Scott Lines, president and CEO of LOM. *File photos
Scott Lines, president and CEO of LOM. *File photos

LOM (Holdings) Limited had a profit of $180,284 for 2013. This compared to a loss of $774,748 for 2012.

Scott Lines, president and CEO of LOM, said in a letter to shareholders: “We witnessed revenues from asset management outgrow brokerage fees to become the largest contributor to revenues. We have actually seen a small year-on-year growth in our brokerage revenues, which is the first increase since 2004. We continue to focus on our cost base, and in addition to tight cost controls, we are seeking ways to restructure in order to deliverbetter services in a more cost- effective manner. To that end, we are moving our London based subsidiary LOM (UK) Limited to the government enterprise zone in Bristol, and shifting some of our information technology staff and recruiting some support staff there.”

Revenues had the following year-on-year changes:

• Management and advisory fee revenues rose 10.6% to $2.5 million (34% of revenues).

• Broking fees rose 2.9% to $2.35 million (32% of revenues).

• Fees from corporate finance work rose 14% to $118,109 (1.6% of revenues).

• Foreign Exchange revenues fell 28% to $422,242 (5.7% of revenues).

• Net interest income fell 12% to $481,784 (6.6% of revenues). •         Gain on securities held in inventory was $185,855 (2.5% of revenues).

• Total revenues rose 8.3% to $7,292,520. Costs for the group had the following year-on-year changes:

• Operating costs, ex-commission payments, were reduced 10%.

• Employee expenses fell 6.2%.

• Total operating expenses fell 5.3%.

On other financial measures:

• LOM’s assets under administration were $587 million as of 31st Dec 2013 as compared to $674 million in assets at the end of 2012.

• LOM remains in a strong financial position, with net equity of $16.2 million and no debt.

• LOM increased its cash and cash equivalents to $3.52 million, representing 22% of shareholder equity.

Mr Lines sadi: “As business conditions remain challenging, the Board has decided not to pay a dividend. Our current shareprice on the Bermuda Stock Exchange is $2.30, and our current market capitalization is $14.03 million. As of 31st December 2013, LOM's book value was $2.65 per share.

“LOM continues to buy back shares for cancellation, for a total not to exceed 150,000 shares. Over the whole of 2013, the Company purchased for cancellation 41,204 shares at an average price of$2.33.”