Ernst Russ - Sailing through the storm

In FY19 Ernst Russ (ERAG) strategically repositioned itself to focus on its investor and asset manager activities in shipping and fund management (particularly real estate). Over the year assets under management (AUM) decreased from €2.9bn to €2.0bn, driven by disposals of non-core business units. Although management expects further improvement in FY20 shipping segment revenue, it is likely to be fully offset by the absence of sold businesses. In light of current adverse markets, it guides to lower overall performance and operating income, although the extent will depend on economic and market conditions. Therefore, the key focus for 2020 is to secure liquidity, targeting stable cash levels over the year.