Irish development firm McInerney has posted pre-tax losses for last year in excess of €200m.

According to industry experts, the firm was badly hit by the dwindling demand in the UK and Irish house building sector.

Falling land sales accounted for a €82.5m loss, with €10m lost in restructuring costs.

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Despite a slowing down of sales recorded early in the year, the firm said falling house values and reduced interest rates had helped to stimulate the market, in the medium term.

McInerney has negotiated new lending agreements with its bankers in Ireland and the UK to reflect the tougher market conditions.

However, a spokesman said talks with banks are continuing, warning that "constant revisions" of these arrangements will be needed if it is to continue in business.

(PR/JM)