Failed firms fall by 45%

Last month saw a 45% year-on-year reduction in company failures with 89 insolvencies noted, compared to 162 in the same month last year.

However, the updated statistics from credit and business risk analyst Vision-net.ie show 60% or 53, of the cases resulted in liquidation.

Just under 30% related to companies going into receivership and only 11% were in the form of examinerships, despite new legislation allowing SMEs cheaper access to this form of court protection.

Counties Kilkenny, Leitrim, Limerick, Longford, Louth, Mayo, Offaly, Sligo, Waterford and Wexford were unaffected by insolvency during the month.

Dublin, Cavan and Cork were the counties with the most insolvencies.

However, while Dublin accounted for 42% of cases, its number fell by 50% year-on-year to 37.

Vision-net’s figures also show that just short of 4,300 new companies/businesses were formed last month, representing the best July performance in eight years.

On average, the month saw 138 new start-ups on a daily basis; with the leasing, utilities and transport/logistics sectors seeing particularly strong growth.

Of the overall figure, 2,517 qualified as new business registrations — up 24% on the same month last year — and 1,764 were new company start-ups and up 15% year-on-year.

The hospitality sector also experienced a healthy year-on-year boost, with new start-up numbers increasing by 22%, from 103 to 126.

The combined figures, according to Vision-net managing director Christine Cullen suggest “a consistent recovery for the Irish economy”.

“The continued upward trend in new start-ups and the drop in overall insolvencies indicate that the Irish economy is staying on course and is increasingly open to entrepreneurship and business growth,” she said.

“Particularly encouraging is the increase in new start-ups and decrease in insolvencies in industries hit especially hard by the recession, like transport and logistics, leasing and manufacturing,” said Ms Cullen.

Dublin, Cork and Galway were the three most popular counties for start-up activity last month.

Galway experienced a 36.5% jump in new start-ups, from 52 in July 2014 to 71 in the same month this year.