Business insolvencies remain steady - what does this tell us?

28 Apr 2017

The latest insolvency statistics released today from the Insolvency Service have shown that company insolvencies fell during the first quarter of 2017. But, with unusually high levels in early 2016, these figures have actually revealed a rise in company insolvency for the third quarter in a row.

Company insolvencies in Q1 of 2017 were an estimated 3,967 – of which Creditors Voluntary Liquidations (CVLs) accounted for 68%. However, this figure is a decrease of 29.1% compared to Q4 at the end of last year.  But we must remember  that last year's figures were inflated by the 1,796 personal service companies (PSCs) entering CVL in Q4 2016.

If you discount this 1,796 from the figures, then the underlying figure for company insolvencies was broadly unchanged compared with the previous year.

There are perhaps no particular 'tea leaves' that can be read from these latest figures as to what may be coming, and even if there were, the Brexit 'unknowns' probably render such predictions folly.

There are also other clouds building, such as increasing inflation and high consumer debt which, whilst ostensibly showing as higher personal insolvency figures, will of course impact on the fortunes of companies if their customer base is affected and consumer confidence starts to wobble.

Further reading

Protecting your brand in post-Brexit UK

Blog, News & PR
Now the UK has officially left the EU, it's more important than ever for UK businesses to look after their brands. Robert Ganpatsingh explains what to consider
Read more Read

Lockdown 3.0: no exception, no eviction

Blog, Legal Updates
Hannah Joad looks at new regulations extending residential tenants’ protection from eviction.
Read more Read

Supporting employees through the next lockdown

Managing your employees through uncertainty and equipping them to thrive, remain engaged and feel part of a team environment, must be a HR priority for 2021.
Read more Read

Remote working and home security

Blog, News & PR
With a large proportion of the workforce now working from home, security arrangements for home workers need to be addressed - Robert Ganpatsingh explains
Read more Read
  • Brighton Office

    1 Jubilee Street


    East Sussex

    BN1 1GE

  • Gatwick Office

    Griffin House

    135 High Street


    West Sussex

    RH10 1DQ

  • Guildford Office

    Wonersh House

    The Guildway

    Old Portsmouth Road



    GU3 1LR

  • Horsham Office

    Ridgeland House

    15 Carfax


    West Sussex

    RH12 1DY

  • London Office

    6 New Street Square

    New Fetter Lane


    EC4A 3BF

  • Get in touch