Interim Results - Half Year to 30 September 1999

Shires Income PLC
25 November 1999


                         SHIRES INCOME PLC
                                 
                     HEALTHY ECONOMIC OUTLOOK
                 LOOKS PROMISING FOR UK COMPANIES

         Results for the Half Year Ended 30 September 1999


 Shires Income plc, with total assets of £157.6 million aims to
 provide shareholders with a high level of income together with
 growth of both income and capital from a portfolio substantially
 invested in UK equities.
                                 
*    The total return on net assets was -3.2% for the six months
 to 30 September 1999, compared with a total return of -1.2% on the
 FTSE All-Share Index.

*    The return to shareholders was +2.3%, better than the return
 on net assets due to a reduction in the discount of share price to
 underlying net asset value per share to 1.5% at 30 September 1999.

*    A second interim dividend has been declared of 4.3p per
 share, making dividends for the year to date 8.6p, compared with
 8.4p last year (excluding the special dividend).

*    An EGM has been convened for 14 January 2000 to consider a
 resolution to amend the Articles of Association. This will permit
 the Company to buy back its own shares without loss of investment
 company status.

*    The prospect of healthy UK economic growth with low inflation
 should provide attractive investment opportunities in UK ordinary
 shares which currently appear to offer good value.




For further information please contact:

David Williams, Managing Director
Glasgow Investment Managers                  0141 572 2700




                                                                                
  
                            Shires Income plc
                                    
                           Interim Report 1999
                                    
                           Chairman's Statement
                                    
Background

After a significant advance in the second half of the Company's last
financial year, to 31 March 1999, UK ordinary share prices struggled to
progress in the six months to 30 September 1999.  For a while cyclical
stocks performed well, as falling interest rates encouraged forecasts of
faster UK output growth.  Subsequently, however, the appearance of
inflationary pressures influenced a change in monetary policy and the
stockmarket, led by the cyclical stocks, retreated in response to the
introduction of higher interest rates.

The total return on the FTSE All-Share Index over the half year was -
1.2%.

Investment Returns

The total return on net assets was -3.2%.  The Company's investments in
cyclical stocks reacted adversely to rises in interest rates towards the
end of the period under review.

The return to shareholders, at +2.3%, was better than the return on net
assets, largely because of an improvement in the rating of the Company's
shares.  The discount of share price to underlying net asset value per
share fell from 6.6% at 31 March 1999 to 1.5% at 30 September 1999.

Dividends

The Board has declared a second interim dividend of 4.3p per share, to be
paid on 31 January 2000 to shareholders on the register at close of
business on 10 January 2000.  A first interim dividend of 4.3p was paid
on 29 October 1999.  Dividends declared and paid to date in respect of
the current year thus total 8.6p per share.

Comparison with the level of dividends paid last year is complicated by
the fact that the second interim dividend then included a Foreign Income
Dividend ('FID') and a special additional payment made possible by paying
part of the dividend as a FID.  As stated in the Chairman's Statement in
the last Interim Report, the dividend which would have been declared in
the absence of the FID was 4.2p. The total of the first and second
interim dividends last year, therefore, would have been 8.4p.

Portfolio Profile

Towards the end of the Company's year ending 31 March 1999, the exposure
to ordinary shares was reduced as the UK stockmarket rose and the level
of gearing fell to 22.0% at that date as short-term borrowings were
repaid.  When share prices weakened in response to interest rate rises in
the third quarter of 1999 the exposure to equities was increased again.
The investments made at that time were financed by short-term borrowings
and gearing rose to 25.4% at 30 September 1999.

Amendment of Articles of Association

In the Annual Report for the year ended 31 March 1999 I referred to the
arrangements we were making to permit the Company to buy back its own
shares. As completion of these could have affected the Company's
investment company status, we deferred submitting a petition to the Court
to reduce the share premium account and create a special reserve,
anticipating amendments to the relevant legislation. In November 1999 a
statutory instrument came into force making it possible for an investment
company to redeem or purchase its own shares out of its capital profits.
It is therefore proposed that the Company's Articles of Association be
amended to reflect this change and also to incorporate current Stock
Exchange requirements. A separate circular is being sent to shareholders
convening an Extraordinary General Meeting for 14 January 2000, at which
a resolution to amend the Articles will be considered. Once the Articles
have been amended any buying back of shares will be made through capital
reserves and it will not be necessary to reduce the share premium
account. The Company will only buy back shares at a discount to the
prevailing net asset value per share, in order to enhance value for
shareholders.

Outlook

Although forecasts of UK economic growth over the next two years have
been rising recently, it appears that inflation will remain low, due to
competitive conditions in the markets for goods and services and active
management of UK monetary policy.  This prospect of healthy growth
against a stable background should provide attractive opportunities for
investment in the ordinary shares of UK companies, which currently appear
to offer good value.



The Interim Report will be mailed to shareholders on 1 December 1999.
Copies may be obtained from the Managers, Glasgow Investment Managers
Limited, Sutherland House, 149 St. Vincent Street, Glasgow G2 5DR after
that date.


AJR Izat
Chairman
                                    
                                    
                 Consolidated Statement of Total Return
                   (incorporating the Revenue Account)
                for the half year ended 30 September 1999
                                                                
                             Half year to 30         Half year to 30
                             September 1999           September 1998
                               (unaudited)       as restated (unaudited)
                                                  (see note 1 on page 7)
                          £000    £000           £000    £000    £000
                                          £000
                         Revenue  Capit          Reven   Capital 
                                  al      Total  ue              Total
Gains less losses on         -   (8,360)  (8,360) -    (16,848) (16,848)
investments 
Income from investment   4,405       -    4,405  3,629     -     3,629
activity (note 1)         
Investment management    1,866       -    1,866  1,497     -     1,497
income (note 1)                           
Investment management   (1,217)      -    (1,217) (1,048)  -     (1,048)      
  expenses                                                       
Net investment             649       -    649        449    -     449
management income                         
Administrative expenses  (304)    (160)   (464)   (370)    (150)  (520 )
                                                                 
Group operating return   4,750    (8,520) (3,770)3,708  (16,998) (13,290)
                                          
Associated undertaking     345    1,234   1,579    327   (3,178)  (2,851)
                                                                
Net return before                                                
finance costs
 and taxation           5,095    (7,286)  (2,191)  4,035 (20,176)(16,141)
Part disposal of             -    (440)   (440)       -      -          -
subsidiary undertaking                    
Finance costs of                                                 
borrowings:
 Group                  (751)    (292)    (1,043)  (844 )  (621) (1,465)
 Associated undertaking (69)      (69)    (138)     (67)    (67)  (134 )
Return on ordinary                                               
activities
     before taxation     4,275   (8,087)  (3,812)   3,124 (20,864)(17,740)
Taxation (note 2)          480    -       480        606    -    606
Return on ordinary                                               
activities
     after taxation for  3,795   (8,087)  (4,292)  2,518 (20,864)(18,346)
Preference dividend          1       -         1    1      -          1
Minority equity interest    206     -     206      44    -       44
Return attributable to                                           
     equity shareholders 3,588   (8,087)  (4,499) 2,473 (20,864)(18,391)
Dividends on equity       2,550    -      2,550   2,564    -       2,564
Transfer to/(from)       1,038   (8,087)  (7,049) (91)  (20,864)(20,955)
Return per ordinary                                              
share (note 3)
 - undiluted             12.10p  (27.27)p (15.17)p 8.73p (73.65)p(64.92)p
 - fully diluted                                   8.44p (70.20)p(61.76)p
Dividends per ordinary   8.60p                     9.05p           
share (note 4)


                   Distribution of Assets
                    at 30 September 1999
                                                              
                        Valuation at   Valuation at     Net      
                        30 September   31 March 1999   Purcha Appreciat
                            1999                        ses/    ion/
                        (unaudited)   (see note 6 on   (sales)(deprecia
                                          page 8)               tion)
                         £m      %      £m        %       £m        £m
                                                                   
Associated                                                         
undertaking:
Shires Smaller         11.6       8.6    10.4      7.3       -      1.2
Companies (note 5)
Other listed                                                       
investments:
Ordinary shares        135.4     100.6   138.4    97.7     3.9     (6.9)
Convertibles           13.2       9.8    13.7      9.7       -     (0.5)
Other fixed interest    8.7       6.5    9.7       6.9     (0.2 )  (0.8)
                       168.9     125.5   172.2    121.6    3.7     (7.0 )
Unlisted investments    0.5       0.4    0.8       0.6     (0.4 )   0.1
                       169.4     125.9   173.0    122.2    3.3     (6.9 )
Tangible fixed assets   0.2       0.1    0.2      0.1              
Net current            (12.0)    (8.9)    (9.0 )  (6.4 )            
liabilities                    
Total assets                                                         
     (less current     157.6     117.1   164.2     115.9             
liabilities)
Index-Linked Debenture (22.2)    (16.5)   (22.1)   (15.6)             
Stock                        
Minority equity        (0.8 )   (0.6)    (0.4 )    (0.3 )            
interest                       
Net assets             134.6     100.0   141.7     100.0
                                                                   
Representing:                                                      
                                                                   
Share capital and      134.6             139.1                      
reserves                              
                                                                   
Convertible Unsecured                                              
 Loan Stock               -               2.6
                       134.6             141.7                     
                                                                  
Net asset value per ordinary share                             
(note 3)
                                                                  
     - undiluted       454.0p            490.7p                   
                                                                  
     - fully diluted                     477.8p                   



           Analysis of Equity Portfolio
                         
               at 30 September 1999
                                            
                                  30      31 March
                              September     1999
                                 1999
                                  %          %
                                              
                                            
Resources and mineral            6.1        3.2
extraction
Basic industries                 3.7         1.5
General industrials              9.0        11.5
Non-cyclical consumer goods     10.1        13.9
Cyclical services               22.5        24.3
Non-cyclical services           11.5        13.4
Utilities                       11.5         8.7
Financials and investment       25.6        23.5
trusts
                               100.0        100.0
                                            

Notes:

1. Income                               1999           1998
                                        £000           £000
PARENT UNDERTAKING AND
INVESTMENT DEALING SUBSIDIARY
Income from listed investments
Franked investment income (see below)   3,618         2,637
UK unfranked investment income            112            80
Foreign income dividends (see below)        -           526
                                        _____         _____
                                        3,730         3,243
Other income from investment activity
Interest receivable                        29            69
Traded option premiums (see below)        599           584
Underwriting commission                    37             -
Profits less losses of dealing subsidiary  10          (267)
                                        _____         _____
                                          675           386
                                        _____         _____
                                        4,405         3,629
INVESTMENT MANAGEMENT SUBSIDIARY
Investment management fees              1,830         1,453
Interest receivable                        36            44
                                        _____         _____
                                        1,866         1,497
Total income comprises:
Dividends                               3,730         3,243
Interest                                   65           113
Other income from investment activity     646           317
Investment management fees              1,830         1,453
                                        _____         _____
TOTAL INCOME                            6,271         5,126

Franked investment income includes special dividends totalling
£451,000 (1998 - £113,000).  Foreign income dividends includes
special dividends totalling £Nil (1998 - £177,000).

There has been a change in the income recognition policy in
respect of income from traded options.  These were previously
recognised as income whenever the options expired or were
exercised or assigned.  The new policy is to recognise them as 
income evenly over the period from the date they are written to 
the date when they expire or are exercised or assigned. As a 
result of this new policy, revenue on ordinary activities after 
taxation for the period is £74,000 higher (period to 30 September 
1998 - £193,000 lower).

                                                            
2. Taxation
The  taxation  charge included tax credits on  franked  investment
income  of  20%  of  the gross amount of     dividends  receivable
before  5  April 1999 and 10% of gross dividends receivable  after
that date.


3.   Return per Share and Net Asset Value per Share

In  April  1999,  the  Company served notice requiring  compulsory
conversion   of  the  remaining  £1,691,452  of  11%   Convertible
Unsecured  Loan  Stock  2003/04.  The holders  of  £361  of  Stock
elected  to  be  repaid at par in cash and  all  other  Stock  was
converted  into 845,726 ordinary shares. No fully diluted  returns
per  share  are  being reported for this period as  they  are  not
materially different from the undiluted returns.

The  1998  figures for fully diluted returns per share  have  been
restated  in  accordance  with  Financial  Reporting  Standard  14
'Earnings per Share'.


4.   Dividends per ordinary share
                                         1999           1998
                                            p              p

First interim                            4.30           4.20
Second interim
 - paid as an ordinary dividend          4.30           0.95
 - paid as a foreign income dividend        -           3.25
                                         ____           ____
                                         8.60           8.40
 Special dividend                           -           0.65
                                         ____           ____
                                         8.60           9.05

5.    Shires Smaller Companies
The investment in Shires Smaller Companies plc ordinary shares  is
stated at net asset value.  The market value of this investment at
30 September 1999 was £8,540,000.  In addition a subsidiary of the
Company holds 1,047,801 warrants to subscribe for ordinary  shares
in Shires Smaller Companies.


6. Assets at 31 March 1999
Subject to the unaudited restatement of the underlying figures  as
described in note 1 above, the information relating to the  assets
as at 31 March 1999 is an extract from the latest audited accounts
which  have  been  delivered to the Registrar  of  Companies;  the
report  of the auditors on these accounts was unqualified and  did
not  contain  a  statement under Section  237(2)  or  (3)  of  the
Companies Act 1985.