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Q2 2022: Company Insolvency Statistics

2 August 2022

Q2 2022: Company Insolvency Statistics

The company insolvency statistics for the second quarter of 2022 (April to June) have been released, and so we discuss the findings here.

Company Insolvency in England and Wales

Q2 2022 saw 5,629 company insolvencies which is 13% higher than the amount registered in the previous quarter and 81% higher than that during the same quarter of 2021. The total number of registered company insolvencies in this quarter, was the highest since Q3 2009.

In terms of procedures:

  • Creditors voluntary liquidations accounted for 87% of cases (up by 13% from 2022 Q1 and 74% from 2021 Q2) - in total, 4,908 recorded in this quarter
  • Compulsory liquidations accounted for 7% of cases (up by 9% from 2022 Q1 and 261% from 2021 Q2) - in total, 368 recorded in this quarter
  • Administrations accounted for 6% of cases (up by 18% from 2022 Q1 and 95% from 2021 Q2) - in total,320 recorded in this quarter
  • Company voluntary arrangements accounted for 1% of cases (up by 28% compared to both 2022 Q1 and 2021 Q2) - in total, 32 recorded in this quarter
  • There was just one receivership appointment.

As has been noticed throughout, receiverships are rare these days. CVLs saw their highest amount in the time series since it began in 1960. It is likely that the trends are due to the end of the government measures put in place to support small businesses and individuals during the COVID-19 pandemic.

It should be reflected on that there were 39 companies (3 more than in Q1 2022) obtaining a moratorium and 12  (2 more than in Q1 2022) companies having restructuring plans registered at Companies House, between 26 June 2020 and 30 June 2022.

Liquidation Rates per 10,000 active companies

In the four quarters ending Q2 2022, the liquidation rate for companies was 43.9 per 10,000 active companies in England and Wales (1 in 228 companies liquidated in the 12 months ending Q2 2022). This rate is more than the same quarter last year when the rate was 26.1 per 10,000 active companies. When looking at the rate from Q1 2021, it is up by 17.8 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 2022 were:

  • Construction – 3,665 insolvencies
  • Wholesale and Retail Trade; Repair of vehicles – 2,544 insolvencies 
  • Accommodation – 2,206 insolvencies

Such results match that of the same period the year before, with these three sectors experiencing the most insolvencies too. For all industries, an increase was seen in insolvency numbers in the 12 months ending Q2 2022 compared to the period ending Q2 2021. 

Company Insolvencies in Scotland 

In Scotland, there were 261 company insolvencies recorded for Q2 2022. This was 58% higher than in the same period of 2021. Statistics included 44 compulsory liquidations, 208 CVLs, 8 administrations and 1 CVA. There were no receiverships. 

The liquidation rate for the 12 months ending Q2 2022 was 41.9 per 10,000 active companies. This was up by 19 compared to the same period the year before.

Company Insolvencies in Northern Ireland

Northern Ireland saw 58 company insolvencies in Q2 2022 which was 2 and a half times more than in Q2 2021. The statistics consist of 33 CVLs, 20 compulsory liquidations, 2 administrations and 3 CVAs. There were no receiverships. 

The liquidation rate for the 12 months ending Q2 2022 was 23.6 per 10,000 active companies in Northern Ireland. This was an increase of 11.7 from in the same period the year before.

The full report and findings can be seen here.

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