Insolvencies drop by 26pc nationally from January – Vision-net

Vision-net’s monthly figures, covering the period 1–27 January, show that 74 business were declared insolvent during the month – a 26pc decrease on the same period in 2013.

Of those, 39 were liquidated, 34 entered receivership and an examiner was appointed to one company.
 
A county by county breakdown of the figures for this month shows that Dublin accounted for 49pc of all insolvencies, an increase of 13.6pc over January 2013.

Galway had the second highest level of insolvencies on 8pc, followed by Wexford at 7pc. The number of insolvent companies in Cork fell by 11.6pc to 5.4pc of all insolvencies over those of last January. 
 
The real estate sector accounted for just over 16pc of all insolvencies recorded in January, followed by the construction sector at 15pc and the hospitality sector at 13.5pc.
 
In all, 46 companies held meetings of creditors this month, a 48pc drop on the same period in 2013. These companies owed creditors short-term debts of more than €9m, down from €38.6m last year or a 75pc decrease. However, 34 receivers were appointed to companies during January. 
 
Vision-net’s figures recorded 2,958 company and business start-ups this month – in line with the same period in 2013 – showing an average of 109 start-ups per day. Of these, 1,896 were registered business names while 1,062 new companies were incorporated.

“Yesterday the Central Bank predicted economic growth of 2.1pc, but stressed the importance of businesses reducing their debt burden to facilitate economic recovery,” said Christine Cullen, managing director of Vision-net.

“Today’s Vision-net figures show a 26pc drop in insolvencies and 48pc drop in meeting of creditors in January. While a monthly snapshot, these figures represent hopeful signs that Irish businesses may be beginning to be less vulnerable to the risk of collapse and better able to manage their business debts.”

Image by www.shutterstock.com