Final Results

Glasgow Income Trust PLC
18 November 2004

News Release

18 November 2004

Glasgow Income Trust plc
Preliminary Results for the year ended 30 September 2004

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.

                                                 30 September      30 September
                                                       2004              2003
Shareholders' funds                                  £31.61m           £21.16m
Market capitalisation                                £32.32m           £23.60m
Net asset value per share                             64.55p            57.17p
Ordinary share price                                  66.00p            63.75p
Premium (share price to net asset
value)                                                  2.2%             11.5%
Revenue return per share                               4.94p             4.85p
Dividends per share                                    4.85p             4.85p
Total Gearing                                          53.4%             64.3%
Equity Gearing                                          6.3%             14.8%

   • The table below demonstrates the consistent performance of the Company
     against its benchmark index over 1, 3 and 5 years:

Performance                              1 year         3 years         5 years
Net asset value total return              21.4%           22.4%           18.0%
Share price                               11.1%           17.8%           24.5%
FTSE All-Share Index                      15.7%            7.0%           -7.1%

   • Dividends declared and paid have been maintained at the same level as
     last year, 4.85p.
   • At the year end share price of 66.0p, the yield was 7.3%, well above the
     FTSE All-Share Index dividend yield of 3.2%.
   • Total gearing was reduced over the year from 64.3% to 53.4%. This
     gearing is mainly invested in corporate fixed interest securities of
     investment grade rating. Equity gearing reduced from 14.8% to 6.3%.
   • At the year end the share price stood at a premium to net asset value
     per share of 2.2%, reflecting the strength of private investor demand for
     the Company's shares.

For further information please contact:

Mike Balfour, Chief Executive
Glasgow Investment Managers
0141 572 2700

Glasgow Income Trust plc
Annual Report 30 September 2004
Chairman's Statement

Financial Highlights
I am pleased to report continued growth in the Company in the year to 30
September 2004. The net asset value per share increased from 57.17p to 64.55p.
Dividends paid and declared to date have been maintained at the same level as
last year (4.85p) producing a dividend yield of 7.3% based on the share price of
66p at 30 September 2004.

Background
These results were achieved against the background of a recovery in the UK
stockmarket. Improving corporate earnings and the belief that interest rates may
be near their peak in the current cycle outweighed fears about rising world oil
prices. These were the main factors underpinning the 15.7% total return on the
FTSE All-Share Index, the Company's benchmark.

Investment Returns
The total return on net assets for the year was 21.4%, considerably ahead of
benchmark.

The share price total return, at 11.1%, was lower than the return on net assets
because the premium at which the share price stands to net asset value per share
fell from 11.5% to 2.2% over the course of the year.

Share Capital
In last year's Annual Report, it was noted that the Board was considering an
issue of new shares by way of a placing and offer for subscription.

At the Extraordinary General Meeting on 16 December 2003, a special resolution
was passed to increase the authorised share capital from 50,000,000 to
85,000,000 and to authorise the Directors to allot relevant securities pursuant
to the placing and offer.

As noted in the Interim Report, 11,959,162 ordinary shares of 25p were issued on
17 December 2003 at a price of 62p per share, representing a 4% premium to net
asset value per share at that date. After the expenses of the issue, net
proceeds were £7.1 million.

Although this placing was relatively modest, it enhanced net assets per share
for existing shareholders. It should also lead to better liquidity in the shares
and spreads the fixed costs of running the trust over a larger share base.

In order to meet smaller scale regular demand, the Company sought a block
listing facility of 2,850,000 ordinary shares of 25p each in July 2004. Shares
will not be issued pursuant to the block listing unless at the time of issue,
the price of an existing share exceeds the underlying net asset value of that
share. Following the year end 209,384 shares have been issued pursuant to the
block listing at prices ranging from 68p to 69.5p per share.

One of the sources of the strongest demand for the Company's shares comes from
The Glasgow Investment Collection, through which 16.7% of the Company is owned.
The Glasgow Investment Collection is a collection of savings schemes operated by
the Company's Managers. It allows monthly or lump sum investments in an ISA,
TrustPlan or Children's Plan and also allows PEP transfers. It is an effective
and cheap method of saving for the future and I commend the scheme to you.

Dividends
On 5 October 2004 the Board declared a fourth interim dividend of 1.76p per
share which was paid on 29 October 2004 to shareholders on the register at close
of business on 15 October 2004. The total of the four interim dividends declared
for the year to 30 September 2004 is 4.85p, the same level as last year.

Portfolio Profile and Gearing
As disclosed in the Interim Report, £4.1 million of additional zero coupon
finance was raised in January 2004 in order to maintain the Company's gearing
levels following the share issue. This arrangement has a maturity value of £5.4
million repayable in December 2008 which equates to an overall capital charge of
5.7% per annum.

This additional zero coupon finance means that the Company now has two separate
such arrangements. The original zero coupon finance has a maturity value of £14
million in May 2005. The Board is presently reviewing the best way of renewing
this arrangement.

The proceeds from the share issue and the zero coupon finance were used to
increase the size of the Company's existing equity investments and raise the
number of holdings in the corporate bond portfolio.

The distribution of assets shows that equity gearing has been reduced from 14.8%
to 6.3%.

Outlook
The UK economy is likely to slow somewhat over the next twelve months from the
relatively robust levels of GDP growth seen recently. This is the result of
higher interest rates and higher oil and commodity prices. It will inevitably
lead to a lower rate of corporate earnings growth. Many British companies are,
however, producing healthy levels of cash flow and, with balance sheets
relatively conservatively geared, are likely to use this to increase share
buy-backs and grow dividends at a greater level than their underlying earnings.
A healthy level of dividend growth will help the market make progress over the
next twelve months. The biggest concerns remain the potential drag that the oil
price may have on global demand, the weakness of the dollar and the extent of
interest rate rises in the US. The UK stockmarket discounts a great deal of this
risk and presently trades at attractive valuation levels.

Annual Report
The Annual Report will be mailed to shareholders on 22 November 2004. Copies may
be obtained from the managers, Glasgow Investment Managers Limited, Sutherland
House, 149 St Vincent Street, Glasgow G2 5DR after that date.

R.G. Hanna, Chairman


Glasgow Income Trust plc
Consolidated Statement of Total Return
(incorporating the Revenue Account*)
for the year ended 30 September 2004

                                    2004                        2003
                   Revenue        Capital    Total   Revenue   Capital    Total
                      £000           £000     £000      £000      £000     £000

Gains on
investments              -          3,366    3,366         -     2,098    2,098
Income               2,955              -    2,955     2,264         -    2,264
                     -------        -------  -------   -------   -------  -------
Management and
administrative        (429)          (130)    (559)     (260)      (89)    (349)
expenses
                     -------        -------  -------   -------   -------  -------
NET RETURN BEFORE    2,526          3,236    5,762     2,004     2,009    4,013
FINANCE COSTS AND
TAXATION
Finance costs
of borrowings          (19)           (19)     (38)      (17)      (17)     (34)
                     -------        -------  -------   -------   -------  -------
RETURN ON ORDINARY   2,507          3,217    5,724     1,987     1,992    3,979
ACTIVITIES BEFORE
TAXATION
Taxation              (213)            44     (169)     (191)       32     (159)
                     -------        -------  -------   -------   -------  -------
RETURN ON ORDINARY   2,294          3,261    5,555     1,796     2,024    3,820
ACTIVITIES AFTER
TAXATION FOR THE
FINANCIAL YEAR
Dividends on
equity shares       (2,252)             -   (2,252)   (1,795)        -   (1,795)
                     -------        -------  -------   -------   -------  -------
TRANSFER TO             42          3,261    3,303         1     2,024    2,025
RESERVES
                     -------        -------  -------   -------   -------  -------
Return per
share                 4.94p          7.03p   11.97p     4.85p     5.47p   10.32p
Dividends per
share                 4.85p                             4.85p

*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
2003 and 2004 but is derived from those accounts. Statutory accounts for 2003
have been delivered to the Registrar of Companies and those for 2004 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 plc
Group Balance Sheet as at 30 September 2004

                                                             2004         2003
                                                             £000         £000
FIXED ASSETS
Ordinary shares                                            33,608       24,288
Convertibles                                                2,274        1,484
Corporate bonds                                            12,624        9,010
                                                          ---------    ---------
                                                           48,506       34,782
CURRENT ASSETS
Debtors                                                       740          613
Investments of dealing subsidiary undertaking                 118            -
Cash at bank                                                1,236          339
                                                          ---------    ---------
                                                            2,094          952
CREDITORS
Amounts falling due within one year                       (14,647)      (1,487)
                                                          ---------    ---------
                                                          ---------    ---------
NET CURRENT LIABILITIES                                   (12,553)        (535)
                                                          ---------    ---------
                                                          ---------    ---------
TOTAL ASSETS LESS CURRENT LIABILITIES                      35,953       34,247

CREDITORS
Amounts falling due after more than one year               (4,341)     (13,085)
                                                          ---------    ---------
                                                          ---------    ---------
NET ASSETS                                                 31,612       21,162
                                                          ---------    ---------

EQUITY SHAREHOLDERS' FUNDS                                 31,612       21,162
                                                          ---------    ---------

Net asset value per share                                   64.55p       57.17p



Glasgow Income Trust plc
Consolidated Cash Flow Statement for the year ended 30 September 2004

                                                  2004                2003
                                              £000     £000      £000     £000
OPERATING ACTIVITIES
Dividends and interest received from                  2,483              1,959
investments
Deposit interest received                                48                 38
Dealing subsidiary receipts                               -                366
Other cash received                                     291                136
Administrative expenses paid                           (457)              (352)
Payments to and on behalf of Directors                  (33)               (36)
Dealing subsidiary payments                            (118)              (188)
                                                     --------           --------
NET CASH INFLOW FROM OPERATING ACTIVITIES             2,214              1,923
SERVICING OF FINANCE
Interest paid                                           (39)               (61)
TAXATION
Corporation tax paid                                   (160)              (201)
INVESTING ACTIVITIES
Purchases of investments                   (30,922)           (10,178)
Sales of investments                        21,272             12,847
Net premiums received on Zero Coupon         4,108                  -
Finance                                     --------           --------
NET CASH (OUTFLOW)/INFLOW FROM INVESTING             (5,542)             2,669
ACTIVITIES
EQUITY DIVIDENDS PAID                                (2,423)            (1,795)
                                                     --------           --------
                                                     (5,950)             2,535
FINANCING
Issues of shares                             7,147              1,427
Debt due within one year
- decrease in short-term borrowings           (300)            (2,700)
                                            --------           --------
                                                      6,847             (1,273)
                                                     --------           --------
INCREASE IN CASH                                        897              1,262
                                                     --------           --------




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