Interim Results

Glasgow Income Trust PLC
10 May 2001


News Release


10 May 2001
                             GLASGOW INCOME TRUST

                           INTERIM RESULTS FOR THE

                        SIX MONTHS ENDED 31 MARCH 2001


*  Total return on net assets was 11.5%, significantly ahead of the
   return of -9.4% on the FTSE All-Share Index, the company's benchmark.

*  The total return to shareholders was 14.6%, higher than the return on
   net assets because the discount fell from 5.8% at 30 September 2000 to 3.4% 
   at 31 March 2001.

*  Hedging of the ordinary share portfolio was introduced - to limit the
   impact on gearing of a significant fall in ordinary share prices - and
   contributed 4.6% to the portfolio return in the recent period of stockmarket
   weakness.

*  A second interim dividend of 1.0p per ordinary share has been declared. A    
   first interim dividend of 1.0p per share was declared for payment on 31 May  
   2001. Dividends paid and declared in 2001 to date thus total 2.0p, compared  
   with 1.25p last year.

*  It remains the intention of the Board to pay total dividends of not less than
   4.7p per share in respect of the year to 30 September 2001, an increase in   
   total dividends of 27% compared with last year and equivalent to a yield of  
   6.1% on the share price of 77.5p on the share price on 31 March 2001.

*  In the recent uncertainty in world stockmarkets equity prices have fallen to 
   valuation levels previously seen in 1998 and 1980. On these lower ratings 
   equities offer higher yields than for some time, presenting attractive       
   opportunities to invest for a trust with an income objective. 


For further information please contact:

David Williams,         Managing Director
                        Glasgow Investment Managers       0141 572 2700


                           Glasgow Income Trust plc

                             Interim Report - 2001

                              Chairman's Statement


Background

The half year to 31 March 2001 was a period of marked weakness in stockmarkets
around the world.  Investors retreated from exotic to more defensive stocks as
the technology bubble continued to deflate and the rate of growth of the US
economy fell sharply.

Investment Returns

The Company's portfolio performed well and the total return on net assets was
11.5%, significantly ahead of the returns of -9.4% on the FTSE All-Share
Index, the company's benchmark, and 5.4% on the FTSE Actuaries Higher Yield
Index.

The total return to shareholders, at 14.6%, exceeded the return on net assets,
due to a further fall in the discount at which the share price stood to net
asset value per share.

Share Price Rating

The introduction of the new strategy last year, raising the prospective yield
while retaining the growth characteristics of the portfolio, has contributed
to lowering the discount.  The discount was 14.6% on 31 May 2000, immediately
before the strategy was introduced, 5.8% on 30 September 2000, the beginning
of the half year under review, and 3.4% at 31 March 2001.

Dividends

The Board has declared a second interim dividend of 1.0p per ordinary share,
to be paid on 31 August 2001 to shareholders on the register at close of
business on 3 August 2001.  A first interim dividend of 1.0p per share was
declared for payment on 31 May 2001.  Dividends paid and declared in 2001 to
date thus total 2.0p, compared with 1.25p last year.

It remains the intention of the Board to pay total dividends of not less than
4.7p per share in respect of the year to 30 September 2001, an increase in
total dividends of 27% compared with last year.  At the share price of 77.5p
on 31 March 2001 this dividend forecast represents a net yield of 6.1%.

Portfolio Profile

In the first three months of 2001 the exposure to ordinary shares was raised,
to 104.3% of net assets at 31 March 2001, while the exposure to fixed income
securities was reduced, to 49.7%.  The additional investment in equities was
financed with short-term bank borrowings and total gearing rose to 54.0% of
net assets from 49.7% at 30 September 2000.

Portfolio Hedging

The high-yielding strategy introduced last year involved raising the gearing
of the Trust to around 50% of net assets.  To limit the major further rise in
gearing - with attendant erosion of net assets - which could result from a
significant fall in ordinary share prices on the stockmarket, the Board
decided to put in place low cost partial hedging of the Company's ordinary
share portfolio.

This hedge came into play when the UK stockmarket fell sharply in March and
the profit realised from that strategy contributed 4.6% to the return on net
assets.  At the same time the hedge was reinstated to provide protection in
the event of further equity price weakness.

Outlook

In response to the recent precipitate slowdown in the US economy interest
rates have been cut both there and in the UK.  There are already signs that
this relaxation of monetary policy has led to an improvement in confidence and
output growth rates on both sides of the Atlantic are expected to recover in
2002.  Meanwhile in the recent uncertainty in world stockmarkets equity prices
have fallen to valuation levels previously seen in 1998 and 1980.  On these
lower ratings equities offer higher yields than for some time, presenting
attractive opportunities to invest for a Trust with an income objective.

The Interim Report will be mailed to shareholders on 15 May 2001. 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)


                    Consolidated Statement of Total Return
                     (incorporating the Revenue Account)
                    for the half year ended 31 March 2001

                                                Half year to 31 March 2001     
                                                         (unaudited)           
                                              £000           £000         £000
                                           Revenue        Capital        Total

  Gains/(Losses) on investments                  -          1,911        1,911
  Dividends and interest receivable            920              -          920
  Profits less losses of                         1              -            1
  dealing subsidiary 
  Traded option premiums                         -              -            -
  Investment management fee                    (49)           (49)         (98)
  Other administrative expenses                (83)              -         (83)

                                                                   
  Net return before finance                                                     

  costs and taxation                           789           1,862       2,651
                                                                              
  Finance costs of borrowings                   20              20          40
                                                                   
  Return on ordinary                                                          
  activities before taxation                   769           1,842       2,611
  
  Taxation                                      95           (95)            -

  Return on ordinary activities                                          
  after taxation for the period                674          1,937        2,611
                                                                    
  Dividends on equity shares                   621              -          621
                                                                        
  Transfer to reserves                          53          1,937        1,990

  Return per ordinary share                   2.17p          6.24p        8.41p
                                                                        
  Dividends per ordinary share                2.00p                            
                                                                       



                  Half year to 31 March 2000           Year to 30 September 2000
                          (unaudited)                              (audited)
                    £000      £000      £000       £000       £000       £000
                 Revenue   Capital     Total    Revenue    Capital      Total   
                     
Gains/(Losses)
on investments         -     (284)     (284)         -       (970)      (970)

Dividends and
interest             513        -       513      1,415          -      1,415
receivable

Profits less losses
of dealing            21        -        21         50          -         50
subsidiary

Traded option
premiums             136        -       136        165          -        165

Investment
management fee       (36)     (36)      (72)       (80)       (80)      (160)

Other
administrative       (77)       -       (77)      (158)         -       (158)
expenses                                                                        


Net return
before finance
costs and
taxation             557     (320)      237       1,392     (1,050)       342
 
Finance costs
of borrowings         63       63       126        102        102        204

Return on
ordinary
activities
before taxation      494    (383)       111      1,280     (1,152)       138
                                                                    
Taxation               -       -          -         10          -         10
 
Return on
ordinary
activities
after taxation for   494    (383)       111      1,280     (1,152)       128
the period                                                           

Dividends on
equity shares        388       -        388      1,148          -      1,148

Transfer to                                                                     
reserves             106    (383)      (277)       132     (1,152)    (1,020)   


Return per
ordinary share      1.59p  (1.24p)     0.35p      4.12p     (3.71p)     0.41p

Dividends per
ordinary share      1.25p                         3.70p

Note: These are not statutory accounts under section 240 of the Companies Act
1985 and are unaudited. The information relating to the group balance sheets
as at 30 September 2000 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.


                             Group Balance Sheet
                             as at 31 March 2001

                               31 March                     30 September
                                 2001                            2000
                             (unaudited)                      (audited)
                        £000                %            £000            %

Fixed assets
Investments listed on
the London Stock
Exchange
        - ordinary                                 
          shares       25,975           104.3           22,261          97.2
        - convertibles  1,999             8.0            2,089           9.1
                        
Corporate bonds        10,368            41.7            9,949          43.4

                       38,342           154.0           34,299         149.7

Current assets
Debtors                   614                            1,417

Cash at bank and on
short-term deposit        441                              200

Investments of dealing
subsidiary undertaking      -                                -  

                        1,055                            1,617

Creditors: amounts
falling due within one  3,248                            2,675
year

Net current
liabilities            (2,193)           (8.8)         (1,058)         (4.6)

Total assets less
current liabilities    36,149           145.2           33,241        145.1

Creditors: amounts
falling due after 
more than one year

Zero coupon finance    11,250           (45.2)          10,332        (45.1)

Net assets             24,899           100.0           22,909        100.0
                       

Capital and reserves

Called up share
capital                 7,761                            7,761
Share premium account   2,061                            2,061
Special reserve         5,000                            5,000
Realised capital
reserve                 7,115                            5,622
Unrealised capital
reserve                 1,959                            1,515
Revenue reserve         1,003                              950
                        
Equity shareholders'
funds                  24,899                           22,909

Net asset value per
ordinary share          80.21p                          73.80p


                       Consolidated Cash Flow Statement
                     for the half year ended 31 March 2001

                         Half year to        Half year to 31        Year to 30
                        31 March 2001          March 2000           September
                                                                       2000
                         (unaudited)           (unaudited)          (audited)
                               £000                £000                  £000

Net cash inflow                  616                 614               1,137
from operating activities
Servicing of finance
   Interest paid                 (22)               (128)               (217)
Investing activities
   Purchases of investments  (13,232)             (2,919)            (20,110)
   Sales of                   11,932               3,966              14,241
   investments
                              (1,300)              1,047              (5,869)

Equity dividends paid           (760)               (543)               (931)

Net cash                      (1,466)                990              (5,880)
(outflow)/inflow
before financing

Financing

Zero coupon finance                -                   -               9,881

Debt due within one year
   - increase/(decrease)       2,500                1,093             (3,004)
     in short-term borrowings
                               2,500                1,093              6,877

Increase in cash               1,034                2,083                997


                            Analysis of changes in net debt


                         At 30                           Other          At 31
                     September        Cash            non-cash          March
                         2000        flows             changes           2001
                         £000         £000                £000           £000

Short-term deposits       200        (200)                  -               -
Cash at bank                -         441                   -             441
Bank overdrafts          (793)        793                   -               -
Short-term borrowings       -      (2,500)                  -          (2,500)
Zero coupon finance   (10,332)                           (918)        (11,250)

                      (10,925)     (1,466)               (918)        (13,309)