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LOM (Holdings) Limited Issues Interim Six-Month Report
Scott Lines, Managing Director of LOM (Holdings) Limited today released the Groups Unaudited accounts for the half year to 30 June 2003, which will shortly be mailed to shareholders.
"After a tumultuous start to the year, world equity markets managed small gains through the first half of 2003. The S&P 500 index gained 11%, the Nikkei 5.2%, the FTSE Eurotop 100 gained 1.5% and the UK FTSE 100 4.3%. This growth combined with low interest rates has raised the level of confidence in the stock markets and customer activity is slowly increasing.
In the first six months of 2003 the Group's net broking revenues after execution costs rose 3.4% (to represent 61% of net revenues), and greater demand for margin loans resulted in a 32% rise in net interest earnings. While broking revenues remain flat our efforts in diversifying revenue streams are beginning to bear fruit. Asset management fees rose 33% year on year, while other revenues rose 30%. Our leasing business continued its rapid growth with lease income revenues rising 265%. Despite these positive developments, the flat performance of our broking divisions resulted in overall net revenues for the group rising only 0.5%.
We are continuing to focus on cost containment, however further significant cost reductions will be difficult to achieve without reducing the organization's services. Overall operating costs for the group rose 1.5% year on year due mainly to increased commission payments.
LOM's first half net earnings were $165,007 versus $216,767 for the same period in 2002. Meaningful gains in our net profitability are dependant upon the group reversing the decline in our broking revenues and continuing to make significant gains in growing asset management, leasing and other revenues.
Our outlook for the remainder of the year is cautiously optimistic; though business conditions remain difficult our assets under administration are growing. LOM's balance sheet remains very healthy with net equity of $22.4 million. The Group carries no debt and holds cash and equivalents of $9.3 million or 39% of total assets. As of 30th June 2003 LOM's book value was $3.55 per share.
We would like to thank our customers for their support and our staff for all of the hard work and dedication they continue to exhibit."