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|Insolvency Statistics – January to March 2016 (Q1 2016)|
|Friday, 29 April 2016|
This statistics release contains the latest data on company insolvency (companies which are unable to pay debts and enter liquidation, or enter administration or other company rescue process) and individual insolvency (people who are unable to pay debts and enter formal procedures).
Statistics are presented separately for England and Wales, Scotland, and Northern Ireland because of differences in legislation and policy.
Total company Insolvencies increased for the first time since Q1 2014, but were still lower than Q1 2015.
This increase was mainly driven by an increase in compulsory liquidations, which were at the highest level since Q1 2015
Total individual insolvencies increased slightly compared to last quarter, but were lower compared to the same period a year ago.
There was an increase in debt relief orders, which resulted from a change to the eligibility criteria.
Key findings for Q1 2016
Company insolvencies increased for the first time since Q1 2014 - An estimated total of 3,694 companies entered insolvency in Q1 2016, which was 5.4% more than Q4 2015 but 3.6% lower than Q1 2015.
Compulsory liquidations increased for the first time since Q1 2015 - A total of 804 companies were subject to a compulsory winding-up order in Q1 2016, a 36.0% increase on the previous quarter but 11.5% lower than Q1 2015. This was the main driver of the increase in total company insolvencies.
Creditors’ voluntary liquidations remained fairly stable - An estimated 2,515 companies entered creditors’ voluntary liquidation in Q1 2016, a 0.8% increase on the previous quarter and 0.6% higher compared to the same period in 2015.
CVAs at their lowest level since Q1 1998 and administrations lowest level since Q4 2003 - There were an estimated 301 administrations in Q1 2016, a decrease of 11.1% compared to the previous quarter and 10.9% lower than the same quarter in 2015. There were an estimated 75 CVAs in Q1 2016, a decrease of 7.4% on the previous quarter and 12.8% lower than Q1 2015. There were an estimated zero administrative receiverships.
The liquidation rate was at its lowest level since comparable records began - The estimated liquidation rate in the 12 months ending Q1 2016 was 0.42% of active companies, the lowest level since comparable records began in Q4 1984.
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