Construction sees insolvencies drop

THE worst could now be over for the construction industry with a 33% fall in insolvencies last month.

However, insolvency firm kavanaghfennell predicts that there won’t be a decline in corporate insolvencies this year on 2010 levels.

Their figures show that four companies a day went bust between January and May this year. In the construction industry there was 24 insolvencies last month, compared to with 36 in April.

Ken Fennell of kavanaghfennell said: “These figures are perhaps showing some respite for the industry that has suffered continuously during this recession and this may indicate that the worst is over for the construction sector.”

The retail industry also saw a slight decrease in companies going out of business from 22 in April to 19 in May.

The figures show that May saw a small relief in the number of corporate insolvencies, with 122 appointments recorded during the month. So far this year there has been just eight examinerships.

The total number of corporate insolvencies for the first five months of 2011 was 680, an increase on the same period last year of 3% but a drop of 25% on April’s figure of 162.

Mr Fennell said the 25% month-on-month decrease is welcome but it may be premature to believe that the bottom has been reached with regard to the number of corporate insolvencies as the year on year comparison is continuing to show an increase.

Some high profile receiverships in May included a company owned by TD Mick Wallace, M&J Wallace.