Aurum, the jewellery group that owns watch brands including Goldsmiths and Mappin & Webb, has reported a spike in full-year losses to £2.2m.

The holding company, which also owns Watches of Switzerland, saw losses rise from £700,000 the previous year driven by a series of costs including interest on corporate loans.

But sales rose 8% to more than £400m during the year to May 31 following steady high street sales and the acquisition of etailer Watch Shop, which contributed to a rise in operating profits to £19.6m during the period.

Aurum, which was acquired by US debt fund Apollo for about £180m two years ago, said debts rose from £140m to £179m, but has pledged to continue funding the business.

The group opened a new Watches of Switzerland showroom on London’s Regent Street last year and now has 139 shops in the UK.