turnover at building firm Gama Ireland fell dramatically last year as the property market began to implode.

According to the company's latest accounts, group turnover fell by more than €26m last year to €12.7m; with the cost of sales totalling €12.3m, an operating loss of €6.75m was recorded.

However, the figures compare favourable to 2007 when Gama's turnover was over €39m but operating costs came in at €87m. Operating losses were in excess of €56m but were offset by the sale of a financial asset which brought in almost €54m. As a result, losses after tax remain largely unchanged at €10.1m last year compared to €9.8m in 2007.

Company debtors decreased by almost €50m last year to €12.7m with creditors also falling by more than €43m to €77m.

Staff costs fell considerably last year as the company divested itself of 125 employees from its 183-strong workforce. Salary costs dropped to €3.3m in 2008 from €12.8m the previous year.

Gama has three main construction projects – the Ennis bypass, the Monaghan bypass and Balgaddy C, a social housing development at Lucan, Co Dublin.

In their report, the directors say that Gama's Turkish parent company gave a commitment to support the Irish group over the course of 2009 despite its negative net assets.