Business Barometer

Significant increase in insolvencies in challenging H1, however modest increase in new startups is reason for optimism

Acute insolvency increases in prominent sectors including hospitality (214%), construction (148%) and financial services (+37%).

Dublin (+35%) and Cork (+ 65%) see jump in insolvencies, Limerick (-43%) and Galway (-19%) fair better.

Offaly (+39%), Kerry (+31%) and Roscommon (+30%) amongst 20 counties to see YoY new start-up growth.

Dublin (+7%), Cork (+5%) and Galway (+8%) all record modest startup growth, with Limerick the only large urban centre to see decline.

Prominent sectors including hospitality (+12%), IT (+9%), construction (+6%) and financial services (+6%) all see start-up growth.

The first six months of the year saw a 48% year-on-year increase in insolvencies, with 410 insolvencies recorded in H1 2023, versus 277 for the same period in 2022, according to the latest figures from credit risk analyst CRIFVision-Net.

Despite the relative health of the Irish economy, the first half of 2023 has been a period characterised by continued global macro uncertainty and inflationary pressures. The period saw significant insolvency growth in key sectors including hospitality (+214%), construction (+148%) and financial services (+37%).

At a county-level, Dublin (+35%) and Cork (+65%) both recorded double-digit growth in insolvencies, meanwhile other major urban populations Limerick (-43%) and Galway (-19%) performed more positively, recording significant decreases in insolvencies.

Growth in Startups is Reason for Optimism

Overall, there was a seven per cent increase in company startups, with a total of 20 counties recording year-on-year increases. Key economic centres Dublin (+7%), Cork (+5%) and Galway (+8%) all recorded modest YoY growth. Limerick (-6%) was the only large urban population to record a decrease in new startups.

Economic bellweather sectors such as hospitality (+12%), real estate (+10%), IT (+9%), financial services (6%) and construction (+6%) all recorded growth, however, from a relatively low 2022 baseline. Meanwhile another key industry, manufacturing, saw a nine per cent decrease in new startups.

May was the busiest month for new company startups (2,527), meanwhile February proved quietest (1,723).

Insight

Commenting on the H1 figures, Christine Cullen, Managing Director of CRIFVision-net said: 'Evaluating the first six months of 2023 is a far from straightforward exercise. At a global level, we continue to grapple with economic uncertainty, high interest rates, and a rising cost of living. Despite these macro-economic pressures, the Irish economy has on balance, proven more resilient than some of our neighbours. Corporate tax receipts are up and the Irish Government finds itself in the novel position of trying to decide how to allocate an E8billion budget surplus. That said, the continued rise in insolvencies is a reminder that these headline numbers don't tell the full story. As we turn our attention to the second half of the year, we hope to see a more business sentiment amongst Irish consumers and SMEs, and that this sentiment will materialise as a confidence, growth orientated mindset going into 2024.'

Insolvency Notices

1,134

The number of companies that have collapsed this year. This figure is up 32% compared to last year
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PREDICTIVE CREDIT REPORTS

Our Credit Reports are predicting over 80% of insolvencies at up to 6 months in advance.

Appointments

LIQUIDATORS

  • 70 Companies

E8 (Notice Of Appointment Of Receiver)

  • 1 Company

EXAMINERS

  • 0 Company

Closures

101

The number of companies that have closed this week.

New Startups

New Companies

  • 408 Companies

New Businesses

  • 3 Businesses

Important Changes

Changed Status

  • 369 Companies

HIGH COURT NOTICES

  • 3 Companies

Strike off & Struck off Companies

Strike Off

  • 125 Companies

Struck Off

  • 0 Company

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