LOM (Holdings) Limited – 2010 Half Year Financial Results

Hamilton, Bermuda – 03 August, 2010 -  In a filing to the Bermuda Stock Exchange (BSX), dated 27 July, 2010, LOM (Holdings) Limited (“LOM”; Ticker: LOM.BH) released the consolidated financial statements for the six months ended 30 June, 2010.

In a letter to shareholders, Scott Lines, CEO, stated: “Due to the un-precedented global fiscal stimulus in 2009 and a consequent economic recovery, global equity markets began 2010 under a much better tone than last year.  The first four months of the year witnessed gradually rising share prices and business and investor confidence.  As investor confidence recovered the group saw a general increase in transaction volume.

Unfortunately this May witnessed the eruption of the Greek fiscal crisis and the attendant destabilization of the other fiscally challenged European economies.  Serious questions were raised about the long term viability of the Euro and resulted in a surge of volatility throughout global markets.  The European problems, when combined with a disappointing moderation of US economic growth and the managed slowdown of the Chinese economy, have raised significant fears of a double dip recession in the West. This caused a sharp general stock market selloff with the inevitable reduction of our brokerage activity.

To date most of the world’s global equity markets are showing negative returns for the year, with the worst showings being in the European markets.  Our outlook for equity markets this year is that they will continue to be challenged by earnings sustainability concerns due to the moderation of growth in the West; however we believe that there will not be a global double dip recession mainly due to a continuing strong performance from Asia and stabilization in the West will set the stage for stronger growth in 201..  As the global stock markets are discounting mechanisms, we should see stronger equity markets by the end of this year.

LOM saw a stabilization of revenues over the first half of 2010 (up 13% year-on-year).  On an operating basis the group had a small loss yet we also had a markdown on long term Bermuda securities owned which brought our first half loss to $357,286 or 6 cents per share.

Our costs rose slightly due to higher commission payments however ex these commission payments our costs declined 2% year on year. Overall we expect that costs will rise in the second half of the year as we continue to invest in new brokers and systems for the company. This increase in costs will to some extent be offset by a reduction in expenses due to the closure of our Cayman subsidiary.

LOM’s first half net loss for 2010 was $357,286 versus a loss of $725,632 for the same period in 2009.

Revenues had the following year-on-year changes:

• Broking fees rose 3.5% to $1.88 million (48% of revenues).
• Management and advisory fee revenues rose 5.6% to $724,313 (18.5% of revenues).
• Fees from corporate finance work rose by a factor of 5 to $114,107 (3% of revenues).
• Foreign Exchange revenues rose 250% to $451,575 (11.6% of revenues).
• Net interest earnings rose 19% to $325,061 (8.3% of revenues).
• Investment Services income rose 21.5% to $546,598 (14% of revenues).
• Loss of securities held in inventory rose 7 times to $179,948 (negative 4.6% revenues).

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

• Operating costs, ex the commission payments, were reduced 2%.
• Overall operating expenses rose 2%.
• Employee expenses fell 10.6% as head count was reduced.

On other financial measures:

• LOM’s assets under administration were $785 million as of June 30, 2010 as compared to $796 million in assets at the end of 2009.
• LOM remains in a strong financial position with net equity of $18.6 million and no debt.
• LOM holds cash and equivalents of $3.2 million, representing 17% of net equity.
• As of June 30, 2009 LOM’s book value was $2.99 per share.

LOM will pay a dividend of $0.01 per share to shareholders of record August 9^th on August 15^th.

Our current share price on the Bermuda Stock Exchange is $3.10 and our current market capitalization is $19.3 million.

LOM will continue to buy back shares for cancellation to a total outlay not exceeding $200,000.  Over the first half of the year, the Company purchased for cancellation 20,000 shares.”

About LOM (Holdings) Limited

LOM is a publicly-held, international financial services company, providing a complete range of investment services and products through its regulated subsidiaries in Bermuda, Bahamas and Grand Cayman.  In business for nearly 15 years, LOM today has over $1 billion in client assets under administration and provides brokerage, asset management, and corporate finance services to its primarily high net-worth individual and institutional customers in over 75 countries around the world.  LOM is publicly listed on the Bermuda Stock Exchange (symbol LOM BH).  The consolidated group is debt-free and has shareholder’s equity of over $21 million.

Find out more about LOM at www.lom.com.