PRODUCT PROFILE

Latest Dublin Prices

Insolvencies drop by a fifth in a year

Wednesday, January 30 14:09:30

The number of businesses collapsing this month is down by over one-fifth compared to the same month last year, according to the latest figures from Vision-net.

The figures, covering the period between January 1 and 28, show that 101 business collapsed - a 21pc decrease on the same period in 2012.

Of those, 75 were liquidated, 24 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 35pc of all insolvencies, with Cork the second highest on 17pc. In all, 89 companies held meetings of creditors showing short-term debts of more than E38 million.

Vision-net's figures recorded 2,986 company and business start-ups this month - down 3pc on the same period in 2012 - showing an average of 106 start-ups per day. Of these, 1,810 were registered business names while 1,176 new companies were incorporated.

In the hospitality sector, over two-thirds of companies were deemed high risk while, in construction, 58pc of firms were in danger of collapse.

The figures for December show that 397 registered commercial and consumer judgements worth E25.3 million were awarded in the courts. Of these, 218 judgements worth E22.1 million were awarded against consumers in December - an average of over E100,000 per judgement.

Christine Cullen, Managing Director of Vision-net, said January's figures are encouraging.

"Our figures have recorded almost 3,000 start-ups so far this month. This, coupled with a 21pc drop in the number of companies declared insolvent, shows some tentative signs of recovery in the domestic economy. New companies, as well as those already established, should give themselves the best possible chance of success by researching the marketplace before making decisions with their money. Professional credit check and risk analysis services can save money in the long run," said Ms Cullen.