Final Results

Glasgow Income Trust PLC
10 November 2005



News Release

10 November 2005

Glasgow Income Trust plc
Preliminary Results for the year ended 30 September 2005

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
                                                        2005               2004
Shareholders' funds                                  £62.11m            £31.61m
Market capitalisation                                £65.49m            £32.32m
Net asset value (NAV) per share                       78.71p             64.55p
Ordinary share price                                  83.00p             66.00p
Premium (share price to NAV)                            5.5%               2.2%
Revenue return per share                               5.33p              4.94p
Dividends per share                                    4.85p              4.85p
Total Gearing                                          50.3%              53.4%
Equity Gearing                                          3.0%               6.3%

   • The Company's total return on net assets for the year to 30 September
     2005 was 29.5% and the share price total return was 33.1%. Both were ahead
     of the Company's benchmark, the FTSE All-Share Index (Total Return) which
     returned 24.9%.

   • Dividends declared and paid have been maintained at the same level as
     last year, 4.85p.

   • At the year end the share price was 83.0p, producing a yield of 5.8%.

   • Total gearing was reduced over the year from 53.4% to 50.3%. This
     gearing is mainly invested in corporate fixed interest securities of
     investment grade rating. Equity gearing reduced from 6.3% to 3.0%.

   • At the year end the share price stood at a premium to net asset value
     per share of 5.5%, reflecting the strength of private investor demand for
     the Company's shares and the excellent long term performance record.

   • The Directors have recently announced proposals for a further placing
     and offer for shares.

For further information please contact:

Mike Balfour, Chief Executive
Glasgow Investment Managers
0141 572 2700

Glasgow Income Trust plc
Annual Report 30 September 2005
Chairman's Statement

Financial Highlights
I am pleased to report continued growth in the Company in the year to 30
September 2005. The net asset value per share increased by 21.9% from 64.55p at
30 September 2004 to 78.71p at 30 September 2005. Net assets rose by over £30
million due to the rising value of the Company's investments and the issue of
new shares throughout the year. Dividends paid and declared to date have been
maintained at the same level as last year (4.85p) producing a dividend yield of
5.8% based on the share price of 83p at 30 September 2005.

Investment Returns
The total return on net assets for the year to 30 September 2005 was 29.5%. This
was ahead of the Company's benchmark, the FTSE All-Share Index (Total Return)
which returned 24.9% over the same period.

Over the year there was also an improvement in the rating of the Company's
shares in the stockmarket. The premium at which the share price stood to net
asset value increased from 2.2% at 30 September 2004 to 5.5% at 30 September
2005. As a result, the share price total return at 33.1% was higher than the
return on net assets.

Share Capital
A total of 29,928,280 new ordinary shares were issued by the Company in the year
to 30 September 2005.

In last year's Annual Report, it was noted that a block listing facility of
2,850,000 ordinary shares had been arranged in order to meet smaller scale
regular demand from investors. In the year to 30 September 2005, 1,778,528
shares were issued under this facility, at prices ranging from 68p to 80p per
share, representing premiums of approximately 4% to 8% of the underlying net
asset values of the shares at the time of issue.

Two placings of shares were also completed outwith the block listing facility
with 400,000 shares issued in December 2004 at 74p per share and 6,767,396
shares issued in June 2005 at 75.75p per share. These issues were made at
premiums of approximately 5% to the underlying net asset values and raised
£5,542,000 before expenses.

As noted in the Company's interim report, £15.1 million before expenses was
raised in May 2005 through a placing and open offer for shares at a price of 72p
per share, representing a premium of approximately 3% to the underlying net
asset value per share. A total of 20,982,356 shares were issued under the
placing and offer.

These share issues enhanced assets per share for existing shareholders and
should improve liquidity in the Company's shares. Furthermore, the fixed costs
of running the Company will be spread over a larger share base, now and in the
future. Given these benefits of expansion, the Board are alert to future
expansion opportunities and the Directors have recently announced proposals for
a further placing and offer for shares.

Dividends
On 6 October 2005 the Board declared a fourth interim dividend of 1.76p per
share which was paid on 31 October 2005 to shareholders on the register at close
of business on 14 October 2005. The total of the four interim dividends declared
for the year to 30 September 2005 is 4.85p, the same level as last year.

Initial estimates suggest that it may be possible to increase the dividend paid
in the year to 30 September 2006. However, this should not be taken as a
forecast of profits.

Portfolio Profile and Gearing
As disclosed in the Interim Report, in January 2005 the Company closed the
original zero coupon finance arrangement which was due to expire in May 2005 and
replaced it with a new tranche of zero coupon finance of £11.5 million. This was
done in order to extend the zero coupon finance arrangement for a further five
years and to take advantage of market conditions. This new tranche of zero
coupon finance is due to expire in January 2010 with a maturity value of £15.2
million. This equates to a cost of 5.7% per annum, which is charged wholly to
capital.

In order to maintain the Company's gearing levels following the placing and open
offer, an additional £7.6 million of zero coupon finance was raised in May 2005.
This tranche has a maturity value of £9.8 million repayable in January 2010
which also represents a capital charge of 5.7% per annum over the term of the
financing.

Lastly, an additional £4.1 million of zero coupon finance was raised following
the large placing of shares in June 2005. This tranche of zero coupon finance
also matures in January 2010 at a value of £5.2 million, which equates to a
capital charge of 5.4% per annum over its term.

The distribution of assets shows that 103% of net assets were invested in
equities at 30 September 2005, compared with 106.3% at 30 September 2004.

Shareholders should be reminded that the majority of the gearing obtained by way
of zero coupon finance is invested in investment grade corporate bonds, and not
equities. This enhances the Company's ability to pay out a high level of income,
but also allows for a full exposure to the UK equity market.

Outlook
A continuation of the slowing economic environment is likely in the year ahead.
The interest rate cycle in the UK has probably turned with the recent 0.25% cut
to 4.5%. Further modest cuts in interest rates are expected depending on the
level of inflation. A flat UK housing market and weak retail sales will affect
GDP and reduce growth to between 1.5% and 2.0% in 2005 and into 2006. Global
economic growth appears more resilient and is forecast to be 3.5%, which is only
slightly below the 20 year average.

On valuation measures, UK equities remain undervalued compared to gilts. The
trend to retire equity and increase dividends should continue to benefit
shareholders and the momentum behind merger and acquisition activity is
positive. Many UK institutions have high cash balances to reinvest. Concerns
about US inflation have recently caused a setback in equity markets. In the UK,
this presents an opportunity to invest selectively in shares with yield and
dividend growth.

International Financial Reporting Standards
International Financial Reporting Standards ("IFRS") came into force on 1
January 2005 and the Company's interim report will be published in mid 2006
under the new accounting standards.

One of the major changes under the new standards is the requirement to value
investments at bid price. At 30 September 2005, this would have reduced net
assets by £69,000 or 0.09p per share. There will also be a significant
presentational change in respect of dividends. Under IFRS only dividends which
are irrevocably declared in the financial period are included in the financial
statements. Therefore, in future annual reports the proposed fourth interim
dividend which is declared post year end will not be reflected in the financial
statements. At 30 September 2005, this would have increased net assets by
£1,389,000 or 1.76p per share. It should be noted that this is purely a timing
issue for the accounts and will not affect the dividends paid to shareholders.

The Board is currently working with the Company's Managers to implement the new
reporting.

Annual Report
The Annual Report will be mailed to shareholders on 11 November 2005. 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 2005
                                              2005                         2004
               Revenue£000   Capital £000    Total   Revenue   Capital    Total
                                              £000      £000      £000     £000

Gains on
investments              -          9,235    9,235         -     3,366    3,366
Income               4,104              -    4,104     2,955         -    2,955
                    -------        -------  -------   -------   -------  -------
Management and
administrative        (436)          (189)    (625)     (429)     (130)    (559)
expenses
                    -------        -------  -------   -------   -------  -------
Net return
before               3,668          9,046   12,714     2,526     3,236    5,762
Finance costs
and
taxation
Finance costs
of borrowings          (17)           (17)     (34)      (19)      (19)     (38)
                    -------        -------  -------   -------   -------  -------
Return on
ordinary             3,651          9,029   12,680     2,507     3,217    5,724
activities
before
taxation
Taxation              (388)            62     (326)     (213)       44     (169)
                    -------        -------  -------   -------   -------  -------
Return on
ordinary             3,263          9,091   12,354     2,294     3,261    5,555
activities
after
taxation for
the
financial
year
Dividends on
equity shares       (3,235)             -   (3,235)   (2,252)        -   (2,252)
                    -------        -------  -------   -------   -------  -------
TRANSFER TO             28          9,091    9,119        42     3,261    3,303
RESERVES
                    -------        -------  -------   -------   -------  -------
Return per
share                 5.33p         14.84p   20.17p     4.94p     7.03p   11.97p
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
2004 and 2005 but is derived from those accounts. Statutory accounts for 2004
have been delivered to the Registrar of Companies and those for 2005 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 2005

                                                             2005         2004
                                                             £000         £000
FIXED ASSETS
Ordinary shares                                            63,964       33,608
Convertibles                                                5,338        2,274
Corporate bonds                                            24,059       12,624
                                                          ---------    ---------
                                                           93,361       48,506
CURRENT ASSETS
Debtors                                                     1,371          740
Investments of dealing subsidiary undertaking                   -          118
Cash at bank                                                  239        1,236
                                                          ---------    ---------
                                                            1,610        2,094
CREDITORS
Amounts falling due within one year                        (3,705)     (14,647)
                                                          ---------    ---------
                                                          ---------    ---------
NET CURRENT LIABILITIES                                    (2,095)     (12,553)
                                                          ---------    ---------
                                                          ---------    ---------
TOTAL ASSETS LESS CURRENT LIABILITIES                      91,266       35,953

CREDITORS
Amounts falling due after more than one year              (29,161)      (4,341)
                                                          ---------    ---------
                                                          ---------    ---------
NET ASSETS                                                 62,105       31,612
                                                          ---------    ---------

EQUITY SHAREHOLDERS' FUNDS                                 62,105       31,612
                                                          ---------    ---------

Net asset value per share                                   78.71p       64.55p



Glasgow Income Trust plc
Consolidated Cash Flow Statement for the year ended 30 September 2005

                                                       2005               2004
                                             £000      £000      £000     £000
OPERATING ACTIVITIES
Dividends and interest received from                  2,881              2,483
investments
Deposit interest received                                99                 48
Dealing subsidiary receipts                             543                  -
Other cash received                                     441                291
Administrative expenses paid                           (511)              (457)
Payments to and on behalf of Directors                  (39)               (33)
Dealing subsidiary payments                            (327)              (118)
                                                     --------           --------
NET CASH INFLOW FROM OPERATING ACTIVITIES             3,087              2,214
SERVICING OF FINANCE
Interest paid                                           (27)               (39)
TAXATION
Corporation tax paid                                   (225)              (160)
INVESTING ACTIVITIES
Purchases of investments                  (52,414)            (30,922)
Sales of investments                       18,703              21,272
Proceeds of new zero coupon finance        23,146               4,108
Cost to close original zero coupon        (13,783)                  -
finance                                    --------            --------
NET CASH OUTFLOW FROM INVESTING                     (24,348)            (5,542)
ACTIVITIES
EQUITY DIVIDENDS PAID                                (2,708)            (2,423)
                                                     --------           --------
                                                    (24,221)            (5,950)
FINANCING
Issues of shares                           21,374               7,147
Debt due within one year
- increase/(decrease) in short-term         1,850                (300)
borrowings                                 --------            --------
                                                     23,224              6,847
                                                     --------           --------
(DECREASE)/INCREASE IN CASH                            (997)               897
                                                     --------           --------




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