Business Irish

Saturday 20 January 2018

Nine companies declared insolvent daily in October

Services industry most at risk as domestic sector struggles

Charlie Weston, Personal Finance Editor

NINE companies were declared insolvent every day last month, shocking new figures show.

A total of 272 companies were declared insolvent in October, with service companies now ranking alongside construction firms as the most likely to fail.

The new figures mean that business failures remain stubbornly high, said, which compiled them. managing director Christine Cullen said a stress test exercise also shows that there was still a large number of companies at risk of failing.

Of the 14,700 companies surveyed in the sample, 41pc were seen as "high risk".

One in five was classified as medium risk and 39pc were low risk.

Ms Cullen said the level of business failures continues to be stubbornly high.

She said: "There are few real signs yet of recovery in the domestic sector, with professional service firms starting to creep in the wrong direction.

"What is apparent is that while the export sector is growing, weak consumer confidence continues to hamper growth in home-grown companies," she added.

The number of creditors' meetings last month at 97 companies was similar to the number recorded in October last year, when 99 such meetings were held.

Meanwhile, the eurozone crisis is hurting the chances of getting investment into the country, a survey of US business leaders by law firm Matheson Ormsby Prentice (MOP) shows.

Almost half of US business leaders feel the euro debt crisis would deter them from setting up business in Ireland, the latest instalment of the MOP Foreign Direct Investment index shows.

However, this country's status as a key destination for foreign direct investment remains strong, with corporate tax rates mentioned as one of the main attractions.

And the handling of the country's financial crisis by the Government was endorsed by the US business leaders.

Irish Independent

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