The examinership process saved 138 jobs at troubled SMEs in the first quarter of this year, a decline of 63 per cent on the same quarter last year.

The latest Hughes Blake SME Examinership Index shows 138 jobs were saved in the first quarter, with tourism and construction sectors benefiting the most.

Hughes Blake managing partner Neil Hughes said a pronounced shift is taking hold whereby demand for the examinership corporate recovery mechanism is falling in line with increased business owner confidence and the enhanced opportunities that exist for businesses across the country.

However, he cautioned that the figures should not lead to complacency and that challenges remain for SMEs.

He said key among these challenges is the increasing role that private equity funds are playing in the Irish market.

“The economic crash we experienced put Ireland on the map for international private equity firms, with many continuing to purchase blocks of loans from lending institutions at discounted rates. As welcome as the economic recovery is, we also have to be mindful of the effect it is now having whereby these same private equity firms are incentivised to unlock the value in the loans to make a profit.”

He said assets, particularly property assets, that underlie the loans are rising in value and the funds will increasingly look to unlock capital by forcing them to be sold.