MANAGER |
Keaton Pronk |
LIQUIDATOR 1 |
Keaton Pronk |
LIQUIDATOR 2 |
Iain McLennan |
DATE APPOINTED |
Wednesday, 22 March 2023 |
DATE CEASED |
- |
MANAGER |
Iain McLennan |
LIQUIDATOR 1 |
Keaton Pronk |
LIQUIDATOR 2 |
Iain McLennan |
DATE APPOINTED |
Wednesday, 19 April 2023 |
DATE CEASED |
- |
MANAGER |
Keaton Pronk |
LIQUIDATOR 1 |
Keaton Pronk |
LIQUIDATOR 2 |
Iain McLennan |
DATE APPOINTED |
Friday, 17 March 2023 |
DATE CEASED |
- |
MANAGER |
Colin Sanderson |
LIQUIDATOR 1 |
Colin Sanderson |
LIQUIDATOR 2 |
Iain McLennan |
DATE APPOINTED |
Wednesday, 5 April 2023 |
DATE CEASED |
- |
MANAGER |
Colin Sanderson |
LIQUIDATOR 1 |
Colin Sanderson |
LIQUIDATOR 2 |
Iain McLennan |
DATE APPOINTED |
Thursday, 2 March 2023 |
DATE CEASED |
- |
MANAGER |
Keaton Pronk |
LIQUIDATOR 1 |
Keaton Pronk |
LIQUIDATOR 2 |
Iain McLennan |
DATE APPOINTED |
Thursday, 2 March 2023 |
DATE CEASED |
- |
Running a business successfully is a complex and challenging task that requires careful planning, strategic thinking, and effective management. Sometimes it can feel like you're barely keeping your head above water.
One of the key challenges that business owners and managers face is ensuring that the company remains financially stable and solvent over the long term. Unfortunately, many businesses fail to recognize the warning signs of financial trouble until it's too late.
One common mistake that many businesses make is overlooking warning signs or failing to address them in a timely and effective manner. For example, a company may continue to invest in an unprofitable product line or market, or delay making necessary cost-cutting measures until it's too late. In some cases, business owners may also ignore the advice of financial experts or fail to seek out professional help until it's too late.
As the saying goes, "barring a major disaster, a business doesn't go from being perfectly fine to insolvent overnight." This means that there are usually warning signs or "precipitating events" that lead to financial trouble. These events may include declining sales, increased competition, rising costs, poor management decisions, or other factors that impact the company's bottom line. If you're experiencing any of the following warning signs, your business could already be in trouble and it's time to take action:
Don't wait until it's too late to save your business. Start by negotiating compromises with your creditors and working towards paying off your business debt. It's also important to speak with a qualified professional, like the team at McDonald Vague, who can provide advice on how to avoid insolvency and improve your cash flow.
Remember, your business doesn't have to fail. By taking action now and seeking professional advice, you can turn things around and set your business on a path to success.
In conclusion, running a financially stable and successful business requires careful planning, effective management, and proactive risk management. To avoid business failure, it's essential for business owners and managers to stay vigilant and proactive in managing their finances. This means regularly reviewing financial statements and performance metrics, identifying potential risks and challenges, and taking steps to address them before they become major problems. It also means seeking out the advice and expertise of financial professionals, such as accountants or financial advisors, who can help identify potential issues and provide guidance on how to address them.
By staying vigilant and addressing warning signs and potential problems in a timely and strategic manner, businesses can avoid the pitfalls of financial instability and position themselves for long-term success.
Figures released in March saw the New Zealand economy gross domestic product (GDP) fall 0.6% in the last three months of 2022, after a 1.7% rise in the September 2022 quarter. The drop at the close of the year was larger than predicted by many of New Zealand banks and a number of economists. Annually, GDP is up 2.4% year on year, unemployment remains low, at 3.3%.
Two large banks in the United States with significant exposure to the technology sector failed, while another entered liquidation under financial distress. These banks were Silvergate Bank, Silicon Valley Bank, and Signature Bank. Outside the United States, Credit Suisse joined the above 3 banks finding themselves in difficulty, the difference here being over the last few years Credit Suisse has been in and out of the news with a number of issues and negative media attention.
From a housing perspective the downward trend continues with both monthly sales figures and year to date sale figures at their lowest in 40 years dating back to figures last seen in the 1980’s.
March’s company insolvency figures were at the time of writing slightly above those of the past three years, as we move through April final March appointments will be advertised and widen the gap over the last three years, whether March can reach the 2019 levels will show in our April Newsletter. The breakdown in the types of appointments came back in line with normal monthly figures with shareholder appointments making up 80 of the 178 appointments, there was a significant bump in receivership with 27 for the month well above the monthly average of 7, this was largely due to a group of companies (20) being placed unto receivership at one time. Court appointments also remained high but not at their February levels bringing in 45 for the month.
Historically solvent appointments have seen a jump in March at the financial year end, this level while slightly elevated in March 2023 at 23 was below the past two years where solvent appointments were in the mid to high 30’s.
It will be of interest whether the normal drop seen in April follows past years, this is normally the result of appointments pushed through to get into the end of financial year and a number of public holidays in April resulting in less working days, this negatively affects appointments for the month.
March 2023 applications while below 2021 figures are above 2022. Once again, the corporate winding up applications portion of total applications have remained above the IRD share of the applications. As outlined last month IRD often takes a few months to hit their stride in issuing winding up applications. As seen in the below graph from May/June onwards we should see an increase in IRD application, whether this plays out in an election year is yet to be seen.
Personal insolvency stats remain low, if slightly above January’s figures. Of the 106 total, 50 were from bankruptcies, 49 from No Asset Procedures and the remainder from Debt Repayment Orders. This breakdown is roughly in line with past months, Bankruptcies and No Asset Procedures remain at similar numbers with Debt Repayment Orders 10% of the total.
If you want to have a chat about any points raised or an issue you may have you can call on 0800 30 30 34 or email This email address is being protected from spambots. You need JavaScript enabled to view it..