Walsall 01922 722205 • Birmingham 0121 371 9231 • Bournemouth 01202 355348 • Cannock 01543 401377 • Hereford 01432 291013 • Redditch 01527 531350 Rugeley 01889 529273 • Shrewsbury 01743 491239 • Stafford 01785 318768 • Stoke 01782 580886 • Tamworth 01827 849961 • Wolverhampton 01902 489657 G&K Q3 2018 CORPORATE STATS ARE OUT! The majority of company insolvencies were creditors’ voluntary liquidations (CVLs) A total of 4,308 companies entered insolvency in Q3 2018, consisting of 3,083 creditors’ voluntary liquidations (71.6% of all insolvencies), 741 compulsory liquidations (17.2%) and 484 other insolvencies (11.2%). Company insolvencies increased this quarter Total underlying company insolvencies increased by 8.9% compared to Q2 2018. When compared to the same quarter last year, the underlying number of company insolvencies increased by 19.3%. Driven by an increase in CVL The underlying number of CVLs in Q3 2018 was 3,083, an increase of 20.7% on Q2 2018, and the highest quarterly level since Q1 2012. Compulsory liquidations decreased compared to Q2 2018 The number of compulsory liquidations in Q3 2018 fell by 2.5% on the previous quarter, but increased by 11.1% compared to Q3 2017. Company insolvency by industry The construction industry had the highest number of insolvencies in the 12 months ending Q3 2018, followed by the wholesale and retail trade & repair of vehicles industrial grouping. Q3 2018 PERSONAL STATS ARE OUT! The majority of individual insolvencies were IVAs There were 25,151 individual insolvencies in Q3 2018, 55.8% of which were IVAs, 27.7% were debt relief orders and 16.5% were bankruptcies. Individual insolvencies decreased this quarter Total individual insolvencies in Q3 2018 were 10.5% lower than in the previous quarter and 2.5% lower than in the same quarter the previous year. Individual Voluntary Arrangements (IVAs) fell from a record high The number of Individual Voluntary Arrangements in Q3 2018 fell 18.0% compared with a record high in Q2 2018. Bankruptcies increased this quarter Bankruptcies increased by 1.7% on the quarter and by 12.0% on the same quarter in 2017. Debt relief orders (DROs) increased this quarter DROs increased by 0.7% on the quarter and by 11.3% on the same quarter in 2017. The insolvency rate decreased In the 12 months ending Q3 2018, the rate of insolvency was 23.0 per 10,000 adults (1 in 434 adults). G&K Contd. from page 2 While zombie companies are still trading they are taking market share from viable companies which should be growing and boosting the economy. According to R3 Over one in ten (11%) UK companies is just paying the interest on its debts, rather than repaying the debt itself, according to new research from insolvency and restructuring trade body R3. R3’s research, based on a survey of 1,200 companies by research firm BVA BDRC, also found that other signs of acute business struggles are relatively widespread. One in six (16%) businesses are having to negotiate payment terms with creditors; one in ten (12%) are struggling to pay their debts when they fall due; and 8% would be unable to repay their debts if interest rates were to increase by a small amount. Tim Corfield says “so called Zombie companies have been around now for years. The whole environment is so different and these companies just struggle on and distort the market place – why the directors carry on, I don’t know!” G&K