Bryan Williams: BWA Insolvency Principal on company liquidations rising again

Businesses still seem to be doing it tough. 

The latest Centrix data for June shows the number of people behind on payments is down on last year, for the fifth consecutive month in a row. 

At the same time, company liquidations have risen 27% year-on-year. 

BWA Insolvency’s Bryan Williams told Ryan Bridge he expects it to start falling again later this year. 

He says people will have a more enlightened view of their future and will likely have greater discretionary funding to spend as we head towards Christmas. 

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Episode Transcript

Speaker 1 (00:00):
You start it out this morning from Centrics and business
liquidations up twenty seven percent year on year. Business loan
defaults also up fourteen percent. Brian Williams, principal at BWA
insolvency with me this morning.

Speaker 2 (00:11):
Brian, Good morning, Oh, good morning, Ryan. Good to speak
with you.

Speaker 1 (00:14):
Great to have you on.

Speaker 2 (00:15):
Now.

Speaker 1 (00:15):
Are these insolvencies because of the economy or because we're
taking more enforcement action? What's behind them?

Speaker 2 (00:23):
I think that's the combination of both. To be honest,
I think that the pit four headholders to take the
view that they can no longer continue with their current
circumstances is certainly a feature of what we're seeing, but
it is clearly a result or an after glow of
COVID and the lower demand that's flowed out of the

(00:44):
government policies. I think that's exposed. We can balance sheets
as the tigers out. Of course, that exposes all of
those rocks that are not there, not forming the strongest
position for the companies, and they can't be dealt with
by continued levels of sales that existed in the past.

Speaker 1 (01:03):
What sort of businesses are able to survive? I mean,
are you seeing trends in terms of industries, presumably constructions
up there.

Speaker 2 (01:12):
Well, I think the construction always features highly anyway because
they represent such a high proportion of the gross domestic
product of the country. But they're certainly high, no doubt
about that. The particular segment inside the construction industry of
those builders that started for the hammer and started to

(01:32):
smash nails and a timber and don't necessarily have followed
up with the experties that required to make sure that
they're very slim margins results in survival.

Speaker 1 (01:44):
Sorry, yeah, absolutely. When do you see this turning around?
I mean, you're at the cold face and we're seeing
it every month. We get the reports that it's here
on year, still up. When do we start to see
it come down? Do you think?

Speaker 2 (01:57):
I think later this year, And it could be asked,
why would I think that? I think that there is
a discretionary spend will increase as the year progresses, as
the sun shines more towards Christmas. People have an enlightened
daughter like the viewpoint about their future. But they've got
to have funds to spend, and that is going to

(02:18):
be lowered interest rates and I guess costs coming down.
So I think that later on this year there will
also be a I think a new surge of a
new economy on the way. If gear political environment will
allow it, there'll be a new economy on the way.
AI is featuring more and more in the news all

(02:41):
the time, and there'll be new providers, new supply siders.
So I think Christmas New Year will be the time
where we get a.

Speaker 1 (02:50):
Little little boast, little kickback. Brian appreciate you at least
not go getting worse month on month. Brian appreciate you
Tom this morning. Thank you very much, principal at e Insolvency.

Speaker 2 (03:02):
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