LOM posts $90,000 half-year profit
LOM (Holdings) Ltd announced a profit of more than $90,000 for the first half of 2014.
In a letter to shareholders, the company stated: “LOM continues to see a very gradual upturn in business activity.
“Due to this increased activity and as a result of the cost containments we made over the last year, LOM made a $90,605 profit in the first half of 2014 as compared to a loss of $315,834 for the same period in 2013.
Revenues overall rose 11 percent and had the following year-on-year changes:
• Management and advisory fee revenues rose five percent to $1.09 million (32 percent of revenues).
• Broking fees rose 15 percent to $1.17 million (34 percent of revenues).
• Fees from corporate finance work fell 47 percent to $39,899 (1.1 percent of revenues).
• Foreign Exchange revenues fell 26 percent to $151,494 (4.4 percent of revenues).
• Net interest earnings rose 15 percent to $348,501 (10.2 percent of revenues).
• Investment Services income rose 11 percent to $480,169 (14 percent of revenues).
• Gain on securities held in inventory was $89,627
Costs for the group had the following year-on-year changes:
• Operating costs, ex commission payments, were reduced one percent
• Overall operating expenses fell 2.3 percent.
• Employee expenses rose six percent.
On other financial measures:
• LOM's assets under administration were $589 million as of 30th June 2014 as compared to $587 million in assets at the end of 2013.
• LOM remains in a strong financial position with net equity of $16.4 million and no debt.
• LOM holds cash and equivalents of $3.93 million, representing 24 percent of net equity.
LOM's board decided not to pay a dividend given current business conditions, however given the discount the share price trades to book value, the board decided to increase the size of the share buy-back.
“Our current share price on the Bermuda Stock Exchange is $2.10 and our current market capitalisation is $12.71 million,” LOM stated. “As of June 30, 2012, LOM's book value was $2.69 per share.
The board has given approval for LOM to continue to buy back shares for cancellation for a total not to exceed 200,000 shares. Over the first half of 2014, the company purchased for cancellation 2,500 shares at an average price of $2.25.