Company insolvencies increase to the highest level since 2014 - Resolve Group UK

Company insolvencies increase to the highest level since 2014

Resolve Group UK

Company insolvencies increase to the highest level since 2014

According to official Government statistics released on 29th January 2019 the underlying number of company insolvencies in England and Wales increased in 2018 to the highest level since 2014.

Excluding bulk insolvencies, there were 16,090 insolvencies in 2018, a 10.0% increase on 2017.

CVL’s remained the most common form of company insolvency but all types increased in 2018 compared with 2017, except administrative receivership.

In the 12 months ended  2018, one in 221 (0.45%) of all active companies entered liquidation.

The construction industry had the highest number of insolvencies in the 12 months ended 2018, followed by the wholesale and retail trade & repair of vehicles industrial groupings.

Resolve Group UK

Personal insolvencies reach 7 year high in 2018

Personal insolvencies jumped to a seven year high in 2018. The number of individual people who became insolvent in England and Wales in 2018 was 115,299, a 16.2% rise on 2017 and the highest annual level of individual insolvencies since 2011.

In total there were 71,034 IVAs in 2018, an increase of 19.9% on 2017, and the highest annual level recorded.

A total of one in 401 adults became insolvent in 2018, up from one in 466 in 2017.

This significant rise in both company and personal insolvencies demonstrates that the increasingly difficult environment for businesses continues to have an effect.  The increase in personal insolvencies, made worse by the increasingly difficult credit situation, also has a detrimental  and domino effect on businesses as consumer confidence and demand weakens and spending is cut back.

For companies the ongoing lack of certainty over Brexit continues to cause issues, delaying investment decisions, and in some cases increasing costs and reducing cash-flow as a result of stockpiling and storage. Rising overheads from sterling fluctuations, increased employment costs and the continued challenges with business rates are all having a detrimental effect in many sectors which becomes further exacerbated as the insolvency of one company has a knock-on effect on others in its supply chain.

If in doubt ReSolve recommends that professional advice should be sought to help manage financial problems or establish long term business plans. We believe that early action is the key to avoiding or surviving financial difficulties. The difference between those that survive and thrive and those that fail is how well they manage difficulties.

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