Bermuda-based LOM (Holdings) Ltd made a net loss of almost $290,000 in 2010, the broker-dealer announced on Friday.Driving the loss were higher than expected legal costs associated with its settlement of a dispute with US financial regulator the Securities and Exchange Commission, and writedown of stock LOM owns in a mining company.Total revenues climbed 10 percent to $8.84 million, aided by rising equity markets in the second half of 2010, while assets under administration also rose 10 percent to $876 million. Total costs rose eight percent to $8.45 million. The year’s net loss narrowed from the loss of $440,000 in 2009.In a letter to shareholders, LOM chief executive officer Scott Lines said the company would have made a profit of more than $660,000, but for two extraordinary items.“The first is that the legal expenses in relation to our dispute with the SEC were higher than what had been provisioned for and resulted in LOM absorbing an additional charge in the year of almost $640,000,” Mr Lines wrote in the letter.“The second is that our auditors required us to write down the value of LOM’s holding in a privately held mining company by over $300,000. This private company, in which we hold 241,500 shares, had a previous valuation of $1.80 per share. The company completed a fund raising at $2 per share last year and is currently in the middle of raising between $30 and $50 million at $2.50 per share with several major mining companies.“However the auditors “However the auditors wished us to write the investment down to cost ($0.51), and thus we have taken a further $311,000 loss in the year due to that adjustment.”Scott Lines and brother Brian Lines, former president of LOM, and five subsidiaries of LOM (Holdings) Ltd paid out a combined sum of $2.5 million as part of the settlement with the SEC of a fraud complaint that stretched back eight years.“As part of this, the LOM subsidiaries settled only to the charges of negligence, without admitting or denying the charges and with no finding of fact by the court,” Scott Lines continued in the letter.“Notably however, the charges of scienter fraud were dropped, paving the way for final settlement. Also notably, LOM (Holdings) Ltd was dismissed altogether.“LOM’s board and management felt it was the proper commercial decision to make as regards your company as the legal costs relating to the dispute were becoming increasingly onerous. The settlement should allow LOM to put those unfortunate events behind the company and allow the management and staff to concentrate on growing customers, assets, revenues and ultimately profits.”The group’s balance sheet showed no debt at year end and its cash levels were at 20 percent of total assets.At the end of 2010, LOM’s book value per share was $2.96. During the year its share price on the Bermuda Stock Exchange traded between a low of $3.10 and a high of $3.65.Mr Lines said the company intended to invest in growth.“Going forward the LOM group is aggressively hiring new brokers to increase the number of clients in the group and amount of assets under administration,” the CEO wrote.“Despite a difficult environment LOM is continuing to invest in technology to grow its business. As a result we will be launching our in-house, completely offshore on-line trading system, OPUS, to our customers in the second half of this year.“This system is unique we believe in the offshore world as it is not simply a portal through to an onshore system but a completely in-house system built in conjunction with our independent IT contractors that will allow our clients around the world to trade globally whenever and wherever markets are open.”LOM’s board decided to pay a dividend of one cent per share to shareholders of record May 16, payable on June 1.