There has been an almost 20% decline in the number of business going bust in the first six months of this year compared to the same period last year.
Figures from the company information service Vision- net show that there have been 812 companies declared insolvent this year down 17% on the first six months of last year.
According to their latest filed accounts, 537 of the companies who have gone bust owe their short-term creditors €155m.
The courts have also awarded creditors €189m in corporate and consumer judgements for unpaid debts between January and May. The banks are the biggest creditors accounting for 43% of all judgments awarded.
Despite the decline in company failures there were still five companies failing everyday on average for the first six months of the year.
Managing director of Vision-net Christine Cullen said the figures show a slight improvement in the domestic economy.
“That the rate of company insolvencies is down 17% on the first half of last year is encouraging. The start-up rate is stable, showing that entrepreneurship is a strong trait in the domestic economy. However, high levels of personal and banking debt, and limited access to working capital, are hampering our recovery prospects,” she said.
Dublin accounted for 41% of insolvencies while a further 12% were in Cork with 5% in Kildare and then Kilkenny, Carlow, Cavan, Leitrim, Roscommon, Laois, Sligo and Longford all recorded company insolvency rates of less than 1%.
The professional services sector accounted for 18% of insolvencies so far this year, followed by construction with 17%, wholesale and retail with 14%, real estate with 13%, and manufacturing with 10%. These five worst affected sectors accounted for 72% of insolvencies so far this year.
Vision-net’s figures show that the first half of the year recorded 21,134 company and business start-ups — broadly in line with the same period last year. Of that figure, 13,551 were new business names, and the rest were company incorporations.
© Irish Examiner Ltd. All rights reserved