Shares
at final
entitlement of
100p                             369.9p             394.2p     314.6p

Income Shares
at NAV of
76.68p (30 June
2005)                            442.2p             466.5p        -

Income Shares
at NAV of
68.48p (31 Dec
2004)                               -                  -       393.1p

4.  In accordance with FRS 25 the Directors are of the opinion
the   Income  and  Capital  Shares  are  in  substance  equity
instruments of the Company.

5.   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
2003,  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 on
18  July  2005.  Members of the public may obtain copies  from
Aberforth Partners, 14 Melville Street, Edinburgh EH3  7NS  or
from its website at www.aberforth.co.uk.

CONTACT:      David Ross          Aberforth Partners
0131 220 0733

Aberforth Partners, Secretaries - 13 July 2005
ANNOUNCEMENT ENDS