Aurrigo Share Discussion Threads

[davebowler] 31/1/2011 15:36

Big trades today.

[envirovision] 22/1/2011 11:15

Its not looking like any of these investments will be exited any point anytime soon. Sounds like the superstroy business it a bit hit and miss as well and Kredimart could take years to turn round.

[davebowler] 21/1/2011 14:09

Jan. update is now out and on the website.

[arja] 28/12/2010 12:41

amazing discount to NAV but obviously because there are only 5 investmentsb in a risky sector ! but very tempting to buy if you are a gambler .

[davebowler] 25/11/2010 13:56

Interim Trading Update

Aurora Russia Limited ('Aurora Russia' or the 'Company') today announces a trading update on its investee companies ahead of its interim results for the six months ended 30 September 2010 which are expected to be released in December 2010.

Highlights for the period include:

- Growth in the Russian economy has resulted in improved performance in the Company's investee companies (particularly in the three months ended 30 September 2010).

- The Board currently expects OSG, Unistream and Superstroy to be profitable in the year ending 31 December 2010.

- OSG remains the largest records management company in Russia, Ukraine and Kazakhstan. OSG had a record month in September in terms of revenues which were GBP1.2m, up 40% from the prior year period and representing 9% growth over the previous month.

- Unistream continues to be the leading outbound money transfer company in Russia with c. 21% market share. Unistream's volumes grew 10.9% year-on -year ("YoY") in August and 9.7% YoY in September 2010. August was the first month of YoY volume growth since the financial crisis.

- Superstroy is the leading DIY company in the Urals Region of Russia. It grew its revenues by 32% YoY in September following growth of 28% YoY in August and 23% YoY in July. Superstroy began to grow again in April following the global financial crisis.

- Flexinvest Bank's interest and fee income grew 47% compared to the prior year period and was at GBP746,000 for the nine months ended 30 September 2010.

- Kreditmart's broker fees were GBP424,000 for the nine months ended 30 September 2010, representing a 156% increase YoY.

Update on Russian economy

Russia's economy has returned to growth in 2010 after output contracted 7.9% in 2009 but the economic recovery is still fragile. The moderate growth momentum of the first half of 2010 is in the view of the Board likely to be sustained, with an implied growth of about 4.4% in 2010, strengthening slightly in 2011 (source: Transition Report, European Bank for Reconstruction and Development, 17 November 2010). The key risk to a sustained economic recovery remains the price of oil and other commodities. Higher oil prices and sufficient liquidity in the banking system, as well as the fiscal stimulus package being carried over into 2010, will be the main contributing factors to sustaining economic recovery. Policy-makers are likely to face the challenge of balancing the need to sustain the still fragile economic recovery with fiscal consolidation over the medium term.

The return to growth in the Russian economy has helped all of the Company's investments.

OSG

For the nine months ended 30 September 2010, revenues were GBP9.8m representing an increase of 23% compared to the prior year period. September 2010 was a record month in terms of revenues which were GBP1.2m, up 40% from the prior year period and representing 9% growth over the previous month.

OSG remains the largest records management company in Russia, Ukraine and Kazakhstan. OSG is expanding its operations with the Armenian operation receiving its first boxes under storage contracts that were recently signed in September 2010. In October 2010, OSG added additional racking in its main Moscow facility in Lobnya with capacity for approximately an additional 130,000 boxes which will be utilised in the next few months. The company has also secured additional space in Moscow for up to 500,000 boxes.

Unistream Bank

Unistream transferred RUR84 billion in the nine months ended 30 September 2010. This reflects a decrease of 2% compared to the prior year period. Revenues for the same period were RUR1.5 billion, a 10% decrease compared to the prior year period due to lower commissions being charged as a result of a contraction in the industry of an estimated 27% in USD terms in 2009 and an increase in competition.

Unistream continues to be the leading money transfer company in Russia with c. 20% market share in Russia-outbound remittances as of Q2 2010. In August 2010 Unistream's volumes grew 10.9% YoY, the first month of growth since the global financial crisis. In September 2010 this trend continued with the company transferring approximately RUR12 billion, a 9.7% YoY growth in volume. Unistream continues to explore ways to expand its product range and has begun to grow mobile transfers aggressively with the mobile operators in Russia. In addition, Unistream launched a loyalty programme in August 2010 which has been a success and to date 187,000 customers have been issued with loyalty cards. So far statistics show that on the cards issued up to the end of September 2010 56% were used again in October 2010 in money transfer transactions.

Superstroy Superstroy's revenues increased by 13% compared to the prior year period to RUR4.9 billion for the nine months ended 30 September 2010 and management expects that Superstroy will be profitable for the year ending 31 December 2010.

Superstroy is still the leading DIY company in the Urals Region of Russia which has a population of approximately 20 million people. After a contraction in the DIY market due to the global financial crisis and a fall in revenues in 2009 of approximately 14%, Superstroy's revenues began to grow again in April 2010. They grew by 32% YoY in September following growth of 28% YoY in August and 23% YoY in July. Superstroy is considering growing not only through new store openings, but also through acquisition.

Flexinvest

Flexinvest's interest and fee income grew 47% compared to the prior year period and reached GBP746,000 for the nine months ended 30 September 2010.

Flexinvest Bank is a fully licensed retail bank and is a member of the Russian Government's deposit insurance scheme. Flexinvest continues to issue mortgage loans to its clients. Given the current shortage of long term wholesale funding for mortgages, Flexinvest works with a handful of Russian partner banks for which it writes mortgages for on-sale to them.

Kreditmart

Kreditmart's broker revenues were GBP424,000 for the nine months ended 30 September 2010. This represents an increase of 156% compared to the prior year period, due to the number of approvals received growing significantly. Kreditmart's interest income from its loan book earned GBP230,000 over the same period.

Kreditmart has returned to its core business of broking mortgages now that the mortgage market has begun to grow again. Government statistics show that the volume of mortgages in Russia more than doubled in the first seven months of 2010 to RUR192 billion from RUR82 billion over the same period in 2009

[lufc5] 25/11/2010 13:06

That's not a bad trading statement just out...

[davebowler] 08/11/2010 12:36

Yes good point, surely even Lloyds could make money in a Russian banking business.

[loobrush] 04/11/2010 22:53

lloyds bank just increased holding to 7% holding.This shares is currently valued at half the last published asset value with update due in December which could see asset value substantially ahead of this. With the intention to dispose of holdings and return first amounts of disposal back to shareholders at twice current value its got to be the time to get really on board-what grat backing with lloyds on board, maybe yhey wish to acquire the banking businessthey have.

[davebowler] 22/10/2010 10:10

New monthly update now out.

[tadska] 11/10/2010 17:17

Unistream and IndusInd Bank launch Remittance Service to India
11.10.2010

The Moscow-based commercial bank JCB Unistream, operational and organizational center for the international money transfer system UNISTREAM has entered into an agreement with IndusInd Bank, a well known private sector bank in India to launch remittances to India. India is the largest recipient of remittances across the globe, with an estimated volume for last year being nearly US$ 55 billion.

Under this arrangement, the Remitters would be able to send money from any of the branches of Unistream world wide. In India, IndusInd Bank would directly credit the account of the Beneficiary within a span of 24 hours of having received the money.

IndusInd Bank Ltd had nearly 224 branches & 544 ATMs in India and is expected to expand its network to over 300 branches by the end of this year. The Bank is a major player for Remittances coming into India from GCC region, having tied up with over 40 partners from this region alone.

"Taking into the account the size of the two financial institutions, UNISTREAM's growing international business and IndusInd Bank's recognition in the region, we believe this tie-up is an important milestone in the history of financial sphere of not only India particularly but Asia in general," said Unistream's CEO and President, Souren Hayriyan from Moscow.

"While IndusInd Bank has established itself as a major player in Remittances from Middle East, this arrangement with Unistream will help us tap into India bound flows from Europe & UK as well. It would help NRIs based in Euro Zone send money in a convenient & cost effective manner straight into the bank accounts of beneficiaries in India" said Amit Talwar, SVP & Head Global Remittances, IndusInd Bank, from Mumbai.

Operating in 95 countries around the globe, UNISTREAM serves over 6 million clients a year. It is known for development of several ambitious projects in various world regions

[tadska] 08/10/2010 15:18

Kreditmart:

got investments of over 22 million pounds:

Owner - Facility Aurora Russia .

Volume of investments - 22,5 million pounds (claimed).

Networking - eight regions.

Staff - about 150 people.

[tadska] 08/10/2010 15:17

Flexinvest Bank signed a cooperation agreement with Russia's largest Network of Mortgage Brokers - Independent Mortgage Bureau.

On September 29, 2010, all clients can benefit from mortgage broker program "Flexinvest Bank and receive a discount of 0,5% on the commission for the issuance of mortgage credit.

"We already have experience of mutually beneficial cooperation with credit brokers. Our partners include companies such as Kreditmart" and "Standard Credit." From the cooperation between the bank and credit broker wins first client as a broker in the office he receives specialist advice the services of different banks and can choose the best option for themselves without spending time searching. We are confident that the concluded agreement with the Independent Mortgage Bureau will help increase the volume of deals on mortgages, "- said Marina Mishuris, chairman of Flexinvest Bank .

In turn, General Director Yevgeny NBIK Taubkin said: "We, as mortgage brokers constantly monitors the market and looking for new partners for cooperation, and interest to us as the old players and young banks with new and exciting programs."

About "Flexinvest Bank:

JSC Flexinvest Bank (previously - OJSC "Volga Universal Bank") was founded in 1994. Since April 2008, 100% Bank shares owned by private equity investment fund Aurora Russia Limited.

Flexinvest Bank - commercial bank, actively developing mortgage lending, as well as other types of loans to individuals. The Bank is constantly expanding network of partners - the largest market participants and real estate finance, including banks, mortgage brokers and real estate agencies. Today, among the Bank's partners - HMLA, financial company Kreditmart, LLC BENCHMARK CREDIT ", a real estate agency Miel", "BEST", "Family Investments, Kutuzov prospect, etc.

License CBRF N3089 from 29.09.2008 In December 2004, the Bank is a member of the Russian deposit insurance system. Credit-cash office of JSC "Flexinvest Bank opened in St. Petersburg and Yekaterinburg.

About the Independent Mortgage Bureau '

Company Independent Mortgage Bureau (NBIK) - founded in August 2004 and is today the largest mortgage brokerage company in Russia. In April 2007, opened the All-Russian NBIK Mortgage Network - Russia's largest network of companies - mortgage brokers. To date, opened 86 offices in 59 cities of Russia. By the end of next year will attract more than 100 regional partners, covering all regions of Russia

[tadska] 07/10/2010 18:12

OSG Conclusion,

1.Meeting in August with over 60 representatives of major Russian banks.

2. New three job positions today.

They must have some new contracts, more money,very good...

[tadska] 07/10/2010 17:59

OSG Records Management participated in a roundtable discussion of the Association of Russian Banks, "The organization of documents and archival documents in a commercial bank, last August 12, 2010 in Moscow, on a ship Maxim Gorky.


August 12 on the ship Maxim Gorky in Moscow held a round table of the Association of Russian Banks. The main theme of the roundtable was the "Organization of document management and archiving of documents in a commercial bank."

The meeting was attended by over 60 representatives of major Russian banks, as well as leading the company's organization and management of electronic document. OSG Records Management, a leader in archival paper and electronic media, scanning of documents and data backup, took part in a roundtable discussion.

Key issues at the meeting were related to the scientific and methodological support of work with electronic documents, as well as the peculiarities of the implementation of the Bank of Russia on 25.11.2009 № 2346-V "Storage of a credit institution in an electronic form of individual documents related to the design of accounting, settlement and cash operations at the organization work on accounting. "

"As experts in the field of storage of paper and electronic media, we stress the importance of competent management of electronic documents in credit organizations in Russia. Compliance with all regulatory requirements for storage media electronic documents and complete data security of our customers - the highest standards of service OSG. This event once again demonstrated the readiness of Russian companies to develop the industry of electronic document management and deployment of innovative technologies in the work of commercial banks. Our company is at the forefront of electronic document management and offsite storage media, and we strive to promote the industry in all segments of the Russian business ", - said Irina Talanova, Business Development Director, OSG Records Management.

Catherine Tyshler,
PR-manager
OSG Records Management
[phone]

[tadska] 07/10/2010 17:54

OSG - Aurora has 95.5% stake. Looks like OSG is growing, three new job roles require in Moscow:

[tadska] 06/10/2010 17:49

envirovisionyes yes mate I notice that Unistream are busy. I watch russian tv channels every day and every 20 minutes they are showing Unistream commercial.
I will look for more news this later this week, as I am a bit busy at the moment.
One for shure is that Aurora is significaly undervalued.

[envirovision] 06/10/2010 17:33

tadska, aside from Flex which will be doing more mortgage business, i also see Unistream has been busy over the summer, both obtaining a licence to push into the EU as well as into Canada. Both these assets got clobbered in the credit crisis and I expect be could be in for quite a jump in the NAV should they choose to revalue them now.

Source:

[envirovision] 06/10/2010 11:26

and it ticked up after my buy, looks as theres some mighty fine buying volume coming in this morning.

[envirovision] 06/10/2010 11:19

I am starting to build my stake up here again now.

edit thanks for mortgage info, may help kick start the fortunes of AURR's bank stake.

[tadska] 05/10/2010 15:35

That what I call NEWS:

Volume of mortgage loans doubles says Putin
18:11 05/10/2010

MOSCOW, October 5 (RIA Novosti) - The amount of mortgages issued in Russia in the first seven months of 2010 more than doubled year-on-year, Prime Minister Vladimir Putin said at an investment forum on Tuesday.

"The volume of issued mortgages from the start of the year has more than doubled - from 82 billion rubles ($2.7 billion) in 2009 to 192 billion rubles ($6.3 billion) in 2010," Putin said at the VTB Capital forum.

He also said the demand for loans was increasing.

"People are ready to invest funds to buy housing," Putin said. "That is why the emphasis of state policies has shifted toward stimulating the housing market."

Very good for Aurora..

[davebowler] 22/9/2010 10:31

The new monthly report is out and highlights the new Superstroy online shopping facility.

[davebowler] 16/9/2010 16:52

Merrill Lynch on the Rouble, mostly;





Bottom line
n We are still optimistic about medium-term RUB prospects in line with our COMPASS valuation model, although we see enough domestic and external reasons for RUB weakness in the coming months, in particular towards the end of the year.

Why it matters
n The RUB has found itself subject of speculation over the last couple of days as the currency basket has moved sharply higher, breaking the 35 level. There is uncertainty as to what exactly were the driving forces behind the currency gyrations and we attempt to shed some light by taking a closer look at the macroeconomic fundamentals.

The details
n The currency long-term valuation is still currency bullish. Our medium-term COMPASS framework is supportive of the currency and sees the RUB at about 20% undervalued relative to fundamentals (EM Monthly: EMFX doldrums). However, the last estimation was done in November 2009 and since that time the REER (real effective exchange rate) has appreciated significantly, probably eroding somewhat the undervaluation gap.

n REER has already surpassed its pre-crisis levels. The REER collapsed in the aftermath of the crisis in line with the official devaluation in February 2009, but has since not only regained its losses, but has actually surpassed its pre-crisis maximum. That level was widely regarded at the time of the crisis as being consistent with an overvalued currency. If correct, this would suggest a broadly similar picture at current levels of the REER.

n The Central Bank is gradually moving towards inflation targeting, supporting higher RUB volatility. One of the key policy messages from the crisis is that the pre-crisis policy of keeping the currency tightly managed brought about higher rates of inflation. Despite the broadly prudent macroeconomic policy that Russia pursued pre-crisis and the many macroeconomic achievements, inflation was the one important macro parameter that the authorities seem to have failed to cope successfully with. Now that the central bank is on a transition course from targeting the exchange rate to targeting the inflation, we think higher currency volatility is something that market participants should start taking for granted. Therefore, sharper currency moves should be perceived as the price to pay for having lower inflation exactly in the same way as higher inflation was the price to pay for having a broadly constant exchange rate.

n Competitiveness issues have started to bite again. The authorities might be more receptive to seeing upward moves in the basket as it directly affects external competitiveness. Although, in our view, signs of Dutch disease started to become more pronounced only in 2004, intensifying in the later years in line with booming energy prices, these symptoms moderated at the start of 2009 as the currency depreciated. However, in late 2009 and so far in 2010 external competitiveness has taken a turn for the worse as oil prices have again recovered from their 2009 lows (Russia's New Normal: Less Growth, Less Risk). Although our New Normal view on Russia points to less competitiveness pressures in the medium term under the assumption of oil prices hovering between USD70-80, currently the productivity differential between Russia and its trading partners fails to keep pace with the REER, suggesting rising competitiveness pressures.

n Softness in Q3 data accentuates the gloomier picture. We recently downgraded 2010 GDP growth to 4.5% from 5.5% on the back of concerns related to the drought. July and August data, in particular on the production and investment side, lends support to this view as real investment and industrial production came in weaker than expected. Even though consumption indicators such as real disposable incomes, real wages and real retail sales have so far held up relatively well, the knock-on effect of the loss of production will affect real GDP in Q3 2010. Although we envisage this to be only a temporary phenomenon, it has certainly contributed to the overall sense of uncertainty in the economy.

n External redemptions have picked up. September is a local maximum for redemptions with USD8.3bn, up by 50% relative to Aug. After that there is a real squeeze starting in November when redemption pick-up to USD8.8bn and culminating in the year's maximum of USD15.8bn in Dec.

n Trade balance has deteriorated. While redemptions' significance for the RUB performance will likely pick up by year-end, we think that what is probably more important now is the gradual deterioration of the trade balance. For example, while it was running at a monthly surplus about USD15bn in Q1, it has eased to USD13bn in Q2, USD10bn in July and preliminary data for August indicates that this trend is bound to continue. Interestingly, this deterioration correlates well with RUB/BASKET dynamics over the last couple of months. The worsening of the trade balance itself has so far been primarily driven by higher imports while exports have remained broadly constant. However, in line with our gloomier global view, we expect exports to be also hit in September-December against the background of imports that maintain their momentum on back of recovering wages, disposable income and consumer spending, further suppressing positive RUB moves

n Fiscal picture will be bleaker by December. The fiscal performance has been very good during January-August, with the deficit well short of annual plans at only 2.3% of GDP versus the 5.4% of GDP envisioned in the budget. We think that the better oil price background will imply a lower annual deficit of around 4.3% of GDP, but the traditional acceleration of budget spending in Q4 may also imply unfavourable currency moves.

n Risks to this view. Higher price growth and interest rates by year-end may throw a spanner into the works of the RUB If the "inflation genie comes out of the bottle". Should inflation accelerate beyond our market-low forecast of 8% Dec/Dec (6.1% yoy in Aug), one may imagine a scenario where the central bank hikes before year-end, thus propping the currency.

n On balance, there seems to be enough macroeconomic momentum against the currency, but solid fundamentals and undervaluation argue against feeling miseRouble beyond the next couple of months.

[batman9] 10/9/2010 10:47

It gets a mention in Investors Chronicle today -Aurora Russia has perked up nicely - but this fund is hugely undervalued at 32p against a net assett value of 88p a share