The latest official company insolvency statistics from the Insolvency Service for Q3 2014 were published on 29th October, revealing that companies entering any form of corporate insolvency procedures were down 13.39% compared to the same quarter in 2013.
Delving a little deeper, we see that the decline in Company Liquidations was 11.7%, in Receiverships the decline was 30.8%, with the declines for Administrations and Company Voluntary Arrangements being 18.8% and 5.3% respectively.
On the surface, these figures are good news, with this quarter’s figures following the recent downward trend in overall corporate insolvency numbers since last year. However, when compared to the previous quarter – quarter 2 2014 – Receiverships, Administrations and CVAs were all up, whilst Company Liquidations were down much less than 12 months ago, and most of the different types of corporate insolvency procedures have yet to fall consistently to below pre-recession figures.
When looking at the actual numbers, we see that 4,179 companies still went into some form of corporate insolvency procedure during quarter 3 2014 and many commentators believe that there remain a large number of companies that are doing little more than just surviving as a result of the last recession. This means it might not take much to tip some of these companies into corporate insolvency and reverse the current downward trend.
There are many reasons why businesses go into some form of corporate insolvency, and almost all of them are the result of a financial difficulty or financial consequence. These figures demonstrate that an improving economy is no guarantee of on-going improvements in the number of businesses going in to corporate insolvency, which is where NDP come in.
When it comes to corporate insolvency there are always more options and potential solutions to consider than you might think, and we are here to help you and your company find those solutions, many of which do not involve formal insolvency.
If you or your business has a problem relating to company insolvency, call us now on (0121) 200 7040 for your FREE initial discussion on the phone or over a coffee, or contact us online.