LLOYDS Bowmaker and United Dominions Trust have taken a step closer with the appointment of a joint managing director. UDT managing director John Davies has stepped down and Bowmaker managing director Peter Hook has been appointed to develop the future strategy of both companies, owned by Lloyds TSB.

The move follows Lloyds' acquisition of UDT parent company TSB last year, which immediately triggered speculation of closer co-operation between the two banks' finance and leasing operations.

UDT currently has more than 50,000 vehicles on contract - either directly, or indirectly through contract hire companies to which they supply finance. A UDT spokesman said it was too early to say whether this was the beginning of a merger process, but admitted that there would be areas where resources would be combined. Lloyds Bowmaker and UDT both established new contract hire ventures last year - Black Horse Vehicle Contracts and First Service.