Fewer insolvencies in October as rate of start-ups increases

But average size of judgments against consumers for bad debt rises, says Vision-net

Siac was among the high-profile insolvencies during October

Siac was among the high-profile insolvencies during October

Mon, Oct 28, 2013, 01:01


The rate of company insolvencies has slowed down, while the number of new business start-ups is increasing, figures from business and credit risk analysts Vision-net show.

The number of company failures is a third lower this month than it was in October of last year, with liquidations down 32 per cent to 65 and receiverships halving to 21. A further seven companies sought court protection from their creditors under the examinership process, taking the total number of insolvencies for the month to date to 93.

However, the rate at which insolvencies are being declared has eased in recent months, having risen as high as 215 in April 2011. The number of insolvencies in October 2012 was 142.

High-profile insolvencies to occur during October include the appointment of an interim examiner to Siac Construction Ltd, while an examiner was appointed to women’s shoe shop chain Carl Scarpa.

Professional services, construction, wholesale and retail, manufacturing and real estate remain the most volatile industries, accounting for almost three-quarters of the company failures recorded so far this month.


‘Growing confidence’
But Christine Cullen, managing director of Vision-net, said the more modest rate of failure for October pointed to the existence of “growing confidence” within the Irish business community.

“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,” Ms Cullen said.

Some 1,069 companies were incorporated in October, up 17 per cent on the same period last year. When newly registered business names are included, there were 2,777 start-ups. This total figure was still up on October 2012, albeit only by 3 per cent.

There was one shadow in the shape of higher average debt judgments against consumers who did not repay debts.

In the month of September, the average consumer debt judgment rose to €103,000, up from €63,000 in the same month in 2012. The number of such judgments remained stable at 295, with their total value arriving at €30.5 million.