Improvements in Insolvencies May Mask Problems in Some Sectors
Insolvencies across the economy declined in September and October, adding to the better numbers over the past 12 months. But businesses need to be vigilant.
FTI Consulting’s analysis of the latest ASIC insolvency statistics for the months of September and October 2017 show a decline from the levels seen mid this year and in the same period of 2016.
“While the figures reflect a continued downward trend in the number of companies entering external administration, which is positive, in reality there is still a fair bit of stress among businesses, and many remain at risk,” said Ross Blakeley, Senior Managing Director, Corporate Finance & Restructuring, at FTI Consulting.
In September, 627 companies entered external administration, down from the 741 recorded in August 2017. This fall represents a 12.4 per cent decline, year-on-year, with 716 insolvency administration appointments recorded in the same month of 2016. The October figure, at 606, follows a downward trend and a 10.5 per cent decline, year-on-year, with 677 appointments recorded in October 2016.
In total, 7,748 entities entered administration for the 12 months to October 2017, a 12.6 per cent improvement on the corresponding period in 2016 when 8,864 insolvencies were recorded.
Senior Managing Director