Interim Results

Glasgow Income Trust PLC
06 May 2004


News Release

6 May 2003

Glasgow Income Trust plc
Interim Results for the six months to 31 March 2004

The principal objective of Glasgow Income Trust plc is to provide shareholders
with a high level of income and to obtain growth in both income and capital over
the longer term.

                                               31 March 2004  30 September 2003

Total assets less current liabilities                £49.67m            £34.25m
Shareholders' funds                                  £32.05m            £21.16m
Net asset value per share                             65.43p             57.17p
Share price                                           65.00p             63.75p
(Discount)/Premium (share price to net
asset value)                                          (0.7)%              11.5%
Dividends per share                                    2.06p             2.06p*

* Half year to 31 March 2003.

   •Total return on net assets was 18.1%, which compares favourably with a
    return of 10.1% on the FTSE All-Share Index, the Company's benchmark.


   •Net assets rose by almost £11 million in the six month period, due partly
    to the proceeds of issue of new shares and partly to a rise in the value of
    the Company's investments.


   •Based upon the share price of 65p at 31 March 2004 the yield on ordinary
    shares was 7.5%.


   •Equity gearing was reduced to 6.3% at 31 March 2004 from 14.8% of net
    assets at 30 September 2003.


   •A second interim dividend of 1.03p was declared on 6 April 2004.
    Dividends declared to date total 2.06p, the same level as paid last year.


For further information please contact:
David Williams, Managing Director
Glasgow Investment Managers
0141 572 2700



Glasgow Income Trust plc

Interim Report as at 31 March 2004

Chairman's Statement

Financial Highlights
The first half of the Company's financial year witnessed continuing progress.
Net assets rose by almost £11 million, due partly to the proceeds of the issue
of new shares and partly to a rise in the value of the Company's investments.
The net asset value per share rose by 14.4% and the yield on the ordinary shares
was 7.5% on a share price of 65p as at 31 March 2004, with dividends paid and
declared to date at the same level as last year.

Background
These results were achieved against the background of a recovering stockmarket,
as forecasts of UK economic growth were raised. Rising consumption expenditure
made a major contribution to the expansion of aggregate output as low interest
rates and low unemployment together with higher house prices and higher employee
earnings were reflected in improving consumer confidence.

Investment Returns
The total return on net assets was 18.1%, which compares favourably with a
return of 10.1% on the FTSE All-Share Index, the Company's benchmark.

The total return to shareholders, at 5.2%, was lower than the return on net
assets, reflecting the fact that the premium of 11.5% at which the share price
stood to net asset value per share at 30 September 2003 gave way to a small
discount of 0.6% at 31 March 2004.

New Share Issue
In the 2003 Annual Report, I stated that the Board was reviewing the possibility
of enlarging the Company through a new share issue. On 17 December 2003 almost
12 million new shares were issued at a price of 62p, representing a 4% premium
to net asset value per share and a discount of 1.6% to the closing middle market
price of 63p per share. After the expenses of the issue net proceeds were £7.15
million.

Dividends
On 6 April 2004 the Board declared a second interim dividend of 1.03p per share
to be paid on 30 April 2004 to shareholders on the register at close of business
on 16 April 2004. A first interim dividend of 1.03p per share was paid on 30
January 2004. The 11,959,162 new shares issued in December 2003 did not qualify
for the first interim dividend. Dividends paid and declared to date in 2004
therefore total 2.06p per share, the same level as paid last year.

Portfolio Profile and Gearing
In order to maintain the Company's gearing following the share issue, £4.1
million of additional zero coupon finance was raised in January 2004 with a
maturity value of £5.4 million repayable in December 2008. This equates to a
financing cost of 5.7% per annum to be charged wholly to capital.

The 2008 repayment date of the additional zero coupon finance assists the
Board's objective of spreading the maturity dates of the Company's borrowings,
as the original zero coupon finance falls due for repayment in May 2005.

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 106.3% of net assets was invested in
equities compared with 114.8% the previous year. The investment in fixed
interest and convertible securities amounted to 43.3% of net assets down from
49.5%.

Continuation Vote
I am pleased to inform you that the resolution that the Company continue as an
investment trust for a further five years was passed unanimously at the
Company's Annual General Meeting on 16 December 2003. Proxy voting in favour of
the resolution was 99%.

Outlook
High personal indebtedness, the upward pressure on interest rates and the
expected declining impact of public spending are likely to restrain the growth
of personal consumption and aggregate output in the UK over the next one to two
years. The outlook for inflation, however, remains benign and so significant
rises in interest rates are not expected. This is likely to provide an
environment of stable but unspectacular economic growth and a return of investor
confidence. Companies with sound balance sheets and healthy cash flows offer
best prospect of higher dividends and good investment returns.

The Interim Report will be mailed to shareholders on 13 May 2004. Copies may be
obtained from the Mangers, 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 2004

                                                Half year to 31 March 2004
                                                        (unaudited)
                                              Revenue      Capital       Total
                                                 £000         £000        £000

Gains on investments                                -        3,772       3,772
Dividends and interest receivable               1,166            -       1,166
Profits less losses of dealing subsidiary           -            -           -
Traded option premiums                             31            -          31
Investment management fee                         (60)         (60)       (120)
Other administrative expenses                    (129)           -        (129)
                                             ---------- ------------ -----------
Net return before finance                       1,008        3,712       4,720
costs and taxation
Finance costs of borrowings                        (1)          (1)         (2)
                                             ---------- ------------ -----------
Return on ordinary activities                   1,007        3,711       4,718
before taxation
Taxation                                         (114)          22         (92)
                                             ---------- ------------ -----------
Return on ordinary activities                     893        3,733       4,626
after taxation for the period
Dividends on equity shares                       (886)           -        (886)
                                             ---------- ------------ -----------
Transfer to reserves                                7        3,733       3,740
                                             ---------- ------------ -----------
Return per share                                 2.21p        9.23p      11.44p
Dividends per share                              2.06p



Consolidated Statement of Total Return
(continued)

                       Half year to 31 March 2003   Year to 30 September 2003
                               (unaudited)                   (audited)
                       Revenue   Capital    Total   Revenue   Capital    Total
                          £000      £000     £000      £000      £000     £000

(Losses)/Gains on
investments                  -    (1,148)  (1,148)        -     2,098    2,098

Dividends and interest
receivable                 887         -      887     2,076         -    2,076

Profits less losses of
dealing subsidiary          (9)        -       (9)       50         -       50

Traded option premiums      27         -       27       138         -      138

Investment management
fee                        (43)      (43)     (86)      (89)      (89)    (178)

Other administrative
expenses                  (100)        -     (100)     (171)        -     (171)
                        --------   -------  -------  --------   -------  -------
Net return before
finance                    762    (1,191)    (429)    2,004     2,009    4,013
costs and taxation

Finance costs of
borrowings                 (17)      (17)     (34)      (17)      (17)     (34)
                        --------   -------  -------  --------   -------  -------
Return on ordinary
activities                 745    (1,208)    (463)    1,987     1,992    3,979
before taxation

Taxation                  (107)       15      (92)     (191)       32     (159)
                        --------   -------  -------  --------   -------  -------
Return on ordinary
activities                 638    (1,193)    (555)    1,796     2,024    3,820
after taxation for the
period

Dividends on equity
shares                    (763)        -     (763)   (1,795)        -   (1,795)
                        --------   -------  -------  --------   -------  -------
Transfer (from)/to
reserves                  (125)   (1,193)  (1,318)        1     2,024    2,025
                        --------   -------  -------  --------   -------  -------
Return per share          1.72p    (3.22)p  (1.50)p    4.85p     5.47p   10.32p

Dividends per share       2.06p                        4.85p


Note: These are not statutory accounts under section 240 of the Companies Act
1985 and are unaudited. The information relating to the group balance sheet as
at 30 September 2003 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 2004

                                 31 March 2004   30 September   31 March 2003
                                   (unaudited)           2003     (unaudited)
                                                    (audited)
                                          £000           £000            £000


Fixed assets
Listed investments
Ordinary shares                         34,064         24,288          18,612
Convertibles                             1,231          1,484           1,419
Corporate bonds                         12,633          9,010           8,814
                                     ----------- --------------     -----------
                                        47,928         34,782          28,845
Current assets
Debtors                                    830            613             454
Investments of dealing subsidiary          118              -             119
Cash at bank and in hand                 1,525            339           2,383
                                     ----------- --------------     -----------
                                         2,473            952           2,956
                                     ----------- --------------     -----------
Creditors: amounts falling due                               
within one year                           (731)        (1,487)         (1,052)
                                     ----------- --------------     -----------
Net current liabilities                  1,742           (535)          1,904
                                     ----------- --------------     -----------
Total assets less current
liabilities                             49,670         34,247          30,749

Creditors: amounts falling due
after more than one year
Zero coupon finance                   (17,624)       (13,085)        (12,930)
                                     ----------- --------------     -----------
Net assets                              32,046         21,162          17,819
                                     ----------- --------------     -----------
Capital and reserves
Called up share capital                 12,244          9,254           9,254
Share premium account                    8,992          4,837           4,837
Special reserve                          5,000          5,000           5,000
Realised capital reserve                 4,055          4,085           4,300
Unrealised capital reserve                 832         (2,930)         (6,362)
Revenue reserve                            923            916             790
                                     ----------- --------------     -----------
Equity shareholders' funds              32,046         21,162          17,819
                                     ----------- --------------     -----------
Net asset value per share               65.43p         57.17p          48.14p



Consolidated Cash Flow Statement
for the half year ended 31 March 2004

                             Half year to        Half year to          Year to
                                 31 March            31 March     30 September
                                     2004                2003             2003
                              (unaudited)         (unaudited)        (audited)
                                     £000                £000             £000

Net cash inflow from 
operating activities                  660                 770            1,923

Servicing of finance
Interest paid                          (3)                (62)             (61)
Taxation
Corporation tax paid                  (73)                  -             (201)
Investing activities
                                 ----------           ---------       ----------
Purchases of investments          (17,960)             (2,392)         (10,178)
Sales of investments                9,024               7,596           12,847
                                 ----------           ---------       ----------
                                   (8,936)              5,204            2,669

Equity dividends paid              (1,415)             (1,033)          (1,795)
                                 ----------           ---------       ----------
Net cash inflow/(outflow)
before financing                   (9,767)              4,879            2,535

Financing
                                 ----------           ---------       ----------
Issues of shares                    7,145               1,427            1,427
Zero coupon finance                 4,108                   -                -
Debt due within one year
- decrease in short-term
borrowings                           (300)             (3,000)          (2,700)
                                 ----------           ---------       ----------
                                   10,953              (1,573)          (1,273)
                                 ----------           ---------       ----------
Increase in cash                    1,186               3,306            1,262
                                 ----------           ---------       ----------


Analysis of Changes in Net Debt

                                   At         Cash        Other             At
                         30 September        flows    non- cash       31 March
                                 2003                   changes           2004
                                 £000         £000         £000           £000

Cash at bank and in hand          339        1,186            -          1,525
Short-term borrowings            (300)         300            -              -
Zero coupon finance           (13,085)      (4,108)        (431)       (17,624)
                             ----------    ---------    ---------      ---------
                              (13,046)      (2,622)        (431)       (16,099)
                             ----------    ---------    ---------      ---------

Distribution of Assets

                  Valuation at     Purchases   Sales    Appreciation    Valuation at
               30 September 2003                                        31 March 2004
                    (audited)                                           (unaudited)
                   £000        %        £000     £000           £000      £000       %
Listed 
investments

Ordinary
shares           24,288    114.8      14,287   (8,744)         4,233    34,064   106.3

Convertibles      1,484      7.0           -     (280)            27     1,231     3.9

Corporate
bonds             9,010     42.5       3,673        -            (50)   12,633    39.4
                  -------  -------    --------  -------      ---------   -------  ------
                 34,782    164.3      17,960   (9,024)         4,210    47,928   149.6
                                      --------  -------      ---------

Net current
(liabilities)/
assets             (535)    (2.5)                                        1,742     5.4

Total assets
less current
liabilities      34,247    161.8                                        49,670   155.0

Zero coupon
finance         (13,085)   (61.8)                                      (17,624)  (55.0)
                  -------  -------                                       -------  ------

Net assets       21,162    100.0                                        32,046   100.0
                  -------  -------                                       -------  ------

Net asset
value per
share              57.2p                                                  65.4p




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