Half-yearly report

AURORA INVESTMENT TRUST plc

Half Yearly Report
For the six months ended 31 August 2009


INTERIM MANAGEMENT REPORT
AND CHAIRMAN'S REVIEW

Half year to 31st August 2009


The Half Year Returns:           Net Asset  Value: 163.0p           +
51.1p            + 45.7%
                                                   Share    Price:
140.0p             + 56.0p            + 66.7%
Benchmark:    2,520.7            + 590.9            + 30.6%

The last six  months have  seen a  quite remarkable  recovery in  the
fortunes  of  the  stock  market  but,  much  more  importantly   for
shareholders, the  period has  witnessed a  huge rebound  in the  net
asset value and the  price of the Company's  shares.  The end of  the
Company's last  year -  28 February  2009 -  was quite  close to  the
bottom of the very severe set back in the stock market which  started
a year ago  with the  demise of  Lehman Brothers  and the  subsequent
banking crisis.  Our benchmark, the FTSE All-share Index, which stood
at 1,929.8 at our  year end, was  to hit a low  of 1,755.8 nine  days
later but recovered to 2,520.7 by our half year end - a rise of 30.6%
over these six months.

I am very pleased to be able to report to you that our own net  asset
value rose by 45.7% - or by 51.1p - to 163.0p per share over the same
period.  It is particularly  pleasing to be in  a position to  report
such good returns given that shareholders have had a very lean period
over the  last few  years -  in  part because  of our  own  portfolio
difficulties and in part because of the financial crisis.  It is  not
only good to be able to  report a positive return for shareholders  -
which after all is why we are in business - but particularly good  to
have produced returns  so much  better than the  stock market  itself
(+45.7% v. 30.6%).

It is also pleasing to be able to report that the discount to the net
asset value at which the  shares sell has declined considerably.   It
had stood at 24.9% at  our year end -  an unacceptably high number  -
but, by the end of  August, it had come back  to 14.1%.  It is  still
too high but, given our recent returns, it is not surprising that the
market has not  yet put a  higher rating  on our shares.   If we  can
continue to produce the sort of returns that we have in the last  six
months then it is likely  that we will see  a further decline in  the
discount.




Investment Themes:

Shareholders will be familiar with  the approach that James  Barstow,
our investment  manager,  adopts  in constructing  and  managing  the
Company's portfolio - it involving the identification of themes which
fit the economic and financial  circumstances of the time.  From  the
beginning  of  the  Company's  life  in  1997,  certain  themes  were
identified that  were taken  advantage of,  the investment  in  which
proved to be highly profitable;  importantly they centred around  the
economic benefits of disinflationary growth as a result of technology
and productivity and of the low cost of Chinese imports.  We have  to
hold our hands  up and say  that in certain  areas we overstayed  our
welcome and the gains we had made suffered as a consequence.  We  are
aware that themes evolve and change over time.

As I mentioned in the Chairman's  statement in the annual report  the
Board of Directors has had extra  meetings in the last twelve  months
to focus on  the long term,  including an examination  of our  themes
that we  have been  following in  the light  of some  very  different
circumstances which have emerged  in recent times  and to look  ahead
and identify  what themes  now seem  pertinent.  There  are two  main
themes that strike us as rather different from those of 1997 when the
Company was launched.

Firstly,  following  twelve  years   of  considerable  economic   and
financial mismanagement by the  present government, the economic  and
financial circumstances of the UK  are today markedly different  from
those  that  this  government  inherited  when  it  came  to  office:
succinctly put,  it  has spent  its  inheritance and  more.   So  our
portfolio themes are  now dominated by  investment in companies  with
exposure to overseas  economies, most particularly  those in the  Far
East.

Secondly the events of the last few years have created a shortage  of
investment income in financial markets.  Interest rates have been cut
to -  effectively  -  zero,  there  have  been  large  dividend  cuts
(particularly by  our banks  whose dividends  used to  account for  a
significant proportion of the  dividends paid by British  companies),
pension benefits are being reduced,  rental income is falling,  taxes
are being  raised  and  it  is  all happening  at  a  time  when  the
population is ageing and unemployment is rising.  Shares in companies
with secure and rising dividends accordingly will be in  considerable
demand, a feature that we are taking advantage of.

As part of our efforts to keep shareholders informed of the status of
the portfolio,  any changes  and  its returns,  we are  proposing  to
introduce a monthly  fact sheet  which we  will post  on the  website
www.marsassetmanagement.co.uk



Prospects:

It is frankly difficult to make any form of forecast about the future
prospects for the UK economy and thence about its financial markets.
Huge quantities of money have been thrown at the banking sector in an
effort to bail  it out and,  for now at  least, financial  conditions
have been stabilised.  However the question  in the air is - at  what
cost?  The causes  of the  crisis - a  nation living  way beyond  its
means,  the   consequent  build   up   of  huge   debts,   regulatory
mismanagement and extensive City  greed - would all  seem to be  very
much alive and well.   The crisis should  have changed the  behaviour
that caused it in the  first place, but has  not done so.  It  leaves
the question of "what next?" unanswered.  In truth, we don't know the
answer (nor, we believe, does anyone else); we remain in  unchartered
waters.  We could be faced with low or even no economic growth or  we
could be  faced  with  considerable  inflation;  these  are  but  two
possible outcomes.

It is, however, not our job  to run the portfolio employing  guessing
games.  It is rather our job to identify those areas that can prosper
in the current  circumstances - whatever  may happen to  UK PLC.   We
have now identified themes, including the two mentioned above,  which
should allow us to pick shares that will produce positive returns for
shareholders.  We also believe that  the portfolio should generate  a
growing income base that should in turn allow us to continue to raise
the dividend - at  least in line with  inflation; in that respect  we
have been building our  revenue reserves, which  should give us  some
flexibility in the management of the portfolio.

It is early days in  terms of all of this  but these last few  months
have proven to be an excellent start.


Alex Hammond-Chambers
Chairman
2 October 2009


DIRECTORS STATEMENT OF RESPONSIBILITY
FOR THE HALF YEARLY REPORT


The Directors confirm to the best of their knowledge that:


  * The condensed set of financial statements contained within the
    half yearly financial report has been prepared in accordance with
    International Accounting Standard 34 "Interim Financial
    Reporting"; and
  * The interim management report includes a fair review of the
    information required by 4.2.7R and 4.2.8R of the FSA's Disclosure
    and Transparency Rules.


The half yearly financial report was approved by the Board on 2
October 2009 and the above responsibility statement was signed on its
behalf by:


Alex Hammond-Chambers
Chairman

SECTOR BREAKDOWN
Versus FTSE All-Share Index
As at 31 August 2009


                                   SECTOR                                       AURORA            FTSE
                                                                                       All-Share
                                                                                  %                %

Oil & Gas                                                                       12.56            18.28
Industrials                                                                      5.90             6.83
Consumer Goods                                                                    -              11.45
Health care                                                                      9.33             8.11
Consumer Services                                                               10.26             9.82
Telecommunications                                                                -               6.02
Information Technology                                                           5.11             1.39
Financials                                                                      31.48            24.60
Resources (Mining)                                                              23.07             9.99
Utilities                                                                        2.27             3.51
Investment Cash                                                                  0.02              -

                                                                                100.00           100.00

Ordinary                                                                        91.13              -
Fixed Interest Securities                                                        8.87              -

                                                                                100.00           100.00



TOP TEN HOLDINGS
at 31 August 2009


            Stock                Description      Valuation   % of
  All holdings shown are of                         £'000   Portfolio
ordinary shares, unless shown
          otherwise

BTG                           Pharmaceuticals &
                              Biotechnology         2,298      9.3
Kazakhmys                     Mining                1,235      5.0
Asian Citrus                  Food                  1,219      5.0
BP                            Oil Exploration       1,197      4.9
Aviva                         Insurance             1,137      4.6
Prudential                    Insurance             1,071      4.4
Standard Chartered            Banks, retail         1,047      4.3
Xstrata                       Mining                1,033      4.2
RSA 8.5%                      Fixed Interest         980       4.0
Antofagasta                   Mining                 958       3.9

Total top ten holdings                             12,175     49.6
Other investments                                  12,443     50.4
Total non-current investments                      24,618    100.00



CONSOLIDATED INCOME STATEMENT


                     6 months to 6 months to 6 months to   6 months to 6 months to 6 months to
                         31 Aug.     31 Aug.     31 Aug.   31 Aug.2008     31 Aug.     31 Aug.
                            2009        2009        2009                      2008        2008
                     (unaudited) (unaudited) (unaudited)   (unaudited) (unaudited) (unaudited)

                         Revenue     Capital       Total       Revenue     Capital       Total
               Notes       £'000       £'000       £'000         £'000       £'000       £'000
Gains and
losses on
investments
Gains/(losses)               229       6,716       6,945          (40)     (1,424)     (1,464)
on fair value
through profit
or loss
investments

Income
Investment                   524           -         524           593           -         593
income
VAT reclaim                    -           -           -            48           -          48
interest
Other              3           -           -           -            13           -          13
operating
income
                             524           -         524           654           -         654

Expenses
Investment                  (40)        (40)        (80)          (49)        (49)        (98)
management
fees
VAT reclaim                    -           -                       184         184         368
Other expenses              (86)           -        (86)         (116)           -       (116)
                           (126)        (40)       (166)            19         135         154

Profit/(loss)                627       6,676       7,303           633     (1,289)       (656)
before finance
costs and tax

Finance costs               (21)        (21)        (42)          (16)        (16)        (32)
Exchange                       -           -                         -         (8)         (8)
differences
                            (21)        (21)        (42)          (16)        (24)        (40)

Profit/(loss)                606       6,655       7,261           617     (1,313)       (696)
before tax

Tax                            7           -           7            11           -          11

Profit/(loss)                613       6,655       7,268           628     (1,313)       (685)
for the period

Earnings per       5       4.73p      51.38p      56.11p         4.82p    (10.07p)     (5.25p)
share




The total  column of  this statement  represents the  Group's  Income
Statement, prepared  in  accordance  with  IFRS.   The  supplementary
revenue return and  capital return  columns are  both prepared  under
guidance published by the  Association of Investment Companies.   All
items in the above statement derive from continuing operations.   All
income is attributable to the equity holders of the parent  company.
There are no minority interests.


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY


                              Six months    Six months
                                 Ended         ended      Year ended
                               31 August     31 August    28 February
                                 2009          2008          2009
                        Notes
                              (unaudited)   (unaudited)    (audited)
                                 £'000         £'000         £'000

Opening balance                 14,488        27,618        27,618

Profit/(loss) for the
financial period/year            7,268         (685)       (11,623)

Purchase of own shares    4        -          (1,099)       (1,099)

Dividends paid or
legally committed to be
paid on ordinary shares   6      (647)         (408)         (408)

Closing balance                 21,109        25,426        14,488




CONSOLIDATED BALANCE SHEET


                         At 31 August   At 31 August   At 28 February
                                 2009           2008             2009
                          (unaudited)    (unaudited)        (audited)
                                £'000          £'000            £'000
Non-current assets
Investments - fair value       24,618         23,344           14,242
through profit or loss

Current assets
Investments held for              742            206                -
trading
Other receivables                 219            552              186
Cash and cash                     579          1,373              908
equivalents
                                1,540          2,131            1,094

Current liabilities
Bank overdraft                (4,967)              -            (675)
Other payables                   (82)           (49)            (173)
                              (5,049)           (49)            (848)


Total assets less              21,109         25,426           14,488
current liabilities

Equity attributable to
equity holders
Share capital                   3,598          3,598            3,598
Share premium account          10,997         10,997           10,997
Capital reserves                6,377         10,909            (278)
Revenue reserve                   137           (78)              171

                               21,109         25,426           14,488




    Net asset value per ordinary    162.98p      196.31p      111.86p
share

    No. of ordinary shares in    12,952,250   12,952,250   12,952,250
issue (excluding shares
    held in
Treasury)
    No. of ordinary shares held   1,439,139    1,439,139    1,439,139
in Treasury



CONSOLIDATED CASH FLOW STATEMENT
For the six months ended 31 August 2009


                                                   2009          2008
                                                  £'000         £'000
                                            (unaudited)   (unaudited)
Cash flows from Operating Activities
Cash inflow from disposal of non-current          5,311        11,340
operating assets
Cash outflow from purchase of non-current
operating assets                                (8,974)       (7,735)
Cash inflow from revenue income
                                                    407           573
Cash inflow/(outflow) from trading current
asset investments                                 (513)         (246)
Cash outflow from revenue expenses
                                                  (174)         (243)
Tax recovered/(paid)
                                                      7            24
Net cash flow from operating activities
                                                (3,936)         3,713

Financing
Purchase of own shares
                                                      -       (1,099)
Equity dividends Paid
                                                  (647)         (408)
Interest paid                                      (38)          (80)
Increase/(decrease) in bank borrowings            4,292       (1,067)

Net cash flow from financing activities
                                                  3,607       (2,654)

Net (decrease)/increase in cash and cash
equivalents                                       (329)         1,059

Cash and cash equivalents at beginning of
period                                              908           322
(Decrease)/increase in cash
                                                  (329)         1,059
Effect of foreign exchange rate changes
                                                      -           (8)
Cash and cash equivalents at end of period
                                                    579         1,373


NOTES

1.   Status of the financial statements
These financial statements are not the Group's statutory accounts as
defined in section 240 of the Companies Act 1985. The financial
information for the half years ended 31 August 2009 and 31 August
2008 has not been audited.

The information for the year ended 29 February 2009 has been
extracted from the latest published audited financial statements.
The audited financial statements for the year ended 29 February 2009
have been filed with the Registrar of Companies.  The report of the
auditors on those accounts contained no qualification or statement
under section 237(2) or (3) of the Companies Act 1985.

The directors approved the half-yearly report on 2 October 2009.
This report is being sent to shareholders and copies will be made
available to the public at the registered office of the Group.

2.   Accounting policies
The half-yearly financial information has been prepared on the basis
of the recognition and measurement requirements of International
Financial Reporting Standards (IFRS).  The accounting policies are
unchanged from those used in the last annual financial statements.

3.   Other operating income
Other operating income comprises bank interest.

4.   Purchase of own shares
The Company did not make any further purchases of its own shares
during the period ended 31 August 2009.  A total of 1,439,139 shares
are being held in Treasury and are available for re-sale.

5.   Earnings per share
Returns for  the  period  ended  on 31  August  2009  are  stated  by
reference to 12,952,250 shares in issue during the period,  excluding
shares held in Treasury (2008: weighted average of 13,037,141  shares
in issue, excluding shares held in Treasury).

6.   Dividends
In accordance with the stated policy  of the Group, the directors  do
not recommend an interim dividend.

The final dividend  and a  special dividend  in respect  of the  year
ending on  28  February 2009  were  declared by  the  Annual  General
Meeting on  15  July 2009  and  were paid  on  23 July  2009.   These
dividends were not  reflected in  the financial statements  as at  28
February 2009, but are reflected in the financial statements as at 31
August 2009.

7.   Related party transactions
Fees payable  to the  Manager are  shown in  the Consolidated  Income
Statement.  £15,555 was  payable to the  Administrator in respect  of
the period.  Fees were accrued of  £16,076 to the Manager and  £3,081
to the Administrator at 31 August 2009.




DIRECTORS AND ADVISERS


DIRECTORS                        INVESTMENT MANAGER
RA Hammond-Chambers (chairman)   Mars Asset Management Limited
MJ Barstow FCA                   10-11 Charterhouse Square
DH Hunter (retired 15 July2009)  London EC1M 6LQ
R Robinson                       Tel:  [phone]



STOCKBROKER                      SECRETARY & REGISTERED OFFICE
Cenkos Securities plc            Cavendish Administration Limited
6,7,8 Tokenhouse Yard            145-157 St John Street
London EC2R 7AS                  London EC1V 4RU


BANKERS                          ADMINISTRATORS
Lloyds TSB Bank plc              Cavendish Administration Limited
34 Moorgate                      145-157 St John Street
London EC2R 6PL                  London EC1V 4RU


CUSTODIAN                        AUDITORS
The Northern Trust Company       Grant Thornton UK LLP
50 Bank Street                   30 Finsbury Square
London E14 5NT                   London EC2P 2YU


REGISTRARS                       SOLICITORS
Capita Registrars                CMS Cameron McKenna
Northern House                   Mitre House
Woodsome Park                    160 Aldersgate Street
Fenay Bridge                     London EC1A 4DD
Huddersfield HD8 0LA


Registered in England no. 3300814

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