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© tom schmucker dreamstime.com Business | March 15, 2016

Insolvencies figures down for UK

Company insolvencies in the UK were at the lowest level since 1989. An estimated total of 14'629 companies entered into insolvency in 2015, which was 10 percent lower than the total in 2014 and the lowest annual total since 1989 (when 10'456 companies entered insolvency).
England & Wales

In the fourth quarter of 2015, there were an estimated 3'067 company liquidations – a 2 percent decrease on the previous quarter and 9.6 percent less than in Q4/2014. In 2015 as a whole there were an estimated 12'855 liquidations, a 9.2 percent decrease compared to 2014.

There were an estimated 2'484 creditors’ voluntary liquidations (CVLs) in Q4/2015, a decrease of 1.2 percent on the last quarter, and 3.0 percent lower than the same period a year ago. In 2015 as a whole there were an estimated 9'981 CVLs, which was 4 percent lower than the total in 2014.

In October to December 2015 there were 583 compulsory liquidations, a decrease of 5 percent on the previous quarter, and down 30 percent compared with the same quarter in 2014. The number of compulsory liquidations was at the lowest quarterly level since Q3/1989. The annual total of compulsory liquidations in 2015 was 2'874 – 23.5 percent lower than 2014 and the lowest annual total since 1981.


© The Insolvency Service - www.gov.uk
Scotland

In the fourth quarter of 2015, there were an estimated 260 total company insolvencies, an increase of 20.4 percent compared to Q4/2014. Of these, 232 were company liquidations – a 23.4 percent increase on the same quarter of 2014. Liquidations were fairly stable until 2009, followed by a generally increasing trend until a period of rapid decrease between Q2/2012 and Q1/2013.

The total number of company liquidations in Scotland is driven by the number of compulsory cases. This is in contrast to England and Wales, where the number of creditors’ voluntary liquidations (CVLs) account for the majority of company liquidations. This difference may be because in England and Wales, the Insolvency Service manages the initial stage of case administration for all compulsory liquidations, for which a fee is charged.

There were an estimated 79 CVLs. The number of CVLs has remained largely stable, with between 50 and 100 cases in each quarter since 2010.

There were an estimated 28 other company insolvency procedures in the third quarter of 2015, 24 of which were administrations, two were company voluntary arrangements and two were receivership appointments. In 2015 as a whole there were an estimated 952 total new company insolvencies, 1.1 percent lower than 2014.

Northern Ireland

There were an estimated 109 company insolvencies in Northern Ireland in Q4 2015, 4.4 percent less than the same quarter in 2014. Of these, 72 were compulsory liquidations (down 4 percent on the same quarter last year), and an estimated 16 were creditors’ voluntary liquidations (CVLs, down 15.8 percent).

The number of CVLs in Northern Ireland increased between 2007 and 2010, and has been on a decreasing trend since early 2014. The number of compulsory liquidations has been more volatile.

There were an estimated 12 administrations and nine company voluntary arrangements in Q4 2015.

In 2015 as a whole there were an estimated 371 new company insolvencies, which was 2.4 percent lower than the total in 2014. This consisted of 223 compulsory liquidations (up 0.9 percent), 75 creditors’ voluntary liquidations (down 16.7 percent), 35 administrations (up 20.7 percent), 35 company voluntary arrangements (down 5.4 percent) and three receiverships (unchanged).
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