Thursday 23 October 2014

Number of firms going bust falls by a third amid growing confidence

Published 28/10/2013 | 01:00

Christine Cullen of Vision-net

THE number of companies declared insolvent fell by a third compared to a year ago, as businesses continue to stabilise after the bust.

New data from business information firm Vision-net shows that 93 firms went bust in October, a decline of 33pc on the same period a year ago.

Among the firms that went under, some 65 were liquidated, 21 entered receivership, and an examiner was appointed to seven. Significantly, liquidations were down 32pc in the last 12 months, while the number of companies going into receivership fell by half.

Some 1,069 new companies were incorporated between July and September, Vision-net said. That is an increase of 17pc on the same period last year

Overall, 2,777 businesses were started during the month – a rate of 126 per day. Vision-net managing director Christine Cullen said the results confirmed the trend of an economy that was at least bottoming out. "Our data has shown consistent positive signs of business recovery over recent months, and this trend has continued in today's data.

"The number of companies failing is reducing significantly and on the other side of the equation, the number of new Irish companies now being created is also increasing. It points to a growing confidence in the Irish business community," she added.

REAL ESTATE

Construction remained the sector with the most companies failing, although that is closely followed by the likes of retail, professional services, manufacturing and real estate.

Vision-net says that in September, there were 450 registered commercial and consumer judgments worth €40.6m awarded in the courts.

Of these, 295 were judgments awarded against consumers worth as much as €30.5m – well up on previous months. The Revenue Commissioners, credit unions, banks, real estate and local authorities made up most of the creditors.

Ms Cullen said the higher level of judgments against consumers needed to be monitored.

"The increase in the value of consumer judgments this month is a one to watch in the coming months, not least because of the potential it has to scupper growth in areas such as retail or hospitality," she claimed.

Irish Independent

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