LOM normalised profit grows 18.5%
LOM Financial Limited’s net profit for the first half of 2022 fell 90 per cent year-on-year to $823,493.
That compares with a profit of $8,052,398 for the same period in 2021.
In a letter to shareholders, chairman and CEO Scott Lines said: “In 2021, the group had an extraordinary gain on an investment which was not repeated this year and as such our headline earnings have seen a significant year-on-year decline.
“What is encouraging is the underlying operating earnings for the organisation have continued to grow.”
He added: “If we exclude the extraordinary gains and losses, our normalised operating profit rose 18.5 per cent to $1,558,249.”
Gross revenues, excluding net trading gains, rose 12.1 per cent to $9.54 million and had the following year-on-year changes:
• Management and advisory fee revenues rose 6.4 per cent to $3.58 million (39 per cent of revenues).
• Broking fees rose 21.5 per cent to $4.6 million (50 per cent of revenues).
•Revenues from corporate finance activity were $32,750.
• Net interest income rose 139 per cent to $651,445 (7.1 per cent of revenues).
• Foreign exchange income fell 42.2 per cent to $277,022 (three per cent of revenues).
• Losses on securities held in inventory was $427,589.
Costs for the group rose 19.4 per cent in large part due to higher execution and commission costs and had the following year-on-year changes:
• Employee compensation excluding commission expenses rose two per cent to $2.25 million.
• Total operating expenses, ex commission, jitney and foreign exchange movement, were up 0.6 per cent year-on-year to $4.19 million.
•Commission and referral fees were $3 million, up 15.8 per cent.
On other financial measures, LOM reported:
• Assets under administration declined in line with market movements to $1.3 billion as of June 30 as compared with $1.62 billion at December 31, 2021.
• Fully diluted net income per common share was $0.16.
• Net equity of $33.9 million.
• Held cash and equivalents of $18 million, representing 52 per cent of net equity.
• Book value as at June 30 was $6.63 per share.
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