Final Results

City of Oxford Geared Inc Tst PLC
23 May 2001


Chairman's Statement

This is the Company's second annual report since its reconstruction but the
first under its new name of The City of Oxford Geared Income Trust. The report
covers the twelve months to 31st March 2001 whereas last year we were
reporting for a seventeen month period, and so strict comparisons of income
and performance are not possible.

It has been yet again an extremely turbulent and eventful period for equity
investors but I am pleased to say that, unlike last year, the prevailing
trends have been much more in the Company's favour. The collapse of the
Telecom Media Technology ('TMT') bubble (a phrase to which commentators
nowadays like to add the word 'inevitable') and associated recovery in more
established companies enabled the portfolio to show some asset growth over a
period where the wider market registered a significant decline. Our preferred
measure of performance is to look at the total return on total assets. This
shows a return of 5.0% which compares with a fall of 10.8% in the All Share
Index on an equivalent basis. The FTSE 350 Higher Yield Index rose by 16.7%
benefiting from its relatively pure exposure to the older economy. Whilst we
would obviously like to report more substantial absolute returns, investors in
the trust will know that, with a geared capital structure and a proportion of
the portfolio in split capital shares, the odds are always against us in a
falling market. The board therefore view the year's performance as really
quite good.

The revenue account has also been satisfactory with net post tax revenues of £
6.23m, enabling the directors to declare a fourth interim dividend of 2.15p
per income share and 3.00p per geared ordinary share. This is a better outcome
than we expected a few months ago when the level of the third interim dividend
paid was higher than the equivalent dividend paid in the previous accounting
period. We warned at that time that this increase should not be taken to imply
that the dividends for the whole year would be increased and so it is pleasing
to report that this was the outcome. We have also been able to make a further
transfer to reserves of £133,000.

It is one of the more useful get-outs to say that we face uncertain times
ahead, but in the current circumstances I feel more than justified in saying
it. Given the sharp falls which we have already seen across world equity
markets and the aggressive response by the Federal Reserve Bank through rapid
interest rate cuts, logic might suggest that we are now past the worst and can
look forward to a more fruitful year ahead. We should however make some
provision in our thinking both for the scale of earnings downgrades now
affecting the markets, and the risk of a more protracted downturn developing.
Indeed there is a large body of opinion in the US which argues that a period
of retrenchment is both inevitable and necessary if the problems of high
consumer debt and the balance of payments deficit are to be resolved.

As far as the UK is concerned, those factors most relevant to us look more
promising. Our economy looks better placed than most to weather a downturn,
while many of the higher yielding shares we hold still remain considerably
undervalued even after last year's performance. Further interest rate cuts
will only heighten their attractive valuations.

Penultimately, I feel moved to say something about the Association of
Investment Trust Companies' (AITC) marketing initiative, known as 'its'. Your
board have carefully considered the AITC's latest proposals, which would
involve us parting with a small proportion of your assets to help fund their
generic advertising and marketing campaign.

For a variety of reasons, the main one being that split capital trusts tend
not to stand at material discounts to Net Asset Value, we feel that there is
no advantage to our shareholders in supporting the campaign. We have also said
that if a marketing levy were to become compulsory, we would resign from the
AITC.

Finally, I hope some, if not all, of you will be able to come to the Annual
General Meeting on 18th July and I look forward to seeing you there.



Fred Carr

23 May 2001



Consolidated Statement of Total Return

(incorporating the Revenue Account*) of the Group

for the year ended 31 March 2001

                                                  Period from 29 October 1998 
                    Year ended 31 March 2001                 to 31 March 2000 

                  Revenue    Capital    Total   Revenue     Capital     Total 
                    £'000     £'000    £'000      £'000      £'000      £'000 

  Gains on               -     4,668    4,668          -      1,872      1,872
  investments                                                                 

  Income             7,894         -    7,894      6,647          -      6,647

  Investment         (328)     (765)  (1,093)      (280)      (655)      (935)
  management fee                                                              

  Other expenses     (147)         -    (147)      (141)          -      (141)

  Net return         7,419     3,903   11,322      6,226      1,217      7,443
  before finance costs                                                          
  and taxation                                                                  

  Interest         (1,041)   (2,428)  (3,469)      (839)    (1,956)    (2,795)
  payable                                                                     

  Return on          
  ordinary activities                                                           
      
  Before            6,378     1,475    7,853      5,387      (739)      4,648   
  taxation                                                                    

  Taxation           (147)       147        -      (236)        214       (22)

  Return on          6,231     1,622    7,853      5,151      (525)      4,626
  ordinary                                                                    
  activities                                                                  

  After taxation                                                              

  Dividends and    (4,178)   (3,470)  (7,648)    (3,548)    (2,758)    (6,306)
  other                                                                       
  appropriations                                                              
  in respect of                                                               
  non-equity                                                                  
  shares                                                                      

  Return             2,053   (1,848)      205      1,603    (3,283)    (1,680)
  attributable                                                                
  to Geared                                                                   
  Ordinary                                                                    
  shareholders                                                                

  Interim          (2,009)         -  (2,009)    (1,597)          -    (1,597)
  dividends                                                                   
  paid to                                                                     
  Geared                                                                      
  Ordinary                                                                    
  shareholders                                                                

  Transfer to           44   (1,848)  (1,804)          6    (3,283)    (3,277)
  reserves                                                                    

  Return per        11.83p  (10.65)p    1.18p     16.19p   (33.15)p   (16.96)p
  Geared                                                                      
  Ordinary Share                                                              

  Return per         8.48p              8.48p     11.54p                11.54p
  Income Share                                                                

  Dividends per     11.58p                        15.72p                      
  Geared                                                                      
  Ordinary Share                                                              

  Dividends per      8.30p                        11.27p                      
  Income Share                                                                



* The revenue column of this statement is the profit and loss account of the
Group.

All principal activities of the Group are continuing operations as defined by
Financial Reporting Standard 3. No operations were acquired or discontinued in
the period.


Consolidated Balance Sheet

as at 31 March 2001
                                                                              
                                     31 March 2001               31 March 2000
                                 £'000       £'000           £'000       £'000

  Listed investments                      

  Current assets                           141,876                     145,894  
                                 
  Debtors                        3,823                       1,432            

  Cash at bank                  10,964                       6,266            

                                14,787                       7,698            

  Creditors: amounts           (3,723)                      (2,404) 
  falling due within                                                          
  one year                                                                    

  Net current assets                         11,064                      5,294  
              
                                            152,940                    151,188

  Creditors: amounts                        (47,550)                   (47,550) 
  falling due after                                                           
  more than one year                                                          

  Net assets                               105,390                     103,638

  Capital and reserves                                                        

  Called up share                            5,152                       5,152
  capital                                                                     

  Share premium                             98,991                      98,994

  Redemption reserve                         6,228                       2,758

  Capital reserve - realised                (4,043)                     (2,133)

  Capital reserve - unrealised              (1,088)                     (1,150)

  Revenue reserve                              150                          17

  Total shareholders' funds                105,390                     103,638
                                                                         
  Total shareholders'                                                         
  funds comprise                                                              
  equity and non-equity                                                         
  interests as follows:                                                         
          
  Equity                             
               - Geared Ordinary            11,715                      13,522  
                 shareholders                                                   

  Non-equity                               
               - Income shareholders        49,370                      49,281  
                                                      
               - Zero dividend              44,305                      40,835
                 preference shareholders                                        
                       
                                           105,390                     103,638

Consolidated Cash Flow Statement 
for the year ended 31 March 2001
                                                                              
                                           2001    Period from 29 October 1998
                                                              to 31 March 2000
                                £'000     £'000              £'000       £'000

  Cash flow from                          6,184                          4,368
  operating activities                                                        

  Taxation received/(paid)                   89                           (22)

  Return on investments                                                       
  and servicing of finance                                                    

  Interest paid                         (3,498)                        (2,253)

  Capital expenditure and                                                     
  financial investment                                                        

  Purchases of investments   (70,168)                    (164,410)            

  Sales of investments         78,192                       46,202            
                                          8,024                      (118,208)

  Dividends paid - non        (4,089)                      (2,478)            
  equity                                                                      

  Dividends paid - equity     (2,009)                      (1,076)            
 
                                        (6,098)                        (3,554)
 
  Cash inflow/(outflow)                   4,701                      (119,669)
  before management of                                                        
  liquid resources and                                                        
  financing                                                                   

  Management of liquid                                                        
  resources                                                                   

  Money market deposits                 (3,470)                        (4,530)
  placed                                                                      

  Financing                                                                   

  Gross proceeds from               -                       81,939            
  issue of shares                                                             

  Issue expenses paid             (3)                      (3,567)            

  Bank loans drawn down             -                       47,550            
                                            (3)                        125,922

  Increase in cash                        1,228                          1,723

  Reconciliation of net                                                       
  cash flow to movement                                                       
  in net debt                                                                 

  Increase in cash              1,228                                    1,723

  Cash used to increase         3,470                                    4,530
  liquid resources                                                            

  Bank loans drawn down             -                                 (47,550)

  Change in net debt            4,698                                 (41,297)

  Net (debt)/funds at        (41,284)                                       13
  beginning of period                                                         

  Net debt at end of         (36,586)                                 (41,284)
  period                                                                      

  Liquid resources                                                            
  comprise short term                                                         
  money market deposits