The company insolvency statistics for the second quarter of 2021 (April to June) have been released, and so we discuss the findings here.
Company Insolvency in England and Wales
Q2 2021 saw 3,116 company insolvencies which is 31% higher than the amount registered in the previous quarter and 4% higher than that during the same quarter of 2020.
In terms of procedures:
- Creditors voluntary liquidations accounted for 90% of cases (up by 39% from 2021 Q1 and 20% from 2020 Q2)
- Administrations accounted for 5% of cases (down by 10% from 2021 Q1 and 58% from 2020 Q2)
- Compulsory liquidations accounted for 3% of cases (down by 11% from 2021 Q1 and 50% from 2020 Q2)
- Company voluntary arrangements accounted for 1% of cases (down by 32% from 2021 Q1 and 47% from 2020 Q2)
- There was just one receivership appointment.
This shows that overall, compared to the last quarter and the same last year, all procedures decreased other than CVLs.
Liquidation Rates per 10,000 active companies
In the four quarters ending Q2 2021, the liquidation rate for companies was 25.9 per 10,000 active companies in England and Wales (1 in 386 companies liquidated in the 12 months ending Q2 2021). This rate is lower than the same quarter last year when the rate was 36.9 per 10,000 active companies. When looking at the rate from Q1 2021, it is up by 0.6 per 10,000 active companies.
Company Insolvencies by Industry
From analysing SIC codes of companies and the insolvency statistics, it has been shown that the industries experiencing the highest amount of insolvencies in the 12 months ending Q2 2021 were:
- Construction – 1,801 insolvencies
- Accommodation – 1,474 insolvencies
- Wholesale and Retail Trade; Repair of vehicles – 1,366 insolvencies
Such results match that of the same period the year before, with these three sectors experiencing the most insolvencies too. For all sectors, results were similar.
Company Insolvencies in Scotland
In Scotland, there were 165 company insolvencies recorded for Q2 2021. This was 32% higher than in the same period of 2020. Statistics included 31 compulsory liquidations, 126 CVLs, 7 administrations and 1 CVA. There were no receiverships.
The liquidation rate for the 12 months ending Q2 2021 was 22.9 per 10,000 active companies. This was down by 15.5 compared to the same period the year before.
Company Insolvencies in Northern Ireland
Northern Ireland saw 23 company insolvencies in Q2 2021which was 35% more than in Q2 2020. The statistics consist of 17 CVLs, 5 compulsory liquidations and 1 administration. There was no CVAs or receiverships.
The liquidation rate for the 12 months ending Q2 2021 was 11.9 per 10,000 active companies in Northern Ireland. This was a decrease of 31 from in the same period the year before.
The full report and findings can be seen here.