Investment firm LOM (Holdings) Ltd made a net loss of $269,566 in the first six months of the year as brokerage revenues dipped sharply on clients’ reluctance to invest in financial markets against a backdrop of elevated global uncertainty.In a letter to shareholders, the company also said it had cut its payroll by seven staff as part of its efforts to reduce expenses. This included four redundancies and the loss of two further staff two through attrition in the Bermuda office. In the Bahamas, there was one further redundancy and staff working hours have been reduced.In its letter, the firm stated: “For LOM business continues to be very tough. Very high levels of uncertainty as to whether the world is on the brink of sliding back into a global recession with price deflation, or conversely, about to resume growth with inflation risks have created an environment where clients have a powerful incentive to ‘wait and see’.“This rational and understandable hesitation to engage in the market has led to a significant slowdown in broking activity in all markets and that has negatively impacted our revenues.”In the first six months of the year, broking fees fell 27 percent to $1.28 million. Management and advisory fee revenues rose 11 percent to $1.01 million, as the asset management division’s revenues and profits showed healthy growth.LOM did succeed in slashing expenses, with overall operating expenses falling 16 percent compared to the first six months of 2011 and employee expenses falling 2.1 percent.Assets under administration fell to $621 million as of June 30, 2012, compared to $681 million in assets at the end of 2011.LOM ended the first half of the year with net equity of $16.7 million and no debt. The $2.74 million in cash and equivalents on its books represent 16 percent of net equity. As of June 30, LOM’s book value was $2.72 per share.LOM also commented on the Island’s economic situation and competitiveness.“The Bermuda economic environment is very challenging,” LOM stated. “Wage costs, taxes and contributory cost associated with wages and health coverage are very high in Bermuda.“With most of our international business competing in a global environment against other offshore financial centres we need to offer compelling reasons as to why the Bermuda jurisdiction is more attractive, better run, and more business friendly than our offshore competitors. These natural competitive pressures become more acute when the overall volume of business is not growing or actually declining as is happening in the global financial services sector.”The LOM board decided not to pay a dividend, given current business conditions. The board has given approval for LOM to continue to buy back shares for cancellation to a total outlay not exceeding 200,000 shares. Over the first half of 2012, the company purchased for cancellation 200 shares at an average price of $2.50.