By Daniel Hunter

A legal battle with popstar Katy Perry has resulted in the maker of GHD hair products to report a loss in its first financial update since a £300m takeover.

Jamella, which is part of the GHD Hair Group and manufacturers the company's flagship hair straighteners, reported a loss of £2.9m for the 18 months to June 2014, its first trading update since the group was bought by private equity firm Lion Capital in March 2013.

The accounts show a £5.1m exceptional item related to "termination and related litigation costs incurred during the period on a material contract and internal restructuring costs" - which is believed to be a settlement payment to Katy Perry.

GHD's new owners decided not to renew its sponsorship deal with the pop megastar, despite Ms Perry claimed a verbal agreement was in place for a $2m renewal.

The dispute was settled out of court, but the figures involved were not disclosed. The £5.1m exceptional item is the biggest indication yet of the settlement figure with Katy Perry.

During the 18 month period, Jamella posted sales of £120.1m, a 7% fall after average monthly sales fell from £7.15m to £6.67m.

Michael Doyle, who became a director of Jemella in January 2014, said: "Given that the period of accounts relates to an 18 month period, it is difficult to compare performance to the prior year period."