On Friday, the latest UK Insolvency Statistics for Q2 2018 (April to June) were released. Overall, it was found that the number of company insolvencies has fallen 12.4% compared to 2018 Q1 but has risen 12% compared to the same period last year. This shows fewer company insolvencies, administrations and underlying Creditors Voluntary Liquidations.
The statistics show that 70% (2731) of all company insolvencies were in the form of Creditor Voluntary Liquidations, which had fallen by 0.5% compared to Q1 2018, but has risen 14.6% from 2017 Q2 figures. Likewise, Compulsory Liquidations were found to have risen to 752 – a rise of 14.6% compared to 2017 Q2 and a decrease of 0.4% compared to Q1 2018.
The statistics are broken down by Industry and the most company insolvencies (excluding bulk insolvencies) in the 12 months ending this period, were within the construction industry, followed by wholesale and retail trade.
The statistics reveal how there were 94 Company Voluntary Arrangements (CVA) in the quarter, down 7.8% from Q1, but up 10.6% when comparing to last years statistics. 341 administrations were recorded.
CVAs have become popular in recent month's with high profile retail chains using it as a mechanism to cut costs.
In terms of Individual Insolvency statistics, these rose in Q2 2018, where they the figures are now found at their highest since Q1 of 2012. Compared to the same period last year, there was a 27% rise, and compared to the previous quarter, a 4.4% rise. This comes from an increase in Individual Voluntary Arrangements and Debt Relief Orders. The benefit cuts, high inflation and sparse wage rises can explain this.