LOM (Holdings) Ltd swung to a profit of $180,284 in 2013, as revenue rose more than eight percent.

CEO Scott Lines said in a letter to shareholders, published by the Bermuda Stock Exchange this morning, that the profit — which compared to a loss of $774,748 in 2012 — was driven by stronger market conditions in the second half of the year and a modest increase in brokerage revenue.

However assets under administration slid to $587 million as of the end of last year, down $87 million from the $674 million in assets at the end of 2012.

Broking fees of $2.35 million made up nearly a third of revenue and rose 2.9 percent from 2012, while management and advisory fee revenues rose 10.6 percent to $2.5 million. Fees from corporate finance work rose 14 percent to $118,109.

LOM also managed to trim operating expenses, which fell 5.3 percent.

Ex-commission payments, operating costs fell ten percent. Employee expenses fell 6.2 percent.

LOM finished last year with net equity of $16.2 million and no debt. LOM increased its cash and cash equivalents to $3.52 million, representing 22 percent of shareholder equity.

LOM trades at $2.30 on the Bermuda Stock Exchange, with a market capitalisation is $14.03 million. As of the end of last year, 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.

Mr Lines praised the company’s employees for their efforts. “I would like to express appreciation and thanks to all the staff at LOM, who I believe are the most professional, dedicated, loyal and hard-working group in the financial services industry in Bermuda and the Bahamas.”

In his market commentary, Mr Lines said that Western stock markets had been helped by accommodative central bank policy and a gradual recovery in economic activity.

“Going forward, the markets are going to face headwinds with the removal of this quantitative stimulus which will start with the US economy, as it is leading global growth. QE [quantitative easing] in the US will end this year and arguably should end now.

“We expect that by late summer, market debate will become very much focused upon the timing for rate rises. However we expect that the US Federal Reserve will very much lag economic recovery as far as rate rises are concerned, and looking further out in time this could become a real issue for their credibility with the market.”

In 2013, Mr Lines said the S&P 500 advanced 31.3 percent, FTSE 100 advanced 13.6 percent, the EURO STOX 50 advanced 18.4 percent and Japan’s Nikkei 225, stimulated by ‘Abenomics’ “put in a roaring 56 percent return”.

China-centric markets were much weaker. The Hang Seng index advanced only 3.3 percent, while the Shanghai Composite fell 6.5 percent over the year.

“Our view looking forward for the global equity markets is somewhat mixed,” Mr Lines added. “We feel that the American and European economies will continue their recovery with the US in the lead, while Asia will be very mixed in terms of economic performance, mainly due to our growing fears that China will experience an economic hard landing during their attempt to reform the structure of their economy.

“We are generally bullish on equity markets, as we continue to expect profit growth and low interest rates in the West. We are optimistic that we have seen the last of the extreme weakness in the junior resource markets, and those markets should improve throughout the year.”