Final Results

Glasgow Income Trust PLC
16 November 2007


News Release


16 November 2007


Glasgow Income Trust plc
Preliminary Results for the year ended 30 September 2007


Glasgow Income Trust's principal objective is to provide shareholders with a
high level of income and to obtain growth in both income and capital over the
longer term.  The Company is managed by Glasgow Investment Managers Limited, a
subsidiary of Aberdeen Asset Management plc.


                                                        30 September 2007   30 September 2006
Total Investments                                                 £171.4m             £125.9m
Shareholders' funds                                               £115.1m              £87.0m
Market capitalisation                                             £111.6m              £91.4m
Net asset value (NAV) per share                                     94.4p               92.6p
Ordinary share price                                                91.5p              97.25p
(Discount)/Premium (share price to adjusted NAV)*                  (1.1)%                7.1%
Revenue return per share                                            5.43p               5.31p
Dividends per share                                               5.2015p               5.05p
Total expense ratio                                                 1.16%               1.16%
Total Gearing                                                       49.0%               44.7%
Equity Gearing                                                       6.3%                3.4%



* IFRS NAV excluding dividend adjustment of 1.8865p (2006 - 1.81p)

•   Dividends declared in respect of the year ended 30 September 2007 were
    5.2015p, an increase of 3% from 2006.

•   At the year end the share price was 91.5p, producing a yield of 5.7%
    compared to the yield on the FTSE All-Share Index, the Company's benchmark, 
    of 2.9%.

•   The Company increased its net assets in the year to 30 September 2007
    to £115.1 million compared to £87.0 million as at 30 September 2006. This 
    was achieved through a combination of positive performance and the issue of
    27,957,475 shares. The majority of these shares were issued through a 
    placing and open offer in November 2006 plus the reconstruction of Gartmore 
    High Income Trust plc

•   The total return on net assets for the year was 7.4% with the total
    return on the share price being -1.0%. The total return on the FTSE 
    All-Share Index, the Company's benchmark, was 12.2%.





For further information please contact:

Kirsty Hussain/Graeme McDonald
Glasgow Investment Managers
0141 572 2700


Glasgow Income Trust plc
Annual Report 30 September 2007
Chairman's Statement



Financial Highlights

I am pleased to report that in the year to 30 September 2007, the Company's net
asset value continued to grow both through positive performance and the issue of
shares. The Board has declared dividends totalling 5.2015p in respect of the
financial year to 30 September 2007, an increase of  3% from the previous year.
This dividend produces a yield of 5.7% at 30 September 2007, significantly
higher than the 2.9% yield on the FTSE All-Share Index, the Company's benchmark
and the 4.0% on the FTSE 350 Higher Yield Index.



The objective of the Company is to provide shareholders with a high level of
income and to obtain growth in both income and capital over the longer term.
The financial structure is such that by the use of zero coupon finance, while
enhancing the revenue account, it puts greater demands on the capital account.



Investment Returns

The total return on net assets for the year was 7.4% compared to the total
return on the FTSE All-Share Index, the Company's benchmark, of 12.2%.  Equities
were marginally behind the benchmark but given a background of rising interest
rates, the fixed interest stocks, predominantly the preference shares, proved a
negative to performance. The zero coupon finance also contributed to this
underperformance as the total liability increased at an above trend rate due to
the recent volatility in credit markets.



The Company's share price has enjoyed a premium to net asset value over a
substantial period. However at the year end it fell back to a discount of 1.1%
and as a result the share price total return was also behind the benchmark at
-1.0% for the year.



Earnings and Dividends

The Board has declared dividends totalling 5.2015p in respect of the financial
year to 30 September 2007 which, as mentioned above, is, an increase of 3% from
the previous 5.05p.  Under International Financial Reporting Standards the
dividends accounted for in this report are 5.125p, representing the fourth
interim dividend of the 2006 financial year of 1.81p per share  together with
the first four interim dividends of the 2007 financial year totalling 3.315p per
share. The fifth interim dividend of the 2007 financial year of 1.8865p per
share paid on 31 October 2007 will be accounted for in the 2008 financial year.



Share Capital

In the interim report I highlighted the Company had issued 27,957,475 shares in
the six month period to 31 March 2007. This was achieved through a placing and
open offer in November 2006 and the reconstruction of the Gartmore High Income
Trust in December 2006 which allowed their shareholders to roll their investment
into Glasgow Income Trust. This rollover was the second time in two years the
Company had been selected for such a scheme. In addition there was a further
placing of 3,450,000 shares issued in January 2007 and 59,409 shares were issued
at prices ranging from 106.0p to 106.5p under the Company's existing
blocklisting authority. All of the above issues were at a premium to net asset
value.



Portfolio Profile and Gearing

As disclosed in the interim report the Company took out three new tranches of
zero coupon finance totalling £15.1 million in the year to maintain the
Company's gearing after the various share issues. The distribution of assets
shows that 106.3% of net assets were invested in equities at 30 September 2007,
a small rise from the 103.4% invested in equities as at 30 September 2006.Total
gearing in the year also rose from 144.7% to 149.0%.



Substantially all of the Company's gearing continues to be invested in
investment grade corporate bonds and preference shares, and not equities. The
bonds, together with the other fixed interest securities in the portfolio, make
a major contribution to the high level of income paid by the Company while also
allowing a full exposure to the UK equity market.



AIC/JP Morgan Claverhouse VAT Test Case

The European Court of Justice ("ECJ") opined on the case brought by the AIC and
JP Morgan Claverhouse against Her Majesty's Revenue and Customs ("HMRC") on 28
June 2007.  This case was regarding whether Value Added Tax ("VAT") should be
applied to the management fees of investment trust companies.  The ECJ has
decided that management fees should be exempt from VAT. We understand that HMRC
has now decided not to appeal against this case to the UK VAT Tribunal and
therefore protective claims which have been made in relation to the Company will
be processed in due course. The Board is currently in the process of quantifying
the potential repayment that should be due. However, the amount the Company will
receive, the period to which it will refer, and the timescale for receipt are
all uncertain and hence the Company has made no provision in these financial
statements for any such repayment.



Board

Mr Martin Griffiths, currently Group Finance Director of Stagecoach Group plc,
was appointed to the Board on 8 November 2007.  I welcome him and the Board look
forward to working with him.  In accordance with the Articles of Association, Mr
Griffiths requires to be elected at the forthcoming Annual General Meeting.  The
Board recommends his election.



Investment Manager

On 24th August 2007 Glasgow Investment Managers Limited, the Company's Managers,
were acquired by Aberdeen Asset Managers plc. Aberdeen is a global investment
manager and as such, has considerable experience in the investment trust sector.
The Board has agreed that Aberdeen will manage the Company going forward and
is confident they will be able to build on the success achieved by Glasgow
Investment Managers Limited.  The Glasgow investment team will be joining the
Aberdeen Group to ensure continuity of management.



Outlook

Since news of the global credit crunch hit markets in the summer, equities have
staged a strong recovery. Clearly, the actions of Central Banks to improve
liquidity and reduce interest rates in the US are behind the rally. However,
there remains an underlying anxiety that over time, the problems encountered by
the financial sector could ripple out to the wider economy. The state of the
housing market is important to consumer confidence and there is evidence that in
some areas the market is slowing. The corporate sector is in a relatively strong
financial position as it faces a slow down in economic growth. Private equity
involvement in acquisition activity through highly leveraged deals is likely to
be reduced.



The Board has reviewed income forecasts for the year to 30 September 2008 and,
subject to any unforeseen circumstances, hopes to continue with a progressive
dividend policy in the forthcoming year. However this should not be taken as a
forecast of profits.



Annual Report

The Annual Report will be mailed to shareholders on 20 November 2007.  Copies
may be obtained from the managers, Glasgow Investment Managers Limited,
Sutherland House, 149 St Vincent Street, Glasgow  G2 5DR and Aberdeen Asset
Managers plc, Donaldson House, 97 Haymarket Terrace, Edinburgh EH12 5HD after
that date.








R.G. Hanna, Chairman
16 November 2007





Glasgow Income Trust plc
Consolidated Income Statement
for the year ended 30 September 2007

                                                 2007                            2006
                                      Revenue    Capital      Total    Revenue     Capital   Total
                                       Return     Return       £000     Return      Return    £000
                                         £000       £000                  £000        £000
Gains
Gains on investments                        -      2,645      2,645          -      11,127  11,127
Revenue
Dividend Income                        4,818,          -      4,818      3,338           -   3,338
Interest income from investments        2,169          -      2,169      1,621           -   1,621
Deposit Interest                          119          -        119        109           -     109
Traded Options                            690          -        690        558           -     558
Other Income                                1          -          1          -           -       -
Net (losses)/gains of dealing            (52)          -       (52)        193           -     193
subsidiary   
                                        7,745      2,645     10,390      5,819      11,127  16,946
Expenses
Investment management fee               (519)      (519)    (1,038)      (334)       (334)   (668)
Other administrative expenses           (227)          -      (227)      (257)           -   (257)
Finance cost of borrowings               (79)       (79)      (158)       (38)        (38)    (76)
Zero Coupon Finance Costs                   -    (2,455)    (2,455)          -     (1,380) (1,380)
                                        (825)    (3,053)    (3,878)      (629)     (1,752) (2,381)
Return before Tax                       6,920      (408)      6,512      5,190       9,375  14,565
Tax Expense                             (589)        179      (410)      (540)         112   (428)
RETURN ATTRIBUTABLE TO ORDINARY
SHAREHOLDERS OF THE COMPANY             6,331      (229)      6,102      4,650       9,487  14,137


Earnings per ordinary share                                    5.2p                          16.2p
(pence)



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



All revenue and capital items in the above statement derive from continuing
operations.



No operations were acquired or discontinued in the year.



The financial information set out above and on the following page does not
constitute the Company's statutory accounts for the years ended 30 September
2006 and 2007 but is derived from those accounts. Statutory accounts for 2006
have been delivered to the Registrar of Companies and those for 2007 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.






Glasgow Income Trust
Consolidated & Company Balance Sheets as at 30 September 2007

                                                             Group                       Company
                                                      2007           2006           2007           2006
                                                      £000           £000           £000           £000
NON CURRENT ASSETS
Ordinary shares                                      122,306        89,955         122,306        89,955
Convertibles                                          2,194          5,247          2,194          5,247
Corporate bonds                                      35,339         28,526         35,339         28,526
Other fixed interest                                 11,576          2,175         11,576          2,175


SECURITIES AT FAIR VALUE                             171,415        125,903        171,415        125,903
THROUGH PROFIT OR LOSS
Zero coupon finance derivatives at fair value        31,862         12,845         31,862         12,845
Subsidiary                                              -              -              5              5
                                                     203,277        138,748        203,282        138,753

CURRENT ASSETS
Trade and other receivables                            12            1,041           478           1,465
Accrued Income and prepayments                        2,202          1,792          2,202          1,792
Investments of dealing subsidiary                      673            725             -              -
Cash and cash equivalents                              138            102            138            102
                                                      3,025          3,660          2,818          3,359


TOTAL ASSETS                                         206,302        142,408        206,100        142,112


CURRENT LIABILITIES
Trade and other payables                              (714)         (1,509)         (756)         (1,466)
Short-term borrowings                                 (422)          (400)          (422)          (400)
                                                     (1,136)        (1,909)        (1,178)        (1,866)


NON CURRENT LIABILITIES
Zero coupon finance derivatives at fair value       (90,089)       (53,491)       (90,089)       (53,491)


TOTAL LIABILITIES                                   (91,225)       (55,400)       (91,267)       (55,357)


NET ASSETS                                           115,077        87,008         114,833        86,755
ISSUED CAPITAL AND RESERVES ATTRIBUTABLE TO
ORDINARY SHAREHOLDERS' OF THE PARENT
Called up share capital                              30,486         23,496         30,486         23,496
Share premium account                                53,205         32,715         53,205         32,715
Special reserve                                       5,000          5,000          5,000          5,000
Retained Earnings
Realised capital reserve                             17,097          9,080         17,097          9,080
Unrealised capital reserve                            5,670         13,916          5,670         13,916
Revenue reserve                                       3,619          2,801          3,375          2,548
NET ASSETS ATTRIBUTABLE TO                           115,077        87,008         114,833        86,755
ORDINARY SHARHOLDERS'

Net asset value per ordinary share (pence)            94.4p          92.6p





Glasgow Income Trust plc
Consolidated & Company Cash Flow Statement for the year ended 30 September 2007

                                                                      2007                     2006
                                                                £000         £000        £000        £000
CASH FLOWS FROM OPERATING ACTIVITIES
Purchase of Investments                                         (160,450)                (54,970)
Sale of Investments                                               117,443                  33,287
Zero Coupon Finance                                                15,126                  10,108

                                                                             (27,881)                (11,575)
Investment income received                                                      6,776                   4,634
Deposit interest received                                                         120                     109
Dealing subsidiary receipts                                                         -                      62
Other cash received                                                               834                     553
Administrative expenses paid                                                  (1,213)                   (866)
Dealing subsidiary payments                                                         -                   (594)

CASH GENERATED FROM OPERATIONS                                               (21,364)                 (7,677)
Interest Paid                                                                   (151)                    (83)
Taxation                                                                        (426)                   (374)

NET CASH OUTFLOW FROM OPERATING ACTIVITIES                                   (21,941)                 (8,134)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds of Issues of shares                                                   27,468                  13,599
Equity dividends paid                                                         (5,513)                 (4,152)

NET CASH INFLOW FROM FINANCING ACTIVITIES                                      21,955                   9,447

NET INCREASE IN CASH AND
CASH EQUIVALENTS                                                                   14                   1,313

CASH  & CASH EQUIVALENTS AT START OF PERIOD                                      (298)                 (1,611)

CASH  & CASH EQUIVALENTS AT END OF PERIOD                                       (284)                   (298)

Cash & Cash Equivalents comprise:
Cash  & Cash Equivalents                                                          138                     102
Short Term Borrowings                                                           (422)                   (400)
                                                                                (284)                   (298)






Consolidated Statement of Changes in Equity
For the year ended 30 September 2007

                                                                 Realised   Unrealised  Retained
                                  Share      Share     Special   Capital     Capital     Revenue
                                 Capital    Premium    Reserve   Reserve     Reserve     Reserve    Total
                                   £000       £000      £000       £000        £000       £000       £000

As at 30 September 2005           19,726     22,886     5,000     3,981       9,528       2,303     63,424

Revenue profit for the year         -          -          -         -           -         4,650     4,650
Capital profits for the year        -          -          -       5,099       4,388         -       9,487
Equity dividends                    -          -          -         -           -        (4,152)   (4,152)
Issue of Share Capital            3,770      9,829        -         -           -           -       13,599

As at 30 September 2006           23,496     32,715     5,000     9,080       13,916      2,801     87,008

Revenue profit for the year         -          -          -         -           -         6,331     6,331
Capital profits for the year        -          -          -       8,017      (8,246)        -       (229)
Equity dividends                    -          -          -         -           -        (5,513)   (5,513)
Issue of Share Capital            6,990      20,490       -         -           -           -       27,480

As at 30 September 2007           30,486     53,205     5,000     17,097      5,670       3,619    115,077






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