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SIX FIRMS HAVE collapsed each day so far this year – and those that have managed to remain in operation owe more than €142 million, according to newly released figures.
Between 1 January and 20 March, 462 companies were declared insolvent, according to figures released by business and credit risk analyst firm Vision-net. Of those declared insolvent, 266 were liquidated, 189 entered receivership and seven had examiners appointed to them.
Some 31,070 companies were stress-tested by the firm in the first quarter of the year and, of those, 15,485 (50 per cent) were deemed “high risk”, 17 per cent were deemed “medium risk” and 31 per cent were deemed “low risk”.
According to the figures, 261 Irish companies have held a meeting of creditors – marking a 9 per cent drop on the figure for the same period last year. According to their latest filed accounts, these companies owe their short-term creditors €142.3 million.
“Despite the Government’s recent jobs action plan and labour market activation measures, trade mission to China, and strong export performance buoyed by our thriving multinational corporation sector, the domestic economy is struggling to support business growth and stimulate positive consumer and investor sentiment,” said Christine Cullen, Managing Director of Vision-net.
“The incidence of business failure and creditor debt remains high and, although Irish people are anxious to start their own businesses, it is likely that many of them are doing so because they have no other way to generate income when the jobs market remains flat,” she added.
Some 1,248 registered consumer and commercial judgments worth €76.2 million were awarded in the courts during the first quarter of 2012, with 766 consumer judgement accounting for €62.8 million.
The Revenue Commissioners secured 275 judgements against consumers totalling more than €11.6 million and 95 judgements against commercial organisations amounting to over €3.1 million, according to Vision-net.
Meanwhile, credit unions accounted for 121 consumer judgements awarded by the courts valued at more than €2.5 million, and banks recorded 67 consumer judgements and a total pay-out of over €25.6 million.
Twenty-six per cent of start-ups in the first quarter of 2012 were in the professional services sector, while the wholesale and retail sector accounted for 12 per cent and social and personal services sector accounted for 11 per cent of start-ups.
Hospitality remains the most vulnerable sector of the economy, with 61 per cent of companies deemed to be “in serious danger of collapsing”, according to Vision-net. Similarly, just over half of construction companies are also in danger of collapse.
The prospect of survival for Irish firms involved in the information technology, motor, real estate, and wholesale and retail sectors is around 47 per cent, according to the data.
The number of first-time company directors dropped 34 per cent on the figure for the same period last year to 4,928. The report notes that the average age of a first-time director is 41, and that 62 per cent of them are men.
Cullen said research had consistently shown that the biggest cause of business failure is poor cash flow, stating: “Businesses are not running out of customers – but rather out of money”.
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Should be a requirement that one parent is working
Talk about throwing equality out the window. Like all things that’s for the betterment of womankind, it’s too slow, it’s too few and it comes with too many restrictions. Time for the women of Ireland to speak up on this matter. God forbid a woman can build a career first then only have 1 shot at IVF. FFG making more hurdles for the next government.
@Peter: women are having a families far too late in life. Thats a biological fact. There needs to be a societal shift into having families earlier in life. This is a step in the right direction and should help a lot of people who are struggling and should be commended. More to do yes
@Peter: so why don’t you run for election and change the system?
Why don’t you start a lobby group and advocate for change?
It’s a lot easier to just moan about “FFG” and do nothing, ain’t that right Pete?!?!
The scheme is a joke for sound bites only and when you look at the conditions it restricts too many women to make any benifit. Families having less kids and at an older age is a direct result of policies promoting such.
Security of a home, well we will punish and reduce your lending amount. Maturnity leave over, Time to return to work, well your baby is too young for creche and when of age we will charge a fortune. Shortage of schools in your area amongst new housing, well that land was given away free. Your child is on Austism spectrum. Well wait 2 years to be accessed and receive no help.
@Barney: kind of makes you wonder why people have children at all!
Definitely should be free. But I feel the age cut off should be 35.
The scheme is a joke! Basing it on having a BMI is ridiculous! If the government want to help people doing IVF they should regulate the IVF clinics so they stop falsifying their “success rates” to make more money from vulnerable people trying to realise their dreams!!
Perhaps we also need to change the societal narrative that there is something wrong with being childless? (Or even single, for that matter.) Everybody’s contribution to society is important, and life can be just as fulfilling for those who don’t follow the well-trodden path.
If you want children, pay for them yourself, or even do a good thing and adopt?
Don’t expect others to finance your choices!
@Alison Hughes: Assume you are against child support?
have your say