LOM Financial Ltd swung to a $225,747 net loss in the first half of the year, as the company made less on broking fees but more on management and advisory fees.

The loss compared to a profit of $90,605 for the first half of 2014.

But in a letter to shareholders of the Bermuda Stock Exchange-listed company, chief executive officer Scott Lines said: “Business has been showing signs of greater activity and we are reasonably confident that we will still see a profit for the full year.”

Broking fees, which made up just over a third of revenues, fell 4.6 per cent to $1.12 million.

However, in the asset management division the company saw 19.2 per cent growth in revenue to $1.3 million, representing 40 per cent of the group’s total revenue. LOM attributed this performance to “the excellent performance of our award-winning funds”.

Net interest revenues declined as customers used less leverage over the period, and foreign exchange revenues also fell 25 per cent.

LOM had to write down the value of its investment in Butterfield Bank, because of a decline in its stock price to $1.65 as of the end of June, and also its Canadian investments due to the decline in the Canadian dollar.

Operating expenses rose 6.3 per cent, while employee expenses fell 3 per cent. LOM added that commission payments increased as two brokers came off of salary and onto commission, while the company hired additional staff in its Bristol office to increase its internet presence.

Professional fees also rose due to increased IT development expenses and continuing efforts to hire new financial advisers.

LOM’s assets under administration were $661 million as of June 30, 2015, compared to $615 million at the end of 2014.

The company ended June with net equity of $16.2 million and no debt, with cash and equivalents of $3.77 million, representing 23 per cent of net equity.

LOM’s board decided not to pay a dividend, but to continue buying back shares, which are trading at $2.25, well below their book value of $2.69.

The board has authorised the repurchase of up to 200,000 shares. Over the first half of 2015, the company purchased for cancellation 19,600 shares at an average price of $2.25.