OSG Records Management

In 2006, Aurora Russia Limited invested $9.4m for a 37.1% of OSG and also provided the company with a convertible loan facility of $5m. In March 2009 a further $1 million convertible loan facility was agreed to finance further capital expenditure, primarily for warehouse racking to meet growing storage demand. In January 2010 it bought out other shareholders of OSG and agreed to acquire option shares from the previous management which represented approximately 2% shareholding. Concurrently with the last transaction Aurora agreed to increase the employee option pool to a maximum of 10% which results in ARL’s 90% current shareholding in the company on a fully diluted basis.

Market Leader

OSG is a leading records management provider with operations in Russia, Poland, Ukraine and Kazakhstan. The company also has joint venture operations in China, Saudi Arabia and Turkey. Their business is the processing, scanning and safe storage of documents and data through a network of 24 specialized service facilities.

Expanding to meet increasing demand in Russia

OSG’s core market is Russia, where they set up a operations in 1988 with a single facility in Moscow. Over the subsequent period, the company has grown in line with a steep increase in demand. Today, OSG employs a 350 strong workforce to service over 1000 clients. The company has an unrivalled network of facilities covering the major cities of Moscow, St Petersburg, Samara, Ekateringburg, Nizhniy Novgorod, Ufa and Novosibirsk.

Market growth has been fuelled by Russian companies seeking to improve performance by outsourcing their records management requirements. In addition to contracts with major multi-nationals, OSG’s client base has grown to include Russian banking, telecoms, retail, insurance and service sector giants.

OSG Records Management

A dynamic growth company

The directors of Aurora Russia believe that OSG RM Group currently controls the largest share of the outsourced records management market in Russia. Investment in new hi-tech scanning and data processing technology, has ensured the company is in the position to capitalise on the region's growth in banking, professional services and telecommunications. OSG continues to expand in Moscow and the regions.

The company has demonstrated significant growth since it entered the Russian market in 1998. Revenues grew at a compound annual growth rate of 58% from 2000 through to 2005. Revenues in 2006 were approximately US$ 8m. In 2007 they grew to approximately US$ 10.6m an increase of 33%. Valuation details can be viewed in Aurora Russia Limited’s Results which are posted in the Press Room.

OSG Records Management