.jpg)
23 July, 2016
Analysis and commentary by FTI Consulting reveals that the trend of increased corporate insolvencies across Australia remains. For the 12 months to April 2016, the total number of companies that entered external administration was 10,258, an increase of 15% on the same period last year (12 months to April 2015) where the equivalent number of companies was 8,899.
The number of company insolvencies reported in Western Australia and Queensland were higher than the national average, both increasing by 21% to 1,014 and 2,191 respectively for the 12 months to April 2016. For the same period, New South Wales had the lowest rate of change with only a 5% increase in company insolvencies from 3,246 to 3,402. Meanwhile, the Northern Territory reported the largest increase of 40%, however the total number of companies remains small, up from 52 to 73 companies.
“The pain continues in the mining states of Western Australia and Queensland, with those states reporting company insolvencies significantly higher than the national average. These economies are transitioning away from a reliance on mining as the boom is clearly over,” said Ian Francis, Senior Managing Director, Corporate Finance & Restructuring at FTI Consulting.
"The next phase in the mining downturn is playing out – mining and mining services companies have been under pressure for some time and we are now seeing the related impact on the property sector.
“The property sector is undergoing a major correction and here at FTI we are seeing a number of forced insolvencies, particularly in regional towns in WA and Queensland, which have been driven by forced sales and increasing pressure on rents and property prices,” Mr Francis said.
Please click here for the full report.
For further information, please contact:
Greg Hallahan, Senior Director, FTI Consulting
greg.hallahan@fticonsulting.com
