Asset management firm LOM posted a 17 percent rise in first half net earnings for 2007.

The increase to $1,275,200 or 20 cents per share compared favourably to $1,085,571 for the same period in 2006.

The Bermuda-based company will have even more reason to be pleased as asset management revenues rose 8.5 percent and fees realised from corporate finance work increased more than four times to total $240,068.

In addition revenues from proprietary trading increased six times to $465,222, while net interest earnings rose 18 percent as a result of higher interest rates.

But broking fees fell 17 percent to represent 52 percent of group revenues as the brokerage subsidiaries continued to face downward pricing pressure on commission rates and foreign exchange revenues slipped 30 percent, as did overall revenues for the group, down 2.7 percent.

On the plus side operating costs for the group, excluding the commission payments that are directly related to brokerage revenues, decreased 5.4 percent, with overall operating expenses falling 6.2 percent. However, employee expenses rose 19 percent, accounted for by the group hiring additional staff to prepare for future growth.

Other highlights of their half-year financial results included assets under administration increasing to $1.003 billion as of June 30 2007, a net equity of $21.3 million, 43 percent or $9.1m of which is held in cash and equivalents.

The group's annual return on equity was 12 percent, while, as of June 30 2007, their book value was $3.28 per share.

LOM, whose current share price on the BSX is $3.60, paid its regular dividend of $0.05 per share to shareholders and will continue to buy back shares for cancellation for a total outlay not exceeding $1m, purchasing for cancellation 49,100 shares over the first half of the year.

Chief executive officer Scott Lines, said that the continuing strong equity markets and buoyant natural resources sector were the main factors behind a strong first half result.

But he explained that the company had faced higher costs as they upgraded their services and systems, while LOM Securities (Bahamas Ltd) Ltd. will be moving to new offices in downtown Nassau in September in a bid to increase its customer base.