LUXURY jeweller Theo Fennell today announced plans to broaden its customer base with a more affordable range of designs under a turnaround plan kick-started by the return of its eponymous founder.

Theo Fennell - traditionally a jeweller to the stars with prices ranging up to £250,000 or more per piece - is to launch a silver line starting at less than £100 in October, while it is also set to expand its online sales store.

The plans are part of a revival strategy that saw founder Theo Fennell return as creative director last June, bringing on board former managing director Barbara Snoad at the helm to get the business back on track.

Annual results revealed the revamp helped comparable sales leap by 23% in the second half of the year after plunging 20% in the first.

The firm said the trend had continued into the new financial year, with like-for-like sales growth remaining at 23% in the first 10 weeks of the year.

The company remained in the red with pre-tax losses of just under £350,000 in the year to March 31, but this was significantly lower than the £3.3 million seen the previous year.

Theo Fennell said it was "confident" in steps taken to return to profit, with analysts at Seymour Pierce pencilling in pre-tax profits of £500,000 this year.

Rupert Hambro, chairman of Theo Fennell, said: "The new board’s main focus during the year was to restructure and re-establish the Theo Fennell business.

"As reflected in strong current trading this has largely been achieved and I believe the business has now turned the corner and is positioned for profitability."

It launched its first new collection in two years last September, called PHI, while it unveiled the Bee range earlier this month.

Theo Fennell has a raft of celebrity customers on its books, including pop star Lady Gaga, who wore one of the firm’s pieces last week at Elton John’s white tie and tiara ball.

But the new commercial range is being positioned to appeal to a wider range of customers, available from £90 to £2,000, although it will retain the same design quality, according to the group.

"We expect this to significantly expand our customer profile and provide product to support our wholesale and internet sales growth," said Mr Hambro.

Its online relaunch - due in October - will include a new and expanded online store and could see the group also tap into social media, such as Twitter and blogs.

Seymour Pierce retail expert Freddie George said the lower priced range could be "transformational for the business".

He added the group had strong future potential, "based on the longer term outlook for luxury goods, the strength of the brand and the potential for significant upside to earnings over the next three years as the company follows the same path successfully tracked by international peers Bulgari and Tiffany".

Theo Fennell is also boosting its wholesale trade, with sales up 115% in the past financial year, and aims to expand this further internationally.

Founder Mr Fennell was brought back as creative director after 18 months away from the board, boosting his personal stake in the group as part of the move.

He pledged to return the group - founded in 1982 - to its creative design roots and the firm recently bought a 20% stake in his Original Design Partnership outfit.