Gartmore Investments is an international assets management company based in London but with operations on a global scale. After an initial call off of an IPO back in 2007, Gartmore Investments finally came to the market with an IPO in December 2009. Despite the company’s profitable record since the IPO date, the current share price of 105.30p represents a discount of 114.7p on its initial price of 220p. The question for investors is does this represent a bargain share price?
The Underlying Value of Gartmore
The IPO prospectus reveals that performance in 2008 following the results of the recession were frankly appalling, with the company’s EBT represented by a loss of £138.4m against the previous year's profits of almost £15m. However time has passed, and the economy for which Gartmore relies upon for its revenue has improved. By 2009 the company had turned its fortunes around, the annual report posting an EBT of £46.2M with this year's first quarter results showing a strong start to the year.