Insolvency risk in Rocky at 18-month low
BUSINESS risk is at an 18-month low in Rockhampton, according to newly released insolvency figures.
The data from SV Partners Commercial Risk Outlook for August shows only 2.3 per cent, or 23 of 991 Rockhampton businesses, were considered at high to severe risk of insolvency within the next year.
Of those at risk, 65 per cent have a turnover of $1 million to $10 million.
This figure is down 0.7 per cent from August 2017.
The lowest the figure has been previously is 2.6 per cent.
Accommodation, food services and construction are the most at-risk industries in the region.
While the real estate, arts and recreation, information media and telecommunication, public administration and safety, and wholesale trade were at the lowest risk of financial difficulties.
SV Partners Associate Director Frank O'Neill said Rockhampton's outlook was comparable to regional neighbours, Mackay at 2.2 per cent and Gladstone at 2.4 per cent.
It's also more positive than Brisbane where 2.8 per cent of businesses were at high to severe risk of failure.
"With the near completion of the riverside revitalisation program and a number of local projects around the corner, things are really looking up for Rocky businesses, and this is reflected in the insolvency risk data," said Mr O'Neill.
"Regional centres like Rockhampton are really driven by small businesses, so it's promising to see the numbers of businesses at risk falling."
The report categorises businesses into eight risk bands covering minimal to severe.
High risk business behaviours include late payments on loans or debts or cash flow problems and these businesses are predicted to undergo serious adverse financial stress in the coming year.
The SV Partners Commercial Risk Outlook Report analyses the overall economic conditions of Australian business activity based on the most comprehensive and latest commercial bureau data including trade payment history and data from over 50 variables.