LOM Financial Ltd’s profits almost doubled in the first half of this year on the back of soaring revenue.

Net income for the first six months totalled $809,021, or 14 cents per share, up from $432,935, or 7 cents per share in the first half of 2017.

Revenue rocketed 44 per cent while costs for the expanding group, which now has offices in the Bahamas and Cayman as well as Bermuda, rose 39.6 per cent.

In a letter to shareholders, Scott Lines, the investment firm’s chief executive officer, wrote: “Overall, LOM has continued to see inflows of new assets into its brokerage divisions and our asset management subsidiary.

“Asset management revenue has continued its strong growth year-on-year, with all of LOM’s asset management funds performing very well, outperforming both their benchmarks and their peer groups. Additionally, we have seen strong growth in our brokerage revenues.”

The biggest boost to revenue came from broking fee income, which rose 84 per cent to $2.69 million, representing 40 per cent of total revenues.

Management and advisory fee revenues rose 19 per cent to $2.33 million, representing 35 per cent of total revenue.

Net interest income, the next largest contributor to revenues, rose 41 per cent to $683,900, representing 10 per cent of revenues.

In March, LOM opened a new branch office in Grand Cayman, with a marketing effort and a launch party, one of the reasons that costs spiked during the period.

“The combination of expenses related to our opening in Cayman and LOM’s 25-year anniversary has caused a one-off increase of approximately $250,000 in our costs during the first half of the year,” Mr Lines wrote.

“As well as our Cayman opening, we hosted a large party for all our present and past employees and clients in Bermuda and made a large donation to various local charities.

“These costs will not be repeated in the second half of the year. After ramping up staffing levels and marketing commitments, the group will focus on cost containment while the additional resources help build our revenues.”

LOM believes the cost of new personnel — employment costs and benefits rose 27 per cent — will be covered as the Cayman operation builds new assets and revenue streams.

Assets under administration were $932 million as of June 30, up about 6.5 per cent from $875 million over the six-month period.

Mr Lines said the company had taken out a mortgage to buy the building which houses LOM’s operation in Nassau, in order to maintain comfortable liquidity, while acquiring the building.

LOM reported net equity of $18.2 million, 25 per cent of which is in the form of $4.6 million of cash and equivalents.

The Bermuda Stock Exchange-listed company’s book value was $3.09 per share at the end of June. Yesterday, its shares closed at $2.50.

LOM’s board has given approval for the company to continue to buy back shares for cancellation for a total not to exceed 200,000 shares.

Over the first half of 2018, the company bought back 57,600 shares at an average price of $2.53. As of June 30, LOM had 5,887,278 shares outstanding.