Upmarket jewellers Appleby lost more than €1.5m in the year ended 30 April 2009 after recording a leasehold property impairment of more than €1.4m.

Shareholders' funds stood at just under €7m, down from €8.625m the previous year.

The company also recognised a deficit of €100,000 following the revaluation of a freehold property at Johnston's Court, off Grafton Street in Dublin, which is the main shopping thoroughfare for jewellers in the capital.

"The directors are of the opinion, based on advice received from their professional valuers, that these occupiers would have a special interest in the long leasehold/freehold of the company, were it available on the open market, and it is possible that they would pay a significantly higher figure than included in the valuation reports," a note to the accounts states.

The freehold property had a net book value of €3.4m at the end of the financial year, while the leasehold property was valued at less than €700,000, down from nearly €2.2m the previous year.

The jeweller had raw material worth more than €410,000 at the end of April 2009 and had finished goods worth nearly €7.25m.

The company had made a profit in excess of €150,000 in its previous financial year.