Final Results

Shires Income PLC
24 May 2001

News Release



24 May 2001


                              SHIRES INCOME PLC

             PRELIMINARY RESULTS FOR THE YEAR ENDED 31 MARCH 2001



Shires Income plc with total assets of £164.6million aims to provide for
shareholders a high level of income together with growth of both income and
capital from a portfolio substantially invested in UK equities.


                                                              2001         2000

Net assets attributable to shareholders                    £126.0m      £134.3m
Fully diluted net asset value per share                    425.09p      452.82p
Dividends per share                                         19.00p       18.65p
Ordinary share price                                       413.00p      399.00p



*        The total return to shareholders was 7.2%, higher than the return on
net assets because the discount fell to 2.8% from 11.9% over the year.

*        Total return on net assets was -2.0%, well ahead of the return of -
10.8% on the FTSE All-Share Index, the Company's benchmark.

*        Proposed final dividend of 5.95p per share bringing total ordinary
dividends for the year to 19.00p which represents a rise of 1.9% over last
year's payment of 18.65p.

*        The Company's shareholding in Glasgow Investment Managers is now
included in the portfolio of investments at the Directors' valuation and the
shareholding in Shires Smaller Companies at market value.

*        Recent uncertainty in world stockmarkets has caused share prices to
fall to valuation levels previously seen in 1998 and 1980. On these lower
ratings, UK equities offer attractive investment opportunities.



For further information please contact:



David Williams, Managing Director

Glasgow Investment Managers     0141 572 2700


Shires Income plc

                                Annual Report

                             Chairman's Statement



Background



The first three quarters of the Company's financial year witnessed the return
of more conventional patterns of behaviour to world stockmarkets, as investors
switched from exotic to more defensive stocks and the technology bubble
continued to deflate.  Then the first quarter of 2001 saw equity markets
weaken as the rate of growth of the US economy fell sharply.  The extent of
the change in sentiment in the UK equity market is reflected in the divergent
movements of the FTSE 350 Higher Yield Index, which rose by 12.8% over the
year, and the FTSE 350 Lower Yield Index, which fell by 32.7%.



Investment Returns



The Company's total return on net assets was -2.0% which, although negative,
was well ahead of the return of -10.8% on the FTSE All-Share Index, the
Company's benchmark.



The total return to shareholders, at 7.2%, was much better than the return on
net assets, due to a fall in the discount at which the share price stood to
underlying net asset value per share - to 2.8% at 31 March 2001 - from the
unusually high level of 11.9% a year earlier.



Glasgow Investment Managers



I reported last year that the aggregate shareholding of the executives of
Glasgow Investment Managers Limited ('GIM') in their company rose to 50.1%
with effect from 1 April 2000.  As Shires Income's shareholding fell to 49.9%
at the same time, the Board has decided to account for it as an unlisted
investment.  A valuation is now included in the portfolio of investments and
dividends received are included in the revenue account.



GIM's funds under management rose by 16% to over £1 billion in the course of
the year and pre-tax profit rose by 38% to £1.8million.



Shires Smaller Companies



1,047,801 warrants to subscribe for ordinary shares of Shires Smaller
Companies plc at a price of £1.00 per share were exercised on 1 June 2000, the
final date of exercise.  As a result, the Company's interest in Shires Smaller
Companies rose from 26.7% to 28.7% of the total shares in issue.

The Board has decided to value the shareholding in Shires Smaller Companies at
market price, the basis of valuation applied to all other listed security
investments in the Company's portfolio, instead of as an associated
undertaking, the practice in previous years.



Earnings and Dividends



Earnings per share, at 19.27p, were slightly lower than the 19.56p reported
last year.  Higher dividend income from listed investments was a little more
than offset by the impact of the changes in accounting treatment of the
investments in GIM and Shires Smaller Companies and by losses in the trading
subsidiary, Wiston Investment Company Limited.


                                    Page 2





The Board is recommending a final dividend of 5.95p per ordinary share, to
bring total ordinary dividends for the year to 19.00p, a rise of 1.9% over the
18.65p paid last year. If approved, the final dividend will be paid on 31 July
2001 to shareholders on the register at close of business on 6 July 2001.



AITC Classification



When the Association of Investment Trust Companies ('AITC') reviewed the
classification of member companies last year, the Board decided that the
objectives of the Company, together with the characteristics of its longer
term performance, better suited it for inclusion in the UK Growth & Income
category of the Monthly Statistics publication rather than the High Income
category where it had been listed previously.



Portfolio Profile



In the first half of the year under review, exposure to UK equities
represented just below 112% of net assets.  In the second half, the
opportunity represented by lower share prices was taken to increase that
exposure to 116.6% of net assets at 31 March 2001.  This additional investment
in equities was financed by an increase in short-term bank borrowing.  As a
result, total gearing rose to 37.1% of net assets at 31 March 2001 from 29.0%
a year earlier.



The Longer Term



The Company continues to pursue an investment strategy intended to provide
shareholders with both a high level of income and growth in capital and
dividends.  Over the five years to 31 March 2001, the total return on net
assets was 86.4% or 13.3% per annum, which compares with 69.6% or 11.1% per
annum on the All-Share Index.  Dividend growth was 2.5% per annum over the
same period and the historic dividend yield at 31 March 2001 was 4.6%.



Outlook



There are already signs that the recent cuts in UK and US interest rates and
less frequent company profit warnings have encouraged some revival in
confidence among investors.  If the more relaxed monetary policies now in
place have the intended effect, output growth rates on both sides of the
Atlantic should recover in 2002 and equity markets will soon respond to this
improvement in prospects.  Meanwhile, in the recent uncertainty in world
stockmarkets, share prices have fallen to valuation levels previously seen in
1998 and 1980.  On these lower ratings, UK equities offer more attractive
opportunities to invest than for some time.



Michael Hardie



Sadly, I have to inform you that Michael Hardie, who was Chairman of the
Company from 1987 to 1996, died in April. It was during his chairmanship that
major decisions were taken - to issue the first RPI-linked debenture, to write
traded options and take the premiums earned to the revenue account and to make
the investment in GIM. The success of these initiatives has permitted a
greater proportion of investment in growth stocks, which is now being
reflected in the Company's rising dividends.





Annual Report and Annual General Meeting



The Annual Report will be mailed to shareholders on 31 May 2001. Copies may be
obtained from the managers, Glasgow Investment Managers Limited, Sutherland
House, 149 St Vincent Street, Glasgow G2 5DR after that date.


The Annual General Meeting will be held at Trinity House, Tower Hill, London
EC3N 4DH on Friday 29 June 2001 at 12 noon.



A J R Izat

(Chairman)




                              SHIRES INCOME PLC

                    Consolidated Statement of Total Return

                     (incorporating the Revenue Account*)

                       for the year ended 31 March 2001

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

Gains / (Losses) on investments          (6,529) (6,529)    -    (8,805) (8,805)
Income from investment activity   8,040     -     8,040   6,923     -     6,923
Investment management income        -       -       -     3,905     -     3,905
Investment management expenses      -       -       -    (2,561)    -    (2,561)
Net income from investment
management                          -       -       -     1,344     -     1,344
Management and administrative
expenses                           (675)   (322)   (997)   (615)   (319)   (934)
GROUP OPERATING RETURN            7,365  (6,851)    514   7,652  (9,124) (1,472)
Associated undertaking              -        -      -       479   2,689   3,168
NET RETURN BEFORE FINANCE
COSTS AND TAXATION                7,365  (6,851)    514   8,131  (6,435)  1,696

Part disposal of subsidiary         -       (82)    (82)     -     (443)   (443)
undertaking

Finance costs of borrowings:
Group                            (1,779) (1,368) (3,147) (1,576)   (647) (2,223)
Associated undertaking              -       -       -      (134)   (134)   (268)

RETURN ON ORDINARY
ACTIVITIES BEFORE TAXATION        5,586  (8,301) (2,715)  6,421  (7,659) (1,238)

Taxation                           (129)    -      (129)    192     -       192

RETURN ON ORDINARY
ACTIVITIES AFTER TAXATION
FOR THE FINANCIAL YEAR            5,715  (8,301) (2,586)  6,229  (7,659) (1,430)

Preference dividend                   2     -         2       2     -         2
Minority equity interest            -       -       -       430     -       430
RETURN ATTRIBUTABLE TO
EQUITY SHAREHOLDERS               5,713  (8,301) (2,588)  5,797  (7,659) (1,862)
Dividends on equity shares        5,633     -     5,633   5,529     -     5,529

TRANSFER TO/(FROM) RESERVES          80  (8,301) (8,221)    268  (7,659) (7,391)

Return per ordinary share        19.27p (28.00)p (8.73)p 19.56p (25.83)p (6.27)p
                                           
Dividends per ordinary share     19.00p                  18.65p

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


                              SHIRES INCOME PLC

                             Group Balance Sheet

                             as at 31 March 2001


                                                           2001            2000
                                                           £000            £000
FIXED ASSETS
Ordinary shares                                         146,991         137,428
Convertibles                                             10,120          14,463
Other fixed interest                                      7,850           7,702
Subsidiary undertakings                                       -               -
Associated undertaking                                        -          12,943
Unlisted investments                                      7,947             492
Tangible assets                                               -             175
                                                        172,908         173,203

CURRENT ASSETS
Debtors                                                   2,308           2,217
Dealing investments held by
subsidiary undertakings                                     478             834
Cash at bank and in hand                                    151           3,574
                                                          2,937           6,625
CREDITORS
Amounts falling due within one year                      11,247           7,418
NET CURRENT LIABILITIES                                 (8,310)           (793)

TOTAL ASSETS LESS CURRENT
LIABILITIES                                             164,598         172,410

CREDITORS
Amounts falling due after more than one
Year                                                     38,517          37,260

MINORITY EQUITY INTEREST                                      -             848

NET ASSETS                                              126,081         134,302

SHAREHOLDERS' FUNDS                                     126,081         134,302
(Including non-equity)

Net asset value per ordinary share                      425.09p         452.82p


Notes:

 1. All revenue and capital items in the Consolidated Statement of Total Return
    derive from continuing operations. No operations were acquired or
    discontinued in the year.

 2. The financial information set out above does not constitute the Company's
    statutory accounts for the years ended 31 March 2000 and 2001 but is
    derived from those accounts. Statutory accounts for 2000 have been
    delivered to the Registrar of Companies and those for 2001 will be
    delivered following the Company's annual general meeting. The auditors
    have reported on those accounts; their reports were unqualified and did
    not contain statements under section 237 (2) or (3) of the Companies Act
    1985.



                              SHIRES INCOME PLC

                       Consolidated Cash Flow Statement

                       for the year ended 31 March 2001


                                                 £000     £000    £000    £000
OPERATING ACTIVITIES
Dividends and interest received
- from investments                                        6,804           6,249
- from associated undertaking                             -               345
Income tax recovered                                      68              40
Interest received                                         79              168
Investment dealing receipts                               470             6,762
Other cash received                                       842             3,372
Payments to and on behalf
of Directors                                             (55)            (50)
Investment dealing payments                              (542)           (6,619)
Other cash payments                                      (1,294)         (2,695)

NET CASH INFLOW FROM
OPERATING ACTIVITIES                                      6,372           7,572

SERVICING OF FINANCE
Interest paid                                    (1,518)          (1,603)
Payments of income tax                           (311)            (255)
Preference dividends paid                        (2)              (2)
                                                         (1,831)         (1,860)
TAXATION
Group relief                                      341              -
Consortium relief                                 110              -
Corporation tax refunded                          -                53
                                                          451             53
CAPITAL EXPENDITURE
Purchases of investments                         (45,251)         (48,310)
Purchases of tangible fixed assets                -               (87)
Sales of investments                              41,297           42,049

NET CASH OUTFLOW FROM
INVESTING ACTIVITIES                                     (3,954)         (6,348)

ACQUISITIONS AND DISPOSALS
Net cash disposed of with subsidiaries           (2,224)           -
Expenses of group reorganisation                  -               (253)
                                                         (2,224)         (253)
EQUITY DIVIDENDS PAID                                    (5,559)         (5,268)

NET CASH OUTFLOW BEFORE
FINANCING                                                (6,745)         (6,104)

FINANCING
Issue of Index-Linked Debenture, less            (27)              14,825
expenses
Debt due within one year
- increase/(decrease) in short-term borrowings    2,490           (5,990)
                                                          2,463           8,835
(DECREASE) / INCREASE IN CASH                            (4,282)          2,731