1,100 firms insolvent so far this year

MORE THAN 1,100 companies went out of business in the first nine months of the year, according to new figures released today.

Data from InsolvencyJournal.ie, a website run by Dublin insolvency firm Kavanagh Fennell, indicates 1,132 firms folded between January and September, up 12.5 per cent on the same period in 2009.

The numbers increased from 95 in August to 120 in September. The September figure is a marginal increase on last year’s total of 114 insolvencies for September 2009.

The figures for the third quarter are down marginally on the same period last year. However, the number is expected to rise for the final quarter. In 2009, almost a third of total insolvencies were recorded during the final three months of the year.

Construction continues to be the hardest-hit industry, with 351 firms going out of business so far this year. During September, there were 42 insolvencies, the highest number of any sector and an increase on the August figure of 32. However, Ken Fennell, a partner with Kavanagh Fennell, said there was evidence of some stabilisation in the sector.

The services industry has also been hit hard, with 207 insolvencies this year. Last month, 20 firms went bust, a rise of 10 per cent on August.

Elsewhere, there were 16 insolvencies in the retail sector in September, bringing the yearly total to 140, and 15 in the hospitality industry for a total of 143 in the first nine months of 2010.

There was some good news in the IT sector, where there was a decrease in the level of insolvencies, with just one in September, down from three in August, seven in July and six in June.

Regionally, Ulster and Munster were hit hardest proportionately.

“We’re seeing some sort of a bottoming out of the figures. On a month-to-month basis the number is up in September, but the drop in August was seasonal,” said Mr Fennell.

“The numbers for the entire year look as if they will be up slightly on last year, as we predicted at the start of the year. We’re probably looking at somewhere around the 1,500 mark. The figures show the trading environment is still challenging for businesses, but there is some sort of stabilisation taking place,” he said.