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New figures from the Insolvency Service show the first quarter of 2019 had the second highest underlying level of insolvencies in any quarter since Q1 2014.
According to the figures, there were 4,187 total underlying company insolvencies in England and Wales in Q1 2019, a rise of 6.3% on the last quarter and up 5.1% on the same quarter last year.
This rise was driven by increases in creditors voluntary liquidations (CVL) which increased by 6.2% compared to Q4 2018 and administrations which were up 21.8%. CVAs also increased by 43.1%. Compulsory liquidations fell in Q1 2019 by 2.7%.
In Q1 2019 there were 451 administrations, 21.8% higher than Q4 2018; this was the highest number of administrations since Q1 2014. Compared to the same period last year, there were 26.8% more administrations.
Furthermore, there were 93 CVAs in Q1 2019, a 43.1% increase on Q4 2018.
The wholesale and retail trade as well as the repair of vehicles industry grouping saw the largest increase in underlying insolvencies, with 67 extra cases – or 9% rise – compared to the 12 months ending Q4 2018.
Graham Bushby, head of RSM Restructuring Advisory LLP said: “The direction of travel for company failures is unmistakably on the rise. Company administrations rose to their highest quarterly level in five years as Brexit related uncertainty continued to take its toll.”
