Financial services investment firm Somers Ltd broke even in the third quarter of its fiscal year — down from an $8.6 million profit in the same period of last year.

But the firm said that a decline in the UK pound against the dollar amid turmoil in Britain over its decision to quit the EU had hit profits.

Warren McLeland, chairman of Somers, said: “Excluding the impact of currencies, Somers recorded an operating profit both on a quarterly and year-to-date basis following modest gains on the investment portfolio.

“Sterling’s decline against the dollar has been the main driver of the year to date loss of $1.7 million.

“The Brexit foreign exchange losses resulted in a decline in the Somers net asset value to $16.71 from $17.03 at March 31, 2016.”

But he added: “Subsequent to the quarter end, we have seen a rebound in our UK assets resulting in our July NAV increasing to $17.76.”

He was speaking as the company released its figures for the nine months to the end of June, as well as the three-month period to the end of that month.

Somers, which owns the Bermuda Commercial Bank and has a majority share of property firm West Hamilton Ltd, also has large investments in companies based in the UK and Ireland.

These include a majority share of UK wealth manager Waverton Investment Management, a large stake in Ascot Lloyd Holdings, a UK independent financial adviser, a 23 per cent share of Merrion Capital Holdings, an Irish financial services group, and a 99 per cent stake in Stockdale Securities, a corporate and institutional stockbroking firm.

Somers said BCB’s revenue slumped to $17.6 million for the nine months ended June 30, compared to $24.2 million during the same period a year ago.

Mr McLeland said: “As of today, the UK economy appears to have weathered the initial shock of the Brexit referendum vote and, stimulated by a rate cut and additional measures by the Bank of England, including government bond purchases, the FTSE 100 is currently trading higher than before the referendum.

“These measures have had a positive impact on the value of our UK investments valuation increases post the quarter and have offset the negative currency movements.”

Mr McLeland said Somers had in May paid $1.32 million to buy a minority interest MJ Hudson, a UK specialty law firm and asset manager and in June invested a further $1.32 million in Ascot Lloyd through a convertible loan note.

He added: “We continue to carry a low level of debt on our balance sheet and we expect to maintain this position at least in the short term. All new borrowing for investment purposes are currency matched with the related investment to minimise currency exposures.

“As capital grows and our profitable investments return cash, we will look to use these funds to diversify our portfolio.”