Interim Results

Glasgow Income Trust PLC
2 May 2002


News Release


2 May 2002


Glasgow Income Trust plc

Interim Results for the six months to 31 March 2002


The principal objective of Glasgow Income Trust plc, with total assets of
£39.7m, 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 2002          30 September 2001

Total assets less current liabilities                       £39.7m                     £33.7m
Shareholders funds                                           £27.9                     £22.1m
Net asset value per share                                   80.75p                     67.59p
Share price                                                 84.50p                     71.00p
Premium                                                       4.6%                       5.0%
Dividends per share                                          2.06p                     2.00p*


* Half year to 31 March 2001.

  • Total Return on net assets was 22.5%, well ahead of the return of 10.7% on
    the FTSE All-Share Index, the Company's benchmark.

  • A second interim dividend of 1.03p has been declared.  Dividends declared
    to date total 2.06p, compared with 2.00p last year.

  • The Company offers a high yield to its shareholders - it was 5.6% at 31
    March 2002 - while retaining its conventional structure with a single class
    of share capital.  It does not invest in split capital trusts.

  • The share price continues to trade at a premium to net asset value.  It
    was 4.6% at 31 March 2002.

  • Despite clear signs of economic recovery stockmarkets remain subdued and
    attractive investment opportunities continue to appear.


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 2002

                              Chairman's Statement


Objective

The Board continues to seek to maintain a high but sustainable dividend yield on
the Company's shares while retaining the prospect of growth in capital and
income.  The yield was 5.6% on the ordinary share price of 84.5p at 31 March
2002.

The structure of the trust is conventional, with the gearing which the zero
coupon finance represents invested principally in investment grade corporate
bonds.  There is no exposure to split capital trusts.

In an environment of low inflation and low interest rates an attractive yield on
the portfolio is a sound base from which to secure a satisfactory total return.


Background

In the half year to 31 March 2002 stockmarkets around the world recovered
gradually from the shock of the events of September 11 and began to respond to
the monetary and fiscal stimuli applied to their economies by governments
throughout 2001.  Investors' confidence remained fragile, however, as the
deteriorating crisis in the Middle East diverted their attention from
encouraging economic developments.


Investment Returns

The Company's portfolio continued to perform well.  The total return on net
assets was 22.5%, well ahead of the returns of 10.7% on the FTSE All-Share
Index, the Company's official benchmark, and 15.9% on the FTSE 350 Higher Yield
Index.

The total return to shareholders was a little lower, at 21.9%, as there was a
slight fall in the premium at which the share price stands to net asset value,
from 5.0% at 30 September 2001 to 4.6% at 31 March 2002.


Dividends

The Board has declared a second interim dividend of 1.03p per ordinary share, to
be paid on 30 August 2002 to shareholders on the register at close of business
on 2 August 2002.  A first interim dividend of 1.03p per share was declared for
payment on 31 May 2002.  Dividends declared in 2002 to date thus total 2.06p, an
increase of 3% over the level of dividends paid and declared at the same stage
of last year.


Portfolio Profile

Between 30 September 2001 and 31 March 2002 the portfolio's exposure to ordinary
shares rose from 108.4% to 112.9% of net assets, while the exposure to
convertibles and corporate bonds fell from 53.5% to 42.6% and total gearing from
66.3% to 55.5%.  These changes were largely due to the good performance of the
ordinary share portfolio.  The hedge position in place at 30 September 2001 was
sold.

The zero coupon finance raised as part of the higher yield strategy introduced
in May 2000 comprises four FTSE 100 Index options which are marked to market for
the purpose of establishing the value of the liability to be included in the
calculation of net asset value.  At inception the rate of provision to repay
this finance over five years was 7.2% per annum.  Up to 31 March 2002, however,
it has been 9.9% per annum, leaving 5.6% per annum to be provided in the balance
of the period to maturity in May 2005.


Issue of New Ordinary Shares

In the course of the period under review, a total of 1,900,000 new ordinary
shares was issued through the stockmarket on four occasions at an average
premium of 6.2% to net asset value.  This represents an increase of 5.8% in the
issued share capital of the Company.


Outlook

Although economies around the world have shown clear signs of recovery in the
first three months of 2002, stockmarkets have remained quite subdued, perhaps
out of concern for the possible impact on the oil price of further turbulence in
the Middle East.  With share prices as yet making only modest progress,
attractive investment opportunities continue to appear and yields remain higher
than they would be if stockmarkets were to respond more readily to improving
economic prospects.

The Interim Report will be mailed to shareholders on 9 May 2002.  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 2002

                                                                Half year to 31 March 2002
                                                                        (unaudited)
                                                           Revenue              Capital               Total
                                                              £000                 £000                £000

Gains/(Losses) on investments                                    -                4,464               4,464
Dividends and interest receivable                              869                    -                 869
Profits less losses of dealing subsidiary                       15                    -                  15
Traded option premiums                                           -                    -                   -
Investment management fee                                     (52)                 (52)               (104)
Other administrative expenses                                 (70)                    -                (70)
Net return before finance
  costs and taxation                                           762                4,412               5,174
Finance costs of borrowings                                     21                   21                  42
Return on ordinary activities
  before taxation                                              741                4,391               5,132
Taxation                                                       102                 (49)                  53
Return on ordinary activities
  after taxation for the period                                639                4,440               5,079
Dividends on equity shares                                     744                    -                 744
Transfer (from)/to reserves                                  (105)                4,440               4,335
Return per share                                             1.95p               13.52p              15.47p
Dividends per share                                          2.06p



                     Consolidated Statement of Total Return
                                  (continued)


                                             Half year to 31 March 2001            Year to 30 September 2001
                                                    (unaudited)                            (audited)
                                           Revenue     Capital      Total    Revenue    Capital        Total
                                              £000        £000       £000       £000       £000         £000

Gains/(Losses) on investments                    -       1,911      1,911          -    (2,244)      (2,244)
Dividends and interest receivable              920           -        920      1,981          -        1,981
Profits less losses of dealing                   1           -          1          1          -            1
subsidiary
Traded option premiums                           -           -          -        110          -          110
Investment management fee                     (49)        (49)       (98)      (102)      (102)        (204)
Other administrative expenses                 (83)           -       (83)      (211)          -        (211)
Net return before finance
  costs and taxation                           789       1,862      2,651      1,779    (2,346)        (567)
Finance costs of borrowings                     20          20         40         53         53          106
Return on ordinary activities
  before taxation                              769       1,842      2,611      1,726    (2,399)        (673)
Taxation                                        95        (95)          -        162      (162)            -
Return on ordinary activities
  after taxation for the period                674       1,937      2,611      1,564    (2,237)        (673)
Dividends on equity shares                     621           -        621      1,504          -        1,504
Transfer to/(from) reserves                     53       1,937      1,990         60    (2,237)      (2,177)
Return per share                             2.17p       6.24p      8.41p      5.00p    (7.14)p      (2.14)p
Dividends per share                          2.00p                             4.70p


Note: These are not statutory accounts under section 240 of the Companies Act
1985 and are unaudited.  The information relating to the group balance sheet as
at 30 September 2001 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 and Distribution of Assets
                              as at 31 March 2002

                                                           31 March 2002              30 September 2001
                                                            (unaudited)                   (audited)
                                                             £000              %         £000              %
Fixed assets

Investments listed on the London Stock Exchange
 - ordinary shares                                         31,502          112.9       23,938          108.4
 - convertibles                                             2,358            8.4        2,265           10.3
Corporate bonds                                             9,551           34.2        9,537           43.2
Hedge instruments                                               -              -          976            4.4
                                                           43,411          155.5       36,716          166.3
Current assets

Debtors                                                       799                         547
Cash on short-term deposit                                    150                           -
                                                              949                         547
Creditors: amounts falling due within one year              4,681                       3,606

Net current liabilities                                   (3,732)         (13.4)      (3,059)         (13.9)

Total assets less current liabilities                      39,679          142.1       33,657          152.4

Creditors: amounts falling due after more than one
year
Zero coupon finance                                      (11,766)         (42.1)     (11,579)         (52.4)
Net assets                                                 27,913          100.0       22,078          100.0

Capital and reserves

Called up share capital (see note below)                    8,641                       8,166
Share premium account                                       4,027                       3,002
Special reserve                                             5,000                       5,000
Realised capital reserve                                    7,348                       7,406
Unrealised capital reserve                                  1,992                     (2,506)
Revenue reserve                                               905                       1,010
Equity shareholders' funds                                 27,913                      22,078

Net asset value per share                                  80.75p                      67.59p


Note: During the period, 1,900,000 new ordinary shares were issued at various
prices between 78.25p and 80p per share through the stockmarket. These were
issued for cash at the prevailing market price when this stood at a premium to
the underlying fully diluted net asset value per share. At 31 March 2002, there
were 34,565,112 ordinary shares in issue (30 September 2001 - 32,665,112).


                        Consolidated Cash Flow Statement
                     for the half year ended 31 March 2002

                                                   Half year to     Half year to            Year to
                                                  31 March 2002    31 March 2001  30 September 2001
                                                    (unaudited)      (unaudited)          (audited)
                                                           £000             £000               £000

Net cash inflow from operating activities                   608              616              1,666

Servicing of finance

Interest paid                                              (37)             (22)              (101)
Taxation

Corporation tax paid                                          -                -               (10)
Capital expenditure

Purchases of investments                               (11,619)         (13,232)           (23,763)
Sales of investments                                      9,481           11,932             20,383
Net cash outflow from investing activities              (2,138)          (1,300)            (3,380)

Equity dividends paid                                     (914)            (760)            (1,382)

Net cash outflow before financing                       (2,481)          (1,466)            (3,207)

Financing

Issues of shares                                          1,500                -              1,346
Debt due within one year
 - increase in short-term borrowings                      2,000            2,500              1,000
                                                          3,500            2,500              2,346
Increase/(Decrease) in cash                               1,019            1,034              (861)



Analysis of Changes in Net Debt

                                                At            Cash         Other At
                                 30 September 2001           flows      non-cash        31 March 2002
                                              £000            £000          £000                 £000

Short-term deposits                              -             150             -                  150
Bank overdrafts                            (1,454)             869             -                (585)
Short-term borrowings                      (1,000)         (2,000)             -              (3,000)
Zero coupon finance                       (11,579)               -         (187)             (11,766)
                                          (14,033)           (981)         (187)             (15,201)



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