The latest figures from Quarter one of 2015 have been released from the UK Insolvency Service and show that both corporate and personal insolvency rates are on a decreasing trajectory.
With total UK business insolvencies at the lowest level since the end of 2007 and individual insolvencies dropping to the lowest they have been since mid-2005. The decrease in corporate insolvency rates was mainly driven by a decrease in compulsory liquidations. A total of 3,908 companies entered into formal insolvency in Q2 2015, which was 2.9% less than Q1 2015 and 7.5% lower than Q2 2014.
BDO business restructuring partner Ian Gould remains cautious:
“While corporate insolvencies will remain low in the short term, paradoxically we may see an increase in business failures as the economy returns to strength.”
Ian’s view is supported by analysis from FRP Advisory which illustrates the large number of businesses entering into administration during the second half of 2015 is become completely constant as the year progresses, a great thing for new businesses.