Insolvency statistics Q1 2017
Total number of corporate insolvencies in Q1 was 219
The latest insolvency statistics published by Deloitte show that the total number of corporate insolvencies recorded in Q1 2017 was 219. This represents a 13% decrease on the same period in 2016 (251).
Looking back at the same quarter in prior years, we haven’t seen as low a total since 2009 when the effects of the economic downturn first began to be clearly seen in the insolvency statistics. While we still aren’t seeing the low levels of insolvencies recorded during the so-called Celtic Tiger years, it may be that the particularly low numbers seen in 2007 and 2008 were outliers themselves and we are currently moving towards a more realistic baseline to compare future levels to.
- Creditors’ Voluntary Liquidations (CVL) accounted for the majority of insolvencies with 114 recorded in the period (52%) closely followed by receiverships at 86 insolvencies (39%). Total CVLs have dropped by 34% in comparison with the same period last year (173 cases) and receiverships have increased by 34% (up from 64).
- While examinerships continue to remain at low levels we do see a significant increase in appointments compared to the same period last year. In Q1 2017 12 examinership appointments were made, in comparison to 2 in the prior period.
- Geographically, the highest number of corporate insolvencies in the period was recorded in Leinster with 64% (141) of the total appointments. This is consistent with the comparable quarter (68% of appointments). Looking more closely at the service sector, the majority of cases were in the financial services, consulting and property service company areas.
- An analysis of industry sectors shows that the service sector recorded the most corporate insolvencies in Q1 2017, with 76 (35% of the total), up one from Q1 2016 (74 insolvencies). In second position is the construction industry with 36 insolvencies (16%), down from 42 in Q1 2016, a decrease of 14%. This is in line with our expectations, seeing as this sector is improving recently.
David Van Dessel, Partner in Deloitte Restructuring Services, commented that “in 2017, we would anticipate similar overall levels of corporate insolvencies as in 2015 and 2016 seeing as the economy in general is improving. Companies in the services sector may continue to be most likely to enter an insolvency process in 2017 and we would also expect a slight decline in the number of construction company failures, given the improvements in this sector.”