Insolvency Insights | Analysis of ASIC’s latest external administration appointments statistics from March 2015
Similar to past years, the number of companies that entered into external administration in Australia during March increased when compared to February records, with 655 insolvencies reported in February 2015 versus 832 in March 2015. Comparing this to the same period last year, where there were 764 firms in March 2014, up from 739 firms in February 2014.
Over the quarter, companies entering external administration totalled 1,917 nationally, compared to 2,003 quarter-on-quarter. This was the lowest quarterly result recorded since March 2008. All states saw a rise in external administration appointments, with the territories recording falls. Particularly sharp rises were seen in New South Wales with 333 in March versus 240 in February, and Queensland with 173 in March from 135 in February.
The Reserve Bank of Australia (RBA) left the cash rate on hold in March at 2.25%, with the Board deciding that the recent easing warranted keeping rates steady for the time being. It noted that further cuts would be considered if appropriate to “foster sustainable growth in demand and inflation consistent with the target.”
In this edition of Insolvency Insights, we also feature a Special Focus Q&A with Ian Francis, Senior Managing Director, Corporate Finance/Restructuring on trends within the Australian professional services.
Lastly, in our outlook for the market, we note that job advertisements increased in April after falling for the first time in nine months in March.