Latest Liquidation Statistics
Q4: October – December 2015
Insolvency statistics released by the government reveal the estimated number of insolvent companies between October and December fell by 10.5% year on year. The number decreased 2.7% since the third quarter of 2015.
Total annual company Insolvencies were at the lowest level since 1989.This decrease was mainly driven by a decrease in compulsory liquidations, which fell to the lowest annual total since 1981. This indicates that HMRC who make up 60% of all petitioners have started to use winding up petitions less and less as a means of collecting debts.
There is a similar story in the personal market with the total number of debt relief orders, bankruptcies and IVAs all down.
Q3: July – September 2015
The latest figures released by the Insolvency Service show the estimated number of companies in liquidation between July and September was 3,063, down 10.6% since the same period last year.
The number of companies in compulsory liquidations fell by a whopping 29.2% since Q3 2014- the lowest level since 1989. Creditors Voluntary Liquidations fell only slightly by 4.3% since the same time last year.
The liquidation rate is at the lowest level since 1984 – it represents 0.46% of active companies over the last 12 months.
Insolvencies are continuing to decline as expected. More and more companies are turning to informal turnaround methods and securing alternative funding, ensuring debt problems are dealt with quickly and liquidation can be avoided.
Q2: April – June 2015
The Insolvency Service’s latest statistics for April to June reveal the number of companies entering a formal insolvency procedure fell 2.9% since the last quarter and 7.5% since Q2 2014, resulting in the lowest number of company insolvencies since 2007.
The number of companies in compulsory liquidation fell by 15.4% since the first quarter and 21.9% since the same time last year. This was the biggest drop compared to other insolvencies and contributed most to the overall decline.
There were fewer company voluntary arrangements between April and June, down 2.2% since the first quarter to 91. Compared to last year, the number has dropped by a staggering 35.9%, making it the lowest number since 2007.
There were also a few increases since the last quarter.
The number of companies entering creditors voluntary liquidation rose by 0.5% since Q1 (with just a slight fall of 2.3% since the same period in 2014).
The Companies House data also shows an increase in administrations and receiverships. While the number of administrations fell by 1.2% since the beginning of 2015, there has actually been an increase of 4.8% since the same time last year. Q2 shows a total of 423 administrations.
Receiverships (which include LPA property receiverships) have risen by 12% since the first quarter but have fallen 7% year on year. This indicates a current increase of companies and individuals taking out loans against property and failing to pay them back, resulting in more appointments.
Source: Insolvency Service – gov.uk
Aside from compulsory liquidations, the statistics indicate the number of companies in formal insolvencies is starting to fall at a slower pace, compared to a year ago where falls were quite significant. Figures are flattening but are still in a gradual decline most likely due to the improving economy, low interest rates and an easing of pressure from creditors.
With a slight increase of administrations since 2014, we may see a further rise throughout 2015. The number of compulsory winding up petitions also looks set to fall significantly over the next year as more companies focus on informal turnarounds and prevent their businesses from being wound up by the courts.