Trinity lines up Malaysian bus deal as profits leap

TRINITY Holdings, the buses and dustcarts manufacturer, expects a planned joint venture to build vehicles in Malaysia to go ahead, despite the recent Pergau dam threat to British trade.

Geoff Hollyhead, chairman, said Trinity was near signing an agreement with UMW, a state-owned company, to make up to 2,000 buses a year.

The venture would also provide a low-cost entry into other Asiatic countries in the future.

The deal with UMW, one of Malaysia's largest engineering firms, needed government approval, though recent talks suggested the agreement would be signed soon.

It would be Trinity's first overseas manufacturing operation, and tentative discussions had also taken place about a joint venture in China, Mr Hollyhead said.

The news accompanied Trinity's profits for the year to 31 January, which jumped 50 per cent to pounds 10.6m and sent the shares up 18p to 308p. Turnover rose pounds 24m to pounds 136m.

Mr Hollyhead said Trinity's order book was at record levels despite output of vehicles last year rising by almost 1,000 to 3,439. Exports increased 70 per cent to pounds 59m. 'Since the year-end the level of sales activity at home and abroad has remained high and further growth in output is planned in the immediate future.'

He said the company was debt- free, with pounds 7.2m cash in the bank at the year's end. The final dividend is 4.2p, making a total of 6.2p (1.5p).