LOM (Holdings) Ltd. suffered a $357,286 net loss during the first half of 2010 despite seeing a rise in revenues.

The net loss compared to a $725,632 net loss for the same period in 2009, as reported in a letter to shareholders from LOM CEO Scott Lines.

But LOM saw a stabilisation of revenues, which were up 13 percent year on year, during the opening six months of this year .

Revenues from broking fees rose 3.5 percent to $1.88 million, or 48 percent of revenues, year on year, as did management and advisory fee revenues, up 5.6 percent to $724,313, while fees from corporate finance work climbed by a factor of five to $114,107 and foreign exchange revenues increased 250 percent to $451,575.

Net interest earnings rose 19 percent to $325,061, investment services income was up 21.5 percent to $546,598, and loss of securities held in inventory rose seven times to $179,948.

On an operating basis the group made a small loss, however it also marked down long-term Bermuda securities owned. Its costs rose slightly due to higher commission payments, but excluding this its costs declined two percent year-on-year.

LOM's employee expenses also fell 10.6 percent as the company reduced its head count.

Overall the company expects its costs to increase in the second half of the year as it continues to invest in new brokers and systems for the company, which will be partially offset by a reduction in expenses due to the closure of its Cayman subsidiary.

In his letter, Mr. Lines wrote: "Due to the un-precedented global fiscal stimulus in 2009 and a consequent economic recovery, global equity markets began 2010 under a much better tone than last year. The first four months of the year witnessed gradually rising share prices and business and investor confidence. As investor confidence recovered the group saw a general increase in transaction volume.

"Unfortunately this May witnessed the eruption of the Greek fiscal crisis and the attendant destabilisation of the other fiscally challenged European economies. Serious questions were raised about the long term viability of the Euro and resulted in a surge of volatility throughout global markets.

"The European problems, when combined with a disappointing moderation of US economic growth and the managed slowdown of the Chinese economy, have raised significant fears of a double dip recession in the West.

"This caused a sharp general stock market sell-off with the inevitable reduction of our brokerage activity."

LOM's assets under administration were $785 million as of June 30, 2010 versus $796 million at the end of 2009, while it also has net equity of $18.6 million and no debt, and holds cash and equivalents of $3.2 million, representing 17 percent of net equity, with a book value of $2.99 per share as of June 30, 2009.

The company said it will pay a dividend of one cent per share to shareholders of record at August 9 on August 15, with a current share price of $3.10 on the Bermuda Stock Exchange and a current market capitalisation of $19.3 million.

During the first half of 2010, LOM purchased 20,000 shares for cancellation and in a separate filing to the Bermuda Stock Exchange yesterday announced its intention to repurchase more.

"In view of the disparity between the current share price and the current book value of shares, the board of directors of the company has authorised management to purchase shares for cancellation at a cost not to exceed $200,000," LOM stated.