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Number of firms made insolvent falls sharply


Christine Cullen

Christine Cullen

Christine Cullen

The number of companies made insolvent dropped by a quarter last month year-on-year, newly released figures show.

Business analyst Vision-net said 96 companies were made insolvent in February, compared to 120 last year.

The wholesale and retail sector was most affected, but it saw the number of insolvencies drop by a third on 2014.

The figures show that on average 143 start-ups were formed every day last month.

Vision-net managing director Christine Cullen, pictured, said it is significant that the first two months of this year have both seen over 1,500 new companies established. "This has not happened since 2007 and suggests greater consistency in the number of companies starting up," said Ms Cullen.

"While the professional services industry remains the most popular sector for new start-ups, last month was also a positive one for the agriculture and construction sectors - key drivers of economic recovery.

"The 25pc drop in insolvencies is an encouraging sign and suggests that the overall success rate of companies is improving, particularly in the manufacturing, construction and real estate sectors," Ms Cullen aded.

Irish Independent