The State's largest taxi firm last year plunged into the red, recording pre-tax losses of €1.77 million.

National Radio Cabs plc has more than 700 taxis, and new accounts for the firm show it recorded the loss after writing down the value of its property by €1.66 million.

The figures show that the firm's operating profits fell from €222,507 to €33,684 in the 12 months to the end of February 29th, 2012.

This followed the firm's gross profit decreasing from €2.3 million to €2 million. Administrative expenses dipped marginally from €2.087 million to €2 million.

The filings show that the firm's profits were also hit by €143,406 in net bank loan interest payments.

The pre-tax loss last year of €1.7 million followed the firm recorded a pre-tax profit of €80,148 in 2011.

Shareholder funds declined last year from €2.8 million to €1.1 million. The firm's cash declined sharply from €893,543 to €363,795.

According to the directors' report, "the company faces risks and uncertainties such as competition and increasing costs. The directors are of the opinion that the company is well positioned to manage these risks."

The firm was established in 1957 with 12 taxis and has today expanded to more than 700 vehicles - with 10 per cent wheelchair accessible - including Ireland's first electric taxis. The firm provides a service to more than 800 corporate customers, handling 4,000 bookings through its system each day. The firm directly employed 41 people, with 23 in its call centre and 18 in administration.

The company declined to comment yesterday.