Corporate insolvencies continue to fall
2015 continues to be a big year for the drop in corporate insolvencies in England and Wales, with just under 4,000 companies entering formal insolvency in this year’s second quarter.
Statistics from the Insolvency Service show that exact figure to be 3,908, down 144 from the 4,052 companies who entered formal insolvency in the first quarter of 2015 between January and March, a fall of 2.9%, and 7.5% lower than the same period of April to June in 2014. It also means that insolvency practitioners are continuing to see fewer formal appointments.
The catalyst for this decrease was believed to be the 15% drop from the first quarter of 2015 in companies that were subject to a compulsory winding-up order. The 765 total was also a huge 22% less than the same quarter in 2014, and statistics from the research also highlighted that the 12-month liquidation rate ending in 2015’s second quarter was the lowest since comparable records began in 1984.
This year on year fall in all aspects should come as no surprise to those within the industry, however, who are fully aware that the number of company and corporate insolvencies has been on a downward trend since 2013, which explains why the 7.5% was a predictable figure for many when approaching the end of this year’s second quarter.
It is predicted that this trend will continue in the short term as many companies that potentially faced insolvency managed to sustain themselves amidst the financial crisis through alternative, and often innovative, methods of funding. But there are also those that believe some of these funding efforts are simply delaying the inevitable.
Other notable findings from the latest research included more decreases in company voluntary arrangements and administrations, but an increase in the official figures of receivership appointments.
If your company is affected by corporate insolvency and potential liquidation, get in touch with Financial Saviour today. We are experts in all aspects of corporate turnaround and financial restructuring to ultimately ensure that your business is part of the thousands that keep corporate insolvencies on their current decreasing trend.