Ladies fashion group Flairline fell back into the red last year as turnover fell sharply.

The group also recorded a significant downward revision in the valuation of its property assets.

The group, which runs the Pamela Scott, Richard Alan and Ashley Reeves stores in Ireland, reported an operating profit before exceptional items of €464,862, down 46 per cent on the previous year.

The group, owned by founder Seán Barron and his family, also recorded an exceptional loss of €1.62 million on a loan to subsidiary Richard Alan which it says is now unlikely to be repaid.

Turnover in the year to the end of August 2009 was almost 25 per cent weaker at €8.79 million compared to €11.6 million in 2008.

At the pre-tax level, the company reported a loss of €1.32 million compared to a profit the previous year of €660,000. The figures mean the company has recorded a pre-tax profit only once in the past three years, although it has been consistently profitable at the operating level. The group profit and loss account shows a surplus of almost €3.3 million.

The company also reported an unrealised loss on the revaluation of its investment properties last year. In accounts just filed at the Companies Office, it suggests its three properties are, between them, worth €4.6 million less than a year earlier. That follows a revaluation downwards of €2.09 million in 2008.

Since the year end, the directors state they believe the value of their main investment property – 18/19 South William Street in Dublin – has fallen a further €500,000 to €8 million.

Rental income has almost halved to €35,016.

Staff costs at Flairline fell to €1.24 million last year from €1.42 million in 2008, as staff numbers fell by three to 34. Directors salaries and fees both fell.