The biggest increases were registered by restructurable companies (32%) and insolvable companies (46%) and the smallest rise was registered by financeable firms (5%), according to a study conducted by insolvency practitioner Casa de Insolventa Transilvania (CITR) Group.
Only 50% of impact companies were financeable at the end of 2016, compared to 57% in 2015, 31% were restructurable and 19% were insolvable.
Compared to 2015, the turnover of impact companies rose nearly 7% in 2016 and debts grew nearly 18%.
CITR Group experts said nearly a third of impact companies fall within the 0-5% profitability range, and most of them are 70-100% indebted.
Although the turnover of impact companies rose to EUR203 billion in 2016, compared to EUR190 billion in 2015, generating profits higher by EUR3 billion (nearly EUR9 billion in 2016 vs. EUR6 billion in 2015), their employee numbers did not rise proportionally. The number of employees within impact companies increased by 6% in 2016, while the number of companies rose 19%. Therefore, one can see an increase in the number of companies with fewer employees per company, in the context in which two million people work within impact companies, accounting for 49% of total employees in Romania.