Investment services firm LOM has posted a profit of nearly $433,000 for the first half of the year.

The figure is an improvement of more than $381,000 on the same period last year.

Scott Lines, chief executive officer of LOM, said the company will be opening a new branch in the Caymans, while there is a new building for the Bahamas operation.

Mr Lines said the offices were expected to attract new business, but would raise costs in the short term.

“Overall, we remain cautiously optimistic for the remainer of the year,” he said.

“Though we are continuing to win new assets, we will see an increase in costs in the second half of the year that will be a short-term drag on profits.”

Management and advisory fee revenues rose 27 per cent to $1.95 million over the six-month period, while broking fees generated $1.46 million, which was an 84 per cent increase on the same period last year.

Other income went up by 15 per cent to $523,444, while net interest income went up two per cent to $484,537.

Foreign exchange income rose four per cent to nearly $171,000, but fees from corporate finance work fell by three per cent to $17,500.

Costs for the LOM group went up by nearly a quarter, with total operating expenses, outside commission payments, rising 15.4 per cent and employee compensation up 10.6 per cent.

The firm had $796 million in assets under administration at the end of the period, $110 million up on the $686 million at the end of December.

Mr Lines said the firm was in “a strong financial position” with net equity of $17.5 million and no debt.

He added: “The board of directors of LOM has decided that as earnings have increased, we are going to pay a modest annual dividend of one cent per share to shareholders of record at August 10 to be paid on August 17.

“We understand that the shareholders have not received any dividends for some years and thank them for their patience.

The LOM board also approved continuation of its share buyback for cancellation for a total of not more than 200,000 shares.

Over the first half of 2017, the company bought for cancellation 2,000 shares at an average price of $2.50.

The company had 5,994,878 shares issued and outstanding at the end of June.

Mr Lines said: “Our current share price on the Bermuda Stock Exchange is $2.55 and our current market capitalisation is $15.29 million.”