ASIC Involvency Statistics

8 September 2016

Insolvency appointments are on the rise according to the latest ASIC insolvency statistics. The number of companies entering external administration for the June quarter 2016 increased from 2,283 compared with 2,106 in the March quarter 2016, representing an increase of 8.4%.

The five year trend indicates a rise of 7.3% in external administration appointments for the 2015/16 financial year of 9,848 compared with 9,177 in the 2014/15 financial year. The appointments for the 2015/16 financial year are lower than the 10,757 reported for the 2011/12 financial year and 10,746 recorded for the 2012/13 financial year. A summary of the five year trend is as follows:

Year

Number

% Change
2011/12

10,757

9.4%
2012/13

10,746

-0.1%
2013/14

9,822

-8.6%
2014/15

9,177

-6.6%
2015/16

9,848

7.3%

Changes in types of Appointments

Creditor's Voluntary Liquidations contributed to the highest number of appointments from the quarter ended June 2015 to the quarter ended March 2016 and June 2016, followed by Court Liquidations and Voluntary Administrations. Receiverships were consistently the lowest contributor to the number of appointments nationally across these quarters.

There was national growth in the June 2016 Quarter compared with the March 2016 Quarter in the following appointment types:

Creditor's Voluntary Liquidations – 19.1%
Receiverships – 34.9%
Voluntary Administration – 18.7%

The statistics reflect a decline of 16.7% in Court Liquidations.

Appointments by Region

The number of appointments from the quarter ended June 2015 to the quarter ended March 2016 and June 2016 were consistently highest in New South Wales, followed by Victoria and Queensland. The lowest number of appointments across these quarters were in Northern Territory and Tasmania. The number of appointments fell in Western Australia, South Australia and the Australian Capital Territory.

The following summarises appointments by region:

State/Territory
Jun Qtr 2015
Mar Qtr 2016
Jun Qtr 2016
%
% change Jun Qtr 2016
Change in no. Mar Qtr 2016
% change Mar Qtr 2016
1.

NSW
1000
658
767
33.6%
-23.3%
109
16.6%
2.

VIC
756
594
679
29.7%
-10.2%
85
14.3%
3.

QLD
592
444
453
19.8%
-23.5%
9
2.0%
4.

WA
221
241
228
10.0%
3.2%
-13
-5.4%
5.

SA
97
102
81
3.5%
-16.5%
-21
-20.6%
6.

ACT
38
41
40
1.8%
5.3%
-1
-2.4%
7.

NT
16
13
19
0.8%
18.8%
6
46.2%
8.

TAS
14
13
16
0.7%
14.3%
3
23.1%

Total
2734
2106
2283
100%
-16.5%

8.4%

Appointments by Industry Type

The top 5 industries for appointments remained consistent from the quarter ended June 2015 to the quarter ended March 2016 and the quarter ended 30 June 2016 being:

1. Other (business services & personal services)
2. Construction
3. Other Industries
4. Accommodation & food services
5. Retail trade

Overall, the appointments in these industries in the June quarter 2016 were less than appointments in the quarter ended June 2015 but greater than the appointments for the quarter ended March 2015.

A summary by industry is as follows:

Industry
June Qtr 2015
Mar Qtr 2016
June Qtr 2016
% change June Qtr 2015
% change Mar Qtr 2016
1.
Other (business & personal services)
984
755
761
-22.7%
0.8%
2.
Construction
470
369
376
-20.0%
1.9%
3.
Other Industries
265
350
233
-12.1%
-6.8%
4.
Accommodation & food services
256
196
228
-10.9%
16.3%
5.
Retail Trade
214
159
162
-24.3%
1.9%

Action

Don't let your business become another statistic! If your business is experiencing financial difficulty, it is important to act promptly to maximise the likelihood of being able to achieve a successful restructure and save the business and company.

If you would like to take advantage of the guidance and assistance of an experienced, independent advisor, call Rodgers Reidy now for a confidential discussion in relation to your specific business circumstances..

Further resources:-

1. www.asic.gov.au