Final Results

Glasgow Income Trust PLC
14 November 2003



News Release


14 November 2003


Glasgow Income Trust plc

Preliminary Results for the year ended 30 September 2003


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.

                                                     2003              2002


Total assets less current liabilities             £34.25m           £31.66m

Shareholders' funds                               £21.16m           £19.14m

Market capitalisation                             £23.60m           £21.19m

Net asset value per share                           57.17p           51.70p

Ordinary share price                                63.75p           57.25p

Premium (share price to net asset value)             11.5%            10.7%

Revenue return per share                             4.85p            4.92p

Dividends per share                                  4.85p            4.85p

Gearing                                              64.3%            81.8%


• The total return on net assets in the year was 20.0% against 16.7% on
  the FTSE All-Share Index.

• Final dividend of 1.76p per share brings total dividends for year to
  4.85p, the same as last year.

• At the year end share price of 63.75p, the yield was 7.6%, well above
  the FTSE All-Share Index dividend yield of 3.4%.

• Gearing was reduced over the year from 81.8% to 64.3%, mainly invested
  in corporate fixed interest securities of investment grade.

• The share price stands at a healthy premium to net asset value per
  share, reflecting the strength of private investor demand for the Company's
  shares.

• The Board is reviewing the possibility of an issue of new shares by
  way of a placing and offer for subscription at a premium to net asset value.


For further information please contact:


David Williams, Managing Director

Glasgow Investment Managers

0141 572 2700


Glasgow Income Trust plc

Annual Report 30 September 2003

Chairman's Statement


Background

The principal feature of the first half of the Company's financial year was
share price volatility, as investors reacted to the growing prospect of conflict
in Iraq. In the second half, however, with the war concluded, stockmarkets
around the world made progress as sentiment responded to a recovery in business
activity and improving economic forecasts.

Investment Returns

Against a sometimes difficult background, the Company's portfolio performed well
and the total return on net assets for the year was exactly 20.0%, which
compares with the return of 16.7% on the FTSE Actuaries All-Share Index, the
Company's benchmark.

Dividends

The Board is recommending a final dividend of 1.76p per ordinary share, which
brings total dividends for the year to 4.85p per share, the same level as last
year.


If approved at the Annual General Meeting on 16 December 2003 the final dividend
will be paid on 31 December 2003 to shareholders on the Register at close of
business on 5 December 2003.

Dividend Payment Policy

Please note that the final dividend is being paid two months earlier than usual.
This reflects the introduction of a new dividend payment policy.


In my statement last year I drew shareholders' attention to the apparent anomaly
that a small transfer from reserves was required to pay the dividend although it
was covered by the reported Revenue Return per share. This situation arose
because new shares issued during the year ranked for dividends paid in respect
of income earned before the new capital was subscribed.


To avoid this happening in future the Board has decided to pay the dividend from
income earned in each quarter at the end of the first month of the following
quarter. The first interim dividend for next year, therefore, will be paid on 30
January 2004 and, to avoid complications arising from bringing forward that
payment, the final dividend for the year to 30 September 2003 will be paid on 31
December 2003. The timetable of future dividend payments is shown on Page 41 of
the Annual Report.


Implementation of the new policy requires one further change in practice. As a
final dividend may not be paid without the approval of shareholders and that
cannot be obtained in time to pay a dividend within one month of the fourth
quarter's end, the Board has decided to pay four interim dividends each year in
future, but no final dividend. These new arrangements will not affect the level
of total annual dividends paid per share.

Portfolio Profile

Over the year total gearing fell from 81.8% to 64.3% of net assets, due partly
to sales of securities and partly to the rise in the value of net assets. Equity
gearing fell from 20% to 14.8%. The major portion of gearing, 49.5% at 30
September 2003, is invested in the corporate fixed interest and convertible
securities which contribute a large proportion of the income which the Company
distributes.


The principal component of the Company's gearing is Zero Coupon Finance, raised
in May 2000 through a series of option transactions on the FTSE 100 Index and
repayable in May 2005. The structure of the strategy is such that the amount of
the liability is unaffected by movements of the Index and the counterparty in
the transactions is a leading global bank.


As the initial proceeds, £9.9 million, the maturity value, £14 million, and the
term of the financing, five years, are all known, so is the annualised cost,
7.19% per annum. Although the total cost of funds raised is thus predetermined,
its incidence over time and the final outcome in respect of each constituent
option are not, both being determined by movements in market prices. Over the
period from May 2000, when the funds were raised, to 30 September 2003 the
actual financing cost was 8.7% per annum, leaving the balance to maturity in May
2005 to be provided at 4.1% per annum.


The net movement in the value of the options involved is charged to capital
reserve and there is no charge to revenue. The proceeds of this financing are
largely invested in corporate fixed interest securities of investment grade,
making a major contribution to the income earned by the Company.

Longer Term

Over the last three years, with the Company pursuing the higher yielding
strategy adopted in May 2000, the total return on net assets has averaged -1.5%
per annum, markedly better than the return of -9.9% per annum on the All-Share
Index. During that period the yield on net assets averaged 7.5% and the premium
at which the Company's shares stand to net asset value per share 5.2%.

New Issue

The Company has issued over four million new shares through the stockmarket in
response to demand from private investors since the new strategy was introduced.
As the buoyancy of the share price premium indicates that there continues to be
unsatisfied demand for the Company's shares, the Board is reviewing the
possibility of an issue of new shares by way of a placing and offer for
subscription at a premium to net asset value.


Continuation Vote

As required by the Company's Articles of Association an ordinary resolution will
be proposed at the forthcoming Annual General Meeting that the Company should
continue as an investment trust for a further five year period. The Directors
recommend shareholders to vote in favour of the resolution as they intend to do
in respect of their own beneficial holdings.


The Board believes that continuation is in the best interests of all
shareholders. The Company's performance record under the investment strategy
currently being followed demonstrates its ability to combine provision of a high
dividend yield with growth of both income and capital to achieve a total return
well above the average available from UK Equities. Moreover, the premium at
which the share price has stood to net asset value per share for the last two
and a half years reflects the continuing demand for the Company's shares from
private investors.


Outlook

Stock markets have been through turbulent times in recent years and reached a
low point as the war in Iraq approached.


Since then forecasts of output growth have been raised for all regions except
the Eurozone, as measures taken to stimulate economies have been seen to take
effect. The growing confidence in the potential for a strengthening recovery in
company profits provides the basis for selecting opportunities for sound
investment in UK shares.

Board

Norman Murray, who joined the Board in 1999, resigned in May 2003. I should like
to take this opportunity to thank him for his contribution to the Board's
deliberations over the past four years and wish him well for the future.


The Board welcomed Mr Kevin Hart, Finance Director of Cairn Energy plc, who
became a director of the Company in May this year.





R G Hanna
(Chairman)




Glasgow Income Trust plc
Consolidated Statement of Total Return
(incorporating the Revenue Account*)
for the year ended 30 September 2003
                                                  2003                            2002
                  Revenue£000    Capital £000    Total    Revenue    Capital     Total
                                                  £000       £000       £000      £000

Losses on                   -           2,098    2,098          -     (5,694)   (5,694)
investments
Income                  2,264               -    2,264      2,238          -     2,238
                        -------         -------  -------    -------    -------   -------
Management and
administrative
expenses                 (260)            (89)    (349)      (278)      (108)     (386)
                        -------         -------  -------    -------    -------   -------
NET RETURN
BEFORE
FINANCE COSTS
AND
TAXATION                2,004           2,009    4,013      1,960     (5,802)   (3,842)
Finance costs of          (17)            (17)     (34)       (71)       (71)     (142)
borrowings              -------         -------  -------    -------    -------   -------
RETURN ON
ORDINARY
ACTIVITIES
BEFORE
TAXATION                1,987           1,992    3,979      1,889     (5,873)   (3,984)
Taxation                 (191)             32     (159)      (207)       104      (103)
                        -------         -------  -------    -------    -------   -------
RETURN ON
ORDINARY
ACTIVITIES
AFTER
TAXATION FOR
THE
FINANCIAL YEAR          1,796           2,024    3,820      1,682     (5,769)   (4,087)
Dividends on           (1,795)              -   (1,795)    (1,777)         -    (1,777)
equity shares           -------         -------  -------    -------    -------   -------
TRANSFER TO/
(FROM)
RESERVES                    1           2,024    2,025        (95)    (5,769)   (5,864)
                        -------         -------  -------    -------    -------   -------
Return per               4.85p           5.47p   10.32p      4.92p    (16.88)p  (11.96)p
share
Dividends per            4.85p                               4.85p
share



*The revenue column of this statement is the consolidated revenue 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
2002 and 2003 but is derived from those accounts. Statutory accounts for 2002
have been delivered to the Registrar of Companies and those for 2003 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 2003

                                                            2003         2002
                                                            £000         £000
FIXED ASSETS
Ordinary shares                                           24,288       22,964
Convertibles                                               1,484        2,043
Corporate bonds                                            9,010        9,786
                                                         ---------    ---------
                                                          34,782       34,793
CURRENT ASSETS
Debtors                                                      613        1,949
Investments of dealing subsidiary undertaking                  -          128
Cash at bank                                                 339            -
                                                         ---------    ---------
                                                             952        2,077
CREDITORS
Amounts falling due within one year                       (1,487)      (5,208)
                                                         ---------    ---------
NET CURRENT LIABILITIES                                     (535)      (3,131)
                                                         ---------    ---------
TOTAL ASSETS LESS CURRENT LIABILITIES                     34,247       31,662
CREDITORS
Amounts falling due after more than one year             (13,085)     (12,525)
                                                         ---------    ---------
NET ASSETS                                                21,162       19,137
                                                         ---------    ---------

EQUITY SHAREHOLDERS' FUNDS                                21,162       19,137
                                                         ---------    ---------

Net asset value per share                                  57.17p       51.70p





Glasgow Income Trust plc
Consolidated Cash Flow Statement for the year ended 30 September 2003

                                                     2003                 2002
                                           £000      £000       £000      £000
OPERATING ACTIVITIES
Dividends and interest received from                1,959                1,925
investments
Income tax recovered                                    -                   65
Deposit interest received                              38                   13
Dealing subsidiary receipts                           366                  120
Other cash received                                   136                  300
Administrative expenses paid                         (352)                (387)
Payments to and on behalf of                          (36)                 (32)
Directors
Dealing subsidiary payments                          (188)                (277)
                                                   --------             --------
NET CASH INFLOW FROM OPERATING                      1,923                1,727
ACTIVITIES
SERVICING OF FINANCE
Interest paid                                         (61)                (121)
TAXATION
Corporation tax paid                                 (201)                   -
CAPITAL EXPENDITURE
Purchases of investments                (10,178)             (19,045)
Sales of investments                     12,847               16,100
                                         --------             --------
NET CASH INFLOW/(OUTFLOW) FROM
INVESTING
ACTIVITIES                                          2,669               (2,945)
EQUITY DIVIDENDS PAID                              (1,795)              (1,626)
                                                   --------             --------
                                                    2,535               (2,965)
FINANCING
Issues of shares                          1,427                1,496
Debt due within one year
- increase in short-term borrowings      (2,700)               2,000
                                         --------             --------
                                                   (1,273)               3,496
                                                   --------             --------
INCREASE IN CASH                                    1,262                  531
                                                   --------             --------








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