Ireland
UK
Scotland
London
The number of Irish companies going to the wall in the first quarter of 2008 has increased by over 60% on the same period in 2007, according to the latest figures from business advisory firm FGS.
The statistics reveal that 130 companies were placed in liquidation, receivership or examinership in the first three months of 2008, representing a sharp increase on the 81 failures for the same period in 2007.
The slowdown in the construction sector ranks this sector at the top of the table charting industry failures. 53 or 41% of all failures occurred in this sector in the first three months of 2008.
As the slowdown continues, these statistics will cause concern for an already beleaguered sector. For the same period last year there were 23 failures, which represented 28% of total failures for that period.
Transport has experienced a setback with eight failures in Q1 2008 compared to three for the same period in 2007. This statistic is concerning when compared to annual results in recent years. Annual statistics for failures with the transport and travel sector had improved in 2007 with the total number of failures decreasing to eight compared to a total of 16 in 2006, 20 in 2005 and 24 in 2004.
In contrast, the retail sector has experienced a dramatic recovery with a decrease in failures (nine) compared to the same period in 2007 (17). The clothing sector has also enjoyed a slight recovery from six in Q1 2007 to four in Q1 2008, as has the printing and packaging industry, with only two failures in Q1 2008 compared to six for the same period in 2007.
With regard to the trends emerging from the 2008 statistics it is noted that Dublin continues to account for the majority of failures. Some 61 or 47% of all failures in Q1 2008 took place in the capital which is an increase compared to 34 or 42% in Q1 2007.
Notable trends in the industry sectors, in which the failures have occurred, include the high level of failures in the hospitality sector such as pubs, restaurants and suppliers to the industry where 14 collapses occurred or 11% of the total.
(VB/JM)
