Did I just say Insolvency numbers were going down?…….wrong!
Well a week or so ago I was explaining here that corporate insolvency numbers were finally trending down with three of the last four months not being as high as the same month a year prior. That didn’t last long. ASIC has just published the corporate insolvency statistics for October 2012. Contrary to recent trends we are looking at record high numbers again. October saw 991 companies entering some form of insolvency administration (including Liquidation, Voluntary Administration and Receivership) which was the highest October number on record. It was 148 appointments more than the previous October (a 17% increase) and a 28% increase over the average of the previous five Octobers.
2012 has been up and down. We saw record highs in the first few months, when insolvencies are normally slow (1,123 in February 2012 was the highest monthly number ever and was a whopping 47% increase over the average of the previous 5 Februarys). Slow growth in the middle of the year, when insolvency practitioners are usually the busiest (799 in June was actually a 2% decrease on the average of the previous 5 Junes) and now we are back to another record high for October.
The other key statistics are:
The number of companies entering some form of insolvency administration in the 12 months to October 2012 was 10,751. That is a 3% increase over the previous year and a 17% increase over the average of the previous 5 years.
The number of insolvencies in October 2012 was 991 which was the highest October number on record. It was a 17% increase from the previous record (October 2011 with 843) , and a 28% increase over the average of the previous five Octobers.
October was another bad month for Queensland with 236 insolvencies, making up 24% of the national total. This was the second highest monthly figure ever for Queensland .
We are expecting RBA stats in two weeks so stay tuned for analysis of those and our quarterly Business Stress Report.