Interim Management Statement

Shires Income PLC
24 July 2007

SHIRES INCOME PLC

INTERIM MANAGEMENT STATEMENT

For Quarter Ending 30 June 2007



OBJECTIVE

The objective of the Company is to provide a high level of income, together with
growth of both income and capital from a portfolio substantially invested in UK
equities.



KEY FACTS



Net Asset Value (NAV) per share                    322.4p ^

Ordinary Share Price                               309.25p

(Discount)/Premium                                 (4.1)%

Gearing                                            46.1%

Equity gearing                                     14.8%





PERFORMANCE - TOTAL RETURN

                                           Quarter to 30 June 2007
NAV                                                 0.4%

Share Price                                         0.9%*

FTSE All Share Index                                4.5%



* Mid to Mid closing share price, net income reinvested.

^ Based on Cum Income NAV excluding IFRS dividend adjustment of 10.45p



MATERIAL DEVELOPMENTS



O      In the first financial quarter the trust provided a total NAV return of
0.4% compared with 4.5% for the FTSE All Share, the Company's benchmark.
Equities returned 2.4% with the underperformance reflecting the trust's exposure
to mid and small cap, the FTSE 250 and SmallCap (ex investment companies)
indices returning -0.54% and -0.61% respectively. Most specifically a zero
weighting to Oil & Gas Producers was damaging with the sector returning 16.1%.

Given the background of rising interest rates, Convertibles and Preference
Shares were a negative returning -3.9% and the biggest contributor to
underperformance with a relative return contribution to the benchmark of -2.7%.

O      Material Transactions

Purchases - Babcock International was purchased. Babcock recently acquired
Devonport Shipyard which will make Babcock a leading supplier of support
services to the Royal Navy. BAE Systems was also acquired as the stock continues
to trade at a discount to the Aerospace & Defence sector despite strong earnings
growth and cash generation.

Sales - the holding in Vodafone was partially sold due to the exercise of traded
options. The entire holding in Bradford & Bingley was sold due to concerns of a
slowdown in mortgage business following the increase in interest rates.

There were also a number of transactions in the preference share portfolio
primarily to generate income for the portfolio.



O      Looking forward, the stock market remains good value but we remain
vigilant in the short-term as higher interest rates will impact certain sectors.
Concerns over the rate of inflation are unlikely to dissipate for the remainder
of the year which could have a detrimental impact on the overall returns from
the market.



O      On 6 July 2007 the AGM of the Company was held. All resolutions were
passed with the 2006/07 final dividend of 6.05p being approved for payment on 31
July 2007.



DISTRIBUTION OF ASSETS AND LIABILITIES

As At 30 June 2007
                                           Valuation at
                                           30 June 2007
  
                                         £000           %
Listed investments
 Ordinary shares                      104,547       109.1
 Convertibles                             784         0.8
 Other fixed interest                  29,940        31.3
                                      135,271       141.2


Unlisted Investments                    4,706         4.9
Total Investments                     139,977       146.1

Current assets/(liabilities)          (16,498)      (17.2)

Index Linked Debenture Stock          (27,684)      (28.9)
                                     ________     _______

Net assets                             95,795       100.0

Net asset value per ordinary share                  322.4p




TOP 10 INVESTMENTS

Company                                              £                  % of
                                                                 Total Investments

Shires Smaller Companies                             11,430,000          8.2
Gen Accident 8.875% & 7.875% Prefs                    7,701,375          5.5
Ecclesiastical Insurance 8.625% Pref                  6,438,600          4.6
Royal & SunAlliance 7.375% Pref                       5,512,500          3.9
Legal & General Group                                 5,250,000          3.8
Pennon Group                                          5,170,200          3.7
Lloyds TSB Group                                      5,138,375          3.7
Babcock International                                 4,855,500          3.5
Vodafone Group                                        4,853,238          3.5
Rio Tinto                                             4,782,500          3.4



There have been no material events or transactions between the date of
publication and the 30th June 2007.




This interim management statement has been produced solely to provide additional
information to shareholders as a body to meet the relevant requirements of the
UK Listing Authority's Disclosure and Transparency rules. It should not be
relied upon by any other party or for any other purposes. In addition, the
views, information and data in this publication should not be deemed as a
financial promotion or recommendation.



Contact



Kenneth Harper
Head of Investment Trusts
0141-572-2700



Graeme McDonald
Chief Accountant
0141-572-2700



Shires Income plc, an investment trust, is managed by Glasgow Investment
Managers Limited.




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