Company insolvency rate rises in Q3 2016

Published on November 11, 2016 by Crawfords Accounting

The company insolvency rate in Q3 2016 was slightly higher than in the previous quarter and over the previous year, according to newly published figures from the Insolvency Service.

Data for the period from July to September was published at the end of October, showing an increase in the company insolvency rate and a fifth consecutive quarterly increase in personal insolvency, driven by a rise in IVAs.

In Q3, 3,633 company insolvencies were recorded, representing an increase of 2.2% over the previous quarter and 1.1% over Q3 2015.

But the Insolvency Service adds that the past year has seen company insolvencies stay fairly flat, off the back of a steady decrease since mid-2011.

The overall pattern of corporate insolvency has been downwards since the peak of 2008-09, when the recession was at its worst with over 6,000 insolvencies per quarter.

From Q3 2009 there was a steep decrease in corporate insolvency, which levelled out towards the end of 2010 at just under 5,000 per quarter.

A slight increase in 2011 took the quarterly totals back over 5,000 corporate insolvencies, but this level has not been seen from 2012 onwards.

The total for Q3 was driven by a rise in creditors’ voluntary liquidations, up 5.2% over the previous quarter to 2,569, while compulsory liquidations fell 4.5% to 632.

Both of these figures are higher than in Q3 2015 – by 2.2% and 2.4% respectively – although again the trend has been quite flat over the past year or two.

Just over 350 firms entered administration, up 3.5% quarterly but only 0.6% annually, while 75 entered into company voluntary arrangements and five went into receivership.

The slight upturn in corporate insolvencies is a concern for any companies operating close to their financial limits already – if you are worried about your future viability, we would urge you to seek prompt administration advice for the best chance to turn things around.

We have received an excellent service from the team at RPG for well over 20 years. We particularly appreciate RPG's real interest in our company and suggestions for improvements. The service RPG provides goes well beyond what we could expect.  The attention to detail and the prompt, professional service the team provides means that we are reassured that should we require urgent or unusual advice, the team will provide it. We would have no hesitation in recommending RPG.

Margaret Peasegood

Executive Chairman - SheffProp

I would like to thank RPG for your unbelievable help, assistance and friendship for over 40 years. Nothing has ever been too much trouble. Words alone are insufficient, and I think that the same would apply to my former colleagues and my family who have also come to rely on your advice and guidance.

Neville Johnson

Founder - Neville Johnson Offices

We have worked with RPG for many years, for good reason. They are not only extremely knowledge but they really take the time to get to know you as customers and also as people. This really makes a difference, as whilst it is of course important that you receive great service, which we do, it’s also essential to work with professionals who you can really trust and who go out of their way to know your business as well as you do, giving ultimate comfort that you are all striving towards the same goals. I cannot recommend them highly enough.

Jennie Johnson MBE

Kids Allowed

“RPG have always been our first point of call for advice on accounting, tax and financial regulatory matters and indeed have become an additional sounding board for both myself and my colleagues on strategic matters. The consistently high quality and timely advice they provide is very important to us.”

Gareth Rowe

Chief Financial Officer - ProofID

“As a family business we have been using Royce Peeling Green as our accountants for over 25 years. We have always been impressed with their expertise and depth of knowledge in all financial areas required to help run our business. There is an obvious understanding and trust between the two companies which leads to proactive approach to guide us with short and long-term financial planning. We have found everyone at Royce Peeling Green to be very approachable providing us with the reassurance that they will always provide a professional response in a timely manner.”

David Harrabin

Managing Director - Manchester Slate Ltd

RPG have now acted for our various companies for over 15 years. Their advice and commercial attitude in dealing with Tax, Audit and general businesses matters has always been of high quality and queries dealt with promptly. The team at RPG are experts in their field, they understand the SME market place well. They have been involved in all our corporate transactions, from setting up of businesses, ongoing support of our management teams through to being part of the team that negotiated the successful sale of a group company.

Jonathan Hamburger

Genesis Group International

We have received a first rate service from RPG over many years. We appreciate their attention to detail and the timely, professional and pro-active advice they provide. We would have no hesitation in recommending the team at RPG.

Stephen Rector

Managing Director – Ribble Packaging Limited