The Insolvency Service has today released the insolvency statistics for Quarter 1 – January to March 2016.
The stats explained:
Since March 2014 (Quarter 1), there has been a general downward trend in the number of insolvencies, seeing them reach their lowest point since before the beginning of the recession. The low, at the end of 2015, was positive news for many, who have been able to progress with expansion plans and enjoy increased profitability, with lower risk of client insolvency. Despite this, the latest stats, ending March 2016, have shown a marginal increase in insolvencies again, as an estimated total of 3,694 companies became insolvent between January and March 2016; news is not all bad however, as the insolvency level remains 3.6% lower than January-March 2015.
Other key findings from the Q1 2016 report, include notification of an increase in compulsory liquidations, for the first time in a year, with a total of 804 companies issued with compulsory winding-up orders. This represents a 36% increase since Q4 2015 (October-December) but again, is still lower than Q1 2015. It is believed that this is the primary factor behind the small uplift in total company insolvencies, and it is hoped that this will be a temporary trend.
The full report can be found on the Office of National Statistics website here: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/519466/Q1_2016_statistics_release_-_web.pdf