- by VisionNet on 27/02/2013
The number of businesses collapsing this month is down by 32% compared to the same month last year, according to the latest figures from Vision-net, Ireland's leading business and credit risk analyst.
These results continue the positive trend from January 2013, where a 21% drop in the number of businesses collapsing from the previous year was recorded.
Vision-net's figures, covering the period between February 1 and 25, show that 140 businesses collapsed - a 32% decrease on the same period in 2012. Of those, 99 were liquidated, 39 entered receivership and an examiner was appointed to two companies.
A county-by-county breakdown of the figures for this month shows that Dublin accounted for 44% of all insolvencies, with Cork and Kildare, between them, recording a further 18% of insolvencies - 10% and 8% respectively. In all, 95 companies held meetings of creditors showing short-term debts of more than €20.8 million.
Vision-net's figures recorded 3,418 company and business start-ups this month - up 7% on the same period in 2012 - showing an average of 136 start-ups per day. Of these, 2,277 were registered business names while 1,141 new companies were incorporated.
In the hospitality sector, over two-thirds of companies were deemed high risk while, in construction, 58% of firms were in danger of collapse.
Vision-net's figures for January show that 554 registered commercial and consumer judgments worth €29.4 million were awarded in the courts. Of these, 396 judgments worth €26.4 million were awarded against consumers in January - an average of over €66,661 per judgment. This is a 33% drop on the average awarded per consumer judgment in December 2012 which stood at just over €101,000.
Christine Cullen, Managing Director of Vision-net, said February's figures are encouraging.
"Our figures for this month continue to support the possibility of recovery in the domestic economy. We recorded over 3,400 start-ups this month - a 7% rise on start-ups on this time last year. These figures, combined with the on-going drop in the number of companies declared insolvent, most notably a 32% drop in February from last year, following a 21% drop on January figures. Businesses should take these figures as an incentive to continue using smart business practices such as detailed research into their marketplace," said Ms Cullen.