CONSTRUCTION company BAM swung into the red last year, posting a pre-tax loss of nearly €10m.

The loss compares to a profit of more than €22m in 2008 and was the result of a slump in turnover from €460.7m to €362.8m, according to accounts just filed.

"The current economic environment continues to have an adverse effect on the overall contracting and property markets, which we expect will generate challenges in the short-term," the company said in the accounts. BAM, which is building the Luas Citywest extension, said it expects no recovery until next year.

The losses for the year meant there was no dividend paid to its parent company, which had received €12m in 2008.

According to the accounts, the number of people BAM employed dropped by 219 to 795 at its financial year end. Directors' pay dropped to €2.2m from €2.4m.

The company said it was talks with lenders about refinancing some of its loans.