City File: Trio kick-off

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The Independent Online
SOME reckon the revamped Trio Holdings could kick off the New Year with a bang, following its takeover of the Martin Bierbaum money-broking business. Trio is suspended after a placing and rights issue at 50p a share to fund the deal, but will start trading again in two weeks. The revamped group reckons it will have made at least pounds 6.5m for the year that ended in September. At the 50p rights price, the historic multiple would be only 8.6 times earnings and the dividend 8 per cent gross. When trading re-starts, the shares are likely to open at a handy premium. For 60p or less, they look well worth tucking away.

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