Insolvency stats released show further decrease in corporate insolvencies but the continued rise of the Individual Voluntary Arrangement (IVA).
The insolvency service issued it’s quarterly and annual comparison of insolvency data today with the following key points:
– Corporate liquidations are down 15.1% on the same quarter last year (blended reduction of 18.1% in CVL’s and 6.3% in compulsory winding up orders)
– 1 in 177 active companies went into liquidation in the year to 30 June 2014
– Company Administrations are down a staggering 19.2% compared to the previous quarter
– CVA’s stay static at only 142 throughout the entire country in the three months to 30 June 2014
That is broadly very positive data for the UK corporate and reflects an upturn in both the economy and general confidence. There do not currently appear to be any real signs of the cash flow crisis that has occurred on the back of previous recessions as a result of over trading.
Personal insolvencies were however up 5.1% on the previous quarter with a continuing movement away from bankruptcy (down 15.9% on the same quarter last year) towards the rescue culture led IVA (up 20.3% on the same quarter last year). Quite a sobering thought that 1 in 440 individuals became insolvent in the last year.
The stats above appear to echo what we are seeing on the ground in Suffolk, Cambridgeshire, Essex and East Anglia generally. Most companies are “coping” but there are still significant cash flow pressures out there.