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LOM doubles profit on investment gains

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LOM: profit nearly doubled in 2021

LOM Financial Limited’s net profit for the year doubled to $9,510,119 as it enjoyed favourable returns on securities that the company owned.

In a letter to shareholders, chairman and CEO Scott Lines said that the full-year 2021 profits were an increase over the $4,795,662 profits declared in 2020 as a result of an extraordinary $7.1 million realised gain on securities.

Mr Lines added: “Pleasingly, our underlying profits before the extraordinary gains in 2020 and 2021 rose 19 per cent year on year, from just shy of $2 million to $2.36 million.

“This is the important metric, as it is extremely unlikely that the extraordinary profits recorded in 2021 will reoccur this year.”

Revenues had the following year-on-year changes in 2021:

• Management and advisory fee revenues rose 29 per cent to $7.164 million (29 per cent of revenues).

• Broking fees rose 17 per cent to $7.506 million (31 per cent of revenues).

• Net interest earnings fell 33 per cent to $553,135 (2.2 per cent of revenues).

• Foreign exchange revenues rose 30 per cent to $752,874 (3 per cent of revenues).

• Gains on securities held in inventory showed a profit of $7.141 million.

• Total revenues rose 39 per cent to $24,493,484.

Costs for the group had the following year-on-year changes:

• Employee compensation costs rose 8 per cent to $4.65 million.

• Commission and referral fees rose 27 per cent to $5.7 million.

• Total operating costs rose 17 per cent to $14.98 million.

On other financial measures, LOM reported:

• Assets under administration were $1.62 billion as of December 31, 2021 compared with $1.27 billion at the end of 2020.

• Fully diluted net income per common share was $1.84.

• Net equity of $33.6 million.

• A net return on equity of 39 per cent in 2021.

• Held cash and equivalents at year-end of $18.3 million, representing 55 per cent of shareholder equity.

• Book value as at December 31, 2021 was $6.50 per share.

Scott Lines, chairman and CEO of LOM (File photograph)

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Published March 23, 2022 at 7:32 am (Updated March 23, 2022 at 7:32 am)

LOM doubles profit on investment gains

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