Theo Fennell, jeweller to celebrities such as Elton John and Naomi Campbell, is preparing to launch a range of lower-priced silver jewellery to make the brand affordable for the average consumer.

Chief executive Barbara Snoad told Reuters the new range, to be launched in October, would be priced between £70 and £200 and drive the next stage of the company's turnaround plan.

The comments came as the firm, whose jewellery is typically priced at £1,000-plus, made a loss before tax and one-off items of £250,000 in the year to 31 March, a big improvement on the £2m loss reported the year before.

Freddie George, an analyst at Seymour Pierce, welcomed the new lower-priced range, saying it could be "transformational for the business in the medium term". He is forecasting a pre-tax profit of £500,000 this year.

Having parted company with the business in February 2008, Theo Fennell's eponymous founder returned as creative director a year ago to haul it back into the black.

After the first new collection for two years was launched last September, like-for-like sales leapt 23% in the second half.

Sales have continued at that pace in the first 10 weeks of the new financial year, helped by strong demand for pendants adorned with devils and wings, as well as top-end rings with secret compartments.

Celebrity endorsements also helped, such as Lady Gaga wearing Theo Fennell jewellery last week at Elton John's white tie and tiara ball.

Snoad said the company would launch an improved website in October and push on with its expansion abroad, with openings planned in Ukraine in October, and Qatar and China in November.