/ 2 February 2005

Liquidations decline 14,1% in 2004

The total number of liquidations recorded for 2004 was 3 510, a 14,1% decline on the 2003 total of 4 086, Statistics South Africa said on Wednesday.

The 14,1% decline was due to a decrease of 34,2% (from 857 to 564) in compulsory liquidations and a drop of 8,8% (from 3 229 to 2 946) in voluntary liquidations.

In December 2004, liquidations rose by 31,8% year-on-year (y/y) to 257 after surging in September by 68,1% month-on-month to 437 from only 260 in August.

The record monthly total of 511 was achieved in August 2000.

The total number of liquidations in the fourth quarter fell by 26,3% from the third quarter.

The decrease of 26,3% in the total number of liquidations for the fourth quarter of 2004 compared with third quarter 2003 was due to a decline of 44,7% (from 190 to 105) in compulsory liquidations and a 21,9% drop (from 798 to 623) in voluntary liquidations.

The total number of insolvencies fell by 47,8% y/y in November to 117 after plunging by 55,8% y/y in October to 114 following September’s 57,4% y/y drop to

116 and August’s 52% y/y decline to 119.

The total number of insolvencies for the first 11 months of 2004 decreased by 34,1% (from 2 386 to 1 573) compared with the first 11 months of 2003. – I-Net Bridge