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Murray Income Tst. (MUT)

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Wednesday 25 February, 2004

Murray Income Tst.

Interim Results

Murray Income Trust PLC
25 February 2004


Murray Income Trust PLC
Results for the six months ended 31 December 2003


The Directors of Murray Income Trust PLC report the unaudited interim results
for the six months ended 31 December 2003.

Key Facts

   •Murray Income's Net Asset Value on a total return basis rose 14.3%.

   •Share price rose from 416p to 441p.

   •Second interim dividend of 4.5p will be paid on 5 April 2004.

Performance

The UK stockmarket continued to recover and during the six months to 31 December
2003 the Net Asset Value, on a total return basis, of Murray Income rose 14.3%.
This was marginally ahead of the total return from the benchmark FTSE 350 Higher
Yield index, which rose 14.2%.

Background

Although stockmarkets around the world enjoyed a good recovery in the second
half of 2003, as investor confidence returned and the economic outlook improved,
most remain well below their highest levels. In the UK, the economic news was
mixed. While the employment market is strong and wages are only growing slowly,
this coupled with higher taxes means that real incomes have been squeezed. In
addition, the level of government borrowing is exceeding targets and interest
rates are rising. Importantly, the dollar weakened against sterling and the euro
and this process, which has continued since the end of the year, could become a
cause of concern.

Activity

Turnover in the Trust was light, with the aggregate of sales and purchases
representing only 9.4% of average assets in the period under review. Three new
holdings were added to the portfolio. These were: Greggs, a bakery and sandwich
retailer; Wolverhampton & Dudley Breweries, a brewer and pub operator; and AGA
Foodservice, which manufactures kitchen equipment for the domestic and commercial
market. The biggest single transaction was within the Mining sector where the
holding in Rio Tinto was sold and the proceeds switched into BHP Billiton.

Gearing

The net purchases of £6m were largely funded by increasing borrowings by £5m to
£40m during the period. All of this debt is at floating rates and can be repaid
quickly without penalty.

Dividend

A first interim dividend of 4.5p, which is an increase of 5.9% on that paid in
the previous year, was paid on 16 January 2004 to holders of Ordinary shares on
the register at close of business on 19 December 2003. A second interim dividend
of 4.5p will be paid on 5 April 2004 to holders of Ordinary shares on the
register at close of business on 12 March 2004. Shareholders should note that
this dividend is being paid earlier than normal in order that those shareholders
whose shares are held within a PEP or ISA can benefit from a final opportunity
to reclaim a tax credit on the dividend payment. A change in the law means that
this will no longer be possible after 6 April this year. In line with the
comments made by Directors in the Annual Report, the third interim dividend will 
also be 4.5p and will be paid on 16 July 2004 to holders of Ordinary shares on 
the register at close of business on 18 June 2004.

Although over 20% of the Company's dividend income is received in US dollars,
which have fallen in value against sterling by 7.3% over the six months to 31
December, the strength of the revenue stream across the portfolio remains
secure. The Directors expect to be able to recommend an increase in the total
dividend payment from last year's level of 17.75p. This level of dividend is
expected to be fully covered by earnings and the Company's revenue reserve is
now close to one year's dividend payment.

Outlook

The UK economy is forecast to produce growth in GDP of approximately 2.5% in
2004, which is close to its trend level. This growth will be greater than that
produced in larger European countries but below that of the USA and many Asian
countries. There will be easing in the growth in consumer expenditure, in part
due to the higher burden of debt and the likelihood of further increases in
interest rates.

Valuations for UK equities remain realistic with the prospective P/E ratio of
almost 14 times for 2004. With corporate profits and dividends expected to again
grow in real terms, equities have the potential to deliver further capital gains
during 2004.


MURRAY INCOME TRUST PLC
STATEMENT OF TOTAL RETURN
(INCORPORATING THE REVENUE ACCOUNT)

                                     Six months to 31 December 2003
                                                 (unaudited)
                                      Revenue      Capital    Total
                                        £'000        £'000    £'000

Realised losses on investments              -         (729)    (729)
Unrealised gains/(losses)                   -       38,732   38,732
                                     --------      -------  -------
Gains/(losses) on investments               -       38,003   38,003

Income from investments                 7,637            -    7,637
Other income                               57            -       57
Investment management fees               (620)        (620)  (1,240)
Other expenses                           (462)           -     (462)
                                    ---------      -------  -------
Net return before finance costs         6,612       37,383   43,995
and taxation
Finance costs of borrowing               (400)        (389)    (789)
                                    ---------      -------  -------
Return/(loss) attributable to equity    6,212       36,994   43,206
shareholders

Ordinary dividends on equity           (6,318)           -   (6,318)
shares                              ----------     -------  -------
Transfer (from)/to reserves              (106)      36,993   36,888
                                    ----------     -------  -------

Return per ordinary share (pence)         8.8         52.7     61.6

Notes:

1. The revenue column of this statement is the profit and loss account
   of the company.

2. The financial information for the six months ended 31 December 2003
   and 31 December 2002 comprises non-statutory accounts within the meaning of 
   Section 240 of the Companies Act 1985. The financial information for the 
   year ended 30 June 2003 has been abridged from published accounts that have
   been delivered to the Registrar of Companies and on which the report of the 
   Auditors was unqualified. The interim accounts have been prepared on the
   same basis as the annual accounts.


MURRAY INCOME TRUST PLC
STATEMENT OF TOTAL RETURN
(INCORPORATING THE REVENUE ACCOUNT)
                                       Six months to 31 December 2002
                                                (unaudited)
                                     Revenue      Capital        Total
                                       £'000        £'000        £'000
Realised losses on investments             -      (19,054)     (19,054)
Unrealised gains/(losses)                  -      (60,191)     (60,191)
                                    ---------    ---------      -------
Gains/(losses) on investments              -      (79,245)     (79,245)
Income from investments                7,265            -        7,265
Other income                              80            -           80
Investment management fees              (618)        (618)      (1,236)
Other expenses                          (419)           -         (419)
                                    ---------    ---------      -------
Net return before finance costs and    6,308      (79,863)     (73,555)
taxation
Finance costs of borrowing              (448)        (448)        (896)
                                    ---------    ---------      -------
Return/(loss) attributable to equity   5,860      (80,311)     (74,451)
shareholders
Ordinary dividends on equity          (5,967)           -       (5,967)
shares                              ---------    ---------      -------
Transfer (from) /to reserves            (107)     (80,311)     (80,418)
                                    ---------    ---------      -------

Return per ordinary share (pence)        8.4       (114.4)      (106.0)


MURRAY INCOME TRUST PLC
STATEMENT OF TOTAL RETURN
(INCORPORATING THE REVENUE ACCOUNT)

                                            Year ended 30 June 2003
                                                    (audited)
                                           Revenue   Capital     Total
                                             £'000     £'000     £'000

Realised losses on investments                   -   (35,502)  (35,502)
Unrealised gains /(losses)                       -   (38,609)  (38,609)
                                           --------- ---------   -------
Gains/(losses) on investments                    -   (74,111)  (74,111)

Income from investments                     15,854         -    15,854
Other income                                   187         -       187
Investment management fees                  (1,210)   (1,210)   (2,420)
Other expenses                                (865)        -      (865)
                                           --------- ---------   -------
Net return before finance costs and         13,966   (75,321)  (61,355)
taxation
Finance costs of borrowing                    (845)     (845)   (1,690)
                                           --------- ---------   -------
Return/(loss) attributable to equity        13,121   (76,166)  (63,045)
shareholders
Ordinary dividends on equity shares        (12,461)        -   (12,461)
                                           --------- ---------   -------
Transfer (from)/to reserves                    660   (76,166)  (75,506)
                                           --------- ---------   -------

Return per ordinary share (pence)             18.7    (108.5)    (89.8)


MURRAY INCOME TRUST PLC
BALANCE SHEET

                                 31 December   31 December     30 June
                                        2003          2002        2003
                                 (unaudited)   (unaudited)   (audited)
                                       £'000         £'000       £'000
Fixed assets
Investments                          385,191       340,955     340,789
Current assets
Debtors                                1,183         1,624       1,049
Cash and short-term deposits           2,164         3,853       4,652
                                     ---------     ---------    --------
                                       3,347         5,477       5,701
Creditors
Amounts falling due within one        37,121        16,815      36,961
year
                                     ---------     ---------    --------                                            
Net current liabilities              (33,774)      (11,338)    (31,260)
                                     ---------     ---------    --------
Total assets less current            351,417       329,617     309,529
liabilities
Creditors
Amounts falling due after more        10,000        30,000       5,000
than one year
                                     ---------     ---------    --------
                                     341,417       299,617     304,529
                                     ---------     ---------    --------

Capital and reserves
Equity shareholders' interest:
ordinary called up share              17,551        17,551      17,551
capital
share premium account                  7,955         7,955       7,955
capital redemption reserve             4,050         4,050       4,050
capital reserve - realised           264,737       283,912     266,475
capital reserve - unrealised          35,929       (24,385)     (2,803)
revenue reserve                       11,195        10,534      11,301
                                     ---------     ---------    --------
                                     341,417       299,617     304,529
                                     ---------     ---------    --------

Net Asset Value per Ordinary           486.3         426.8       433.8
share (pence)


MURRAY INCOME TRUST PLC
CASH FLOW STATEMENT

                          Six months to   Six months to     Year ended
                            31 December     31 December    30 June 2003
                                  2003            2002
                            (unaudited)     (unaudited)      (audited)
                                  £'000           £'000          £'000
Operating activities
Investment income                 7,515           7,341         16,061
received
Deposit interest                     51              56            164
received
Underwriting commission               4              27             26
received
Investment management              (876)         (1,669)        (3,206)
fees paid
Secretarial fees paid               (25)            (42)           (63)
Cash paid to and on                 (30)            (27)           (51)
behalf of directors
Other cash payments                (455)           (694)        (1,190)
                               ----------       ---------       --------
Net cash inflow from              6,184           4,992         11,741
operating activities
Returns on investment and
servicing of finance
Interest paid                      (722)           (911)        (1,705)
Financial investment
Purchase of investments         (37,467)        (20,244)       (50,471)
Sale of investments              31,012          15,117         51,157
                               ----------       ---------       --------
Net cash (outflow)/              (6,455)         (5,127)           686
inflow from financial
investment
Equity dividends paid            (6,494)         (7,495)       (13,464)
                               ----------       ---------       --------
Net cash outflow before          (7,487)         (8,541)        (2,742)
use of financing
Management of liquid
resources
Cash taken off/placed             2,155               -         (3,684)
on short term deposit          ----------       ---------       --------
Net cash outflow before          (5,332)         (8,541)        (6,426)
use of financing
Financing
Loans drawn down                  5,000           9,000          4,000
                               ----------       ---------       --------
Net cash inflow from              5,000           9,000          4,000
financing                      ----------       ---------       --------
(Decrease)/increase in           (332)            459         (2,426)
cash                           ----------       ---------       --------



Note 1

The allotted ordinary share capital as of 31 December 2003 was 70,205,458
Ordinary Shares of 25p each.

Note 2
                                              6 months to       Year to
                                          31/12/03   31/12/02   30/06/03

Dividends on ordinary shares
First Interim-4.5p paid on 16.1.04           3,159      2,984      2,984
(2003 - 4.25p)
Second Interim-4.5p payable on 5.4.04 
(2003 - 4.25p)                               3,159      2,983      2,984
Third Interim (2003 - 4.5p)                      -          -      3,159
Final dividend (2003 - 4.75p)                    -          -      3,334
                                          --------   --------  ---------
                                             6,318      5,967     12,461
                                          --------   --------  ---------

Note 3

A summary of investment changes during the period and twenty largest investments
at 31 December 2003 are attached.

By order of the Board

ABERDEEN ASSET MANAGEMENT PLC, SECRETARY

25 February 2004

Copies of this announcement will be printed and issued to shareholders and will
be available to the public at the registered office of the Company, 123 St
Vincent Street, Glasgow.


MURRAY INCOME TRUST PLC
SUMMARY OF INVESTMENT CHANGES
DURING THE PERIOD TO 31 DECEMBER 2003

                                                                     
                                                                   Valuation
                      Valuation                     Appreciation/ 31 December  
                    30 June 2003     Transactions  (depreciation)        2003
                    £'000       %          £'000          £'000   £'000      %

United Kingdom
Equities          340,789   100.4          6,398         38,004 385,191  101.0
                  -------  ------      ---------     ---------- -------  ------
Total Investments 340,789   100.4          6,398         38,004 385,191  101.0
Other net 
 liabilities       (1,260)   (0.4)        (2,514)             -  (3,774)  (1.0)
                  -------  ------      ---------     ---------- -------  ------
Total Assets*     339,529   100.0          3,884         38,002 381,417   100.0
                  -------  ------      ---------     ---------- -------  ------

* Represents total assets less current liabilities after excluding short-term 
  loans of £30,000,000 as at 31 December 2003 and 30 June 2003.

                                                                  Valuation
Summary of net assets                                            31 December
-----------------------                                             2003
                                                              £'000       %

Equities                                                    385,191   112.8
Other net assets                                             (3,774)   (1.1)
Borrowings                                                  (40,000)  (11.7)
                                                             ------  ------
Equity Shareholders' interest                               341,417   100.0
                                                             ------  ------

MURRAY INCOME TRUST PLC
TWENTY LARGEST INVESTMENTS
as at 31 December 2003
                                              
                       Sector                 Valuation           % of
Investment             Description                £'000   Total Assets

BP Amoco               Oil & Gas                 45,300           11.9
HSBC Holdings          Banks                     36,876            9.7
Shell Transport &      Oil & Gas                 28,337            7.4
Trading
Barclays               Banks                     17,603            4.6
Lloyds TSB             Banks                     16,710            4.4
Royal Bank of          Banks                     13,975            3.7
Scotland
Aviva                  Life Assurance            11,913            3.1
Anglo American         Mining                    11,238            2.9
Diageo                 Beverages                 11,025            2.9
BHP Billiton           Mining                     9,810            2.6
Standard Chartered     Banks                      9,594            2.5
GlaxoSmithKline        Pharmaceuticals            8,533            2.2
J Sainsbury            Food & Drug                8,240            2.2
                       Retailers
Great Universal        General Retailers          7,571            2.0
Stores
Abbey National         Banks                      7,169            1.9
Imperial Tobacco       Tobacco                    6,820            1.8
Scottish & Southern    Electricity                6,554            1.7
Energy
British American       Tobacco                    6,122            1.6
Tobacco
Land Securities        Real Estate                5,978            1.6
Unilever               Food Producers &           5,834            1.5
                       Processors               -------       --------
                                                275,202           72.2
                                                -------       --------










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