Petrina Timoney / Laurie Mannix, MKC Communications 01 703 8600
Experian insight reveals impact of recession on Irish business
Dublin, Ireland, 6 July 2009: Experian®, the global information services company, today published new Irish business figures for January to June 2009. Experian’s analysis shows that, for the first time since 2003, the number of companies being dissolved has exceeded the number of new companies being registered with the Companies Registrations Office (CRO).
The analysis shows that there has also been a dramatic increase in the number of bank appointed receivers to companies in difficulty and a significant increase in the number of companies seeking protection from creditors by filing for examinership.
Between 1 January and 30 June 2009:
Jim Kennedy, Head of Operations, Experian Ireland, commented: “The effects of the global recession continue to cut deeply into Irish business. In the current climate, cash is king. Businesses that will emerge strongly from this recession are those that maintain excellent credit controls and use real time data and insight to decide whether or not they should do business with a customer or supplier.
“It is no longer sufficient to rely on out of date company accounts. Newer tools such as payment performance data can be used to identify companies’ payment patterns and worsening payment trends. These are strong indicators of the cashflow in a business and will not only indicate whether a customer is likely to pay, but also when.
“Reducing the risk of bad debts is critical for any company. We recommend that businesses use as wide a variety of business information tools as possible to create an early warning system to alert them to customers or suppliers heading into difficulties”.