4 August 2017: The latest quarterly insolvency statistics were released on 28 July 2017 and indicate that the underlying number of company insolvencies fell to the lowest level since comparable records began in 2000.
Personal insolvencies also decreased, driven primarily by a decrease in Individual Voluntary Arrangements (“IVA”). The actual number of corporate failures was up significantly in both Q4 2016 and Q2 2017 due to connected personal service company failures of 1,796 and 1,131 respectively. Taking out these exceptional items the news for UK PLC appears to be positive.
Notwithstanding the “facts”, the overall reaction from “the man on the street” appears to be one of surprise; they would have predicted that insolvency professionals are all busy in light of post Brexit/Trump/Strong and Stable elections of the last 15 months and the uncertainty that has arisen from these.
BRI Business Recovery and Insolvency continue to be overseeing as many solvent cases as insolvent ones and the gestation period in all matters is growing. The long view is that currently fewer than 0.5% of all companies are ending up in an insolvency process during each year, whereas in 1993, when the number of companies was fewer than half the number registered today, the rate was in excess of 2.5%.
As always, the earlier advice is sought, the greater the likely number of opportunities that will be available. Please, therefore, do not hesitate to contact any of the BRI Management Team if you or your clients need advice or assistance.