LOM, the international financial services company, has reported full-year 2022 profits of $1,883,951, or $0.37 per share.

This decrease from the more than $9.5 million profit declared in 2021 is because of the extraordinary $7.1 million gain on securities in the 2021 financial year not being repeated, the company said in a statement.

In a filing with the Bermuda Stock Exchange, a company statement from chairman and chief executive Scott Lines also noted a significant drop in total revenues and assets under administration.

The statement said: “Outside of the extraordinary gain and losses in both years, our underlying operating profits between 2021 and 2022 rose 7 per cent year on year from $2,326,110 to $2,482,615. Given the significant weakness in the global stock and bond markets during 2022, we are pleased with the result.”

LOM’s 2022 financial performance included year-on-year changes in revenues:

• Management and advisory fee revenues were flat at $7.114 million (39 per cent of revenues)

• Broking fees rose 10 per cent to $8.2 million (45 per cent of revenues)

• Net interest earnings rose 202 per cent to $1.673 million (9 per cent of revenues)

• Foreign exchange revenues fell 30 per cent to $523,371

• Gain on securities held in inventory showed a loss of $598,664

• Total revenues fell 25 per cent to $18,281,932

Costs for the group had the following year-on-year changes:

• Employee compensation costs rose 3.6 per cent to $4.814 million

• Commission and referral fees rose 2 per cent to $5.828 million

• Total operating costs rose 9 per cent to $16.352 million

On other financial measures:

• LOM’s assets under administration were $1.25 billion as of December 31, 2022 compared with $1.62 billion at the end of 2021

• LOM’s fully diluted net income per common share was $0.37

• LOM is in a strong financial position with net equity of $34.652 million

•LOM had a net return on equity of 5.4 per cent in 2022.

•LOM held cash and equivalents at year-end of $15.787 million, representing 46 per cent of shareholder equity.

•LOM's book value as at December 31, 2022 was $6.86 per share