Rise in number of companies struck off

THERE are signs the business environment is stabilising in Ireland as entrepreneurial activity continues to grow, despite a sharp increase in the number of companies struck off, according to data from global information service group Experian.

Experian’s Irish Business Review for 2011 has found that 14,345 new companies were registered in Ireland last year, which is up by 246 on the previous year.

Over 46% of companies set up in 2011 were in Dublin, while almost 10% of new companies were established in Cork.

However, the review also found that the growth in new companies registered is counterbalanced by a large increase in the number of companies struck off.

In 2011, the number of companies listed for strike-off was 15,608 — up from 10,124 in 2010.

The review analysed data across metrics such as judgments, liquidations, payment performance, credit risk and the number of new businesses established in 2011.

It also looked at companies that have been removed or that are listed to be struck off the company register.

Experian’s research suggests that industry sectors such as agriculture, public services and general services, are set to experience growth.

Commenting on the data, Experian Ireland propositions manager, Ray Breen, said the good news is that deterioration has slowed, which suggests some stabilisation.

“We have seen an increase in the number of new companies registered, demonstrating that entrepreneurs are experiencing opportunities in Ireland,” he said.

“It illustrates that many Irish companies are encountering challenging trading conditions,” he added.

“The number of receivers appointed to companies in Ireland has increased from 363 in 2010 to 511 in 2011.

“There was also a 158% increase in the number of companies struck off in the motor industry year on year,” said Mr Breen.

Meanwhile, the report also found that invoices are being settled an average of 27 days beyond terms, which is almost two full days slower than was the case last year.