What’s happening…

Insolvency News

26 March 2013

What a remarkable year 2013 has shaped to be so far; with the election of a new Pope, the calling of a federal election eight months out, the rise of the Australian stock market above the 5000 point mark the highest since the Global Financial Crisis (GFC), through to the unemployment rate remaining steady at 5.40% with over 70,000 jobs being created in the month to February alone (ABS 14/3/13) but we are still seeing consistent growth in company collapses (year on year trend). Talk about a mix of the good and the bad!

We have seen The Byron Bay Cookie Company fall into Administration, Mornington Park Homes in Tasmania become another victim to the building industry graveyard and South Sydney Leagues’ Club in administration. 

Statistics show the number of companies that entered into some form of insolvency administration from 2011 to 2012 had increased and continues to rise. The most recent release by Australian Securities & Investments Commission (ASIC) records 10,632 company collapses for the 12 months to December 2012 – averaging 886 a month. The number of firms being placed into administration in December remained relatively high (2,618), over 8.50% higher than March 2009 (2,408) at the height of the global financial crisis. (http://www.asic.gov.au). O’Maras has found that our business in this area has been on the steady increase in line with these figures. 

We pride ourselves in the rapid turnaround in valuations for insolvency purposes and have customised our reports to better meet the unique needs of the instructing party, providing our clients with key information to make informed decisions regarding the trading position of companies. 

There are many impacts on the economy to watch & the reported figures do not allow drilling down by particular industries, however, based on our current workload and experience, it is likely smaller retailers, construction & manufacturing industries will continue to face challenges. 

To learn more or to have a confidential discussion please contact O’Maras for an assessment for how we can assist your business today.


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