For your info. I don't have a stake in this company, yet, but my attention was drawn by an article in the INvestor Chronicle, which listed IMR as one of 6 potential recovery plays for 2007.
".. business is picking up in Germany along with the Eurozone economy. IMR has transformed its business model by removing the hefty swap body and trailer assets from its German business through a sale and lease back agreement - a deal that could be repeated in the UK
The deal sees a German finance house (GFH) take ownership of the assets. IMR effectively becomes the manager, with the added bonus of cleaning up its balance sheet and leaving it with a cash surplus. In addition, the GFH is keen to fund te purchase of more swap bodies and trailers, which allows IMR to increase its fleet at significantly lower cost. In the early months of 2007, it will increase its swap body fleet in Germany by 38%.
In the short term this radically changes IMR's business model and will mean less turnover going through its books as it will merely be charging a commission on the swap body rental. However, the profits should be broadly similar, and the company is now backed by a £1.5MM cash pile. It's share price has been hammered by one significant shareholder selling down a stake, but this overhang is now gone. So after falling from 11p to below 5p, this share could be ripe for a re-rating. At current price (5p then) shares are 8.1x expected FY earnings, and 6.95x in 2007."
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