0800 644 6080
Call FREE from Landline and Mobile
Est. 1989

Company Administrations Up to Highest Level in 5 Years

Written by: Keith Tully

Reviewed: Saturday 27th April, 2019

Company Administrations Up to Highest Level in 5 YearsThe number of company administrations recorded in England and Wales during the first three months of 2019 was up sharply as compared with the previous quarter and the first three months of last year.

In fact, the latest official figures from the Insolvency Service show that there were more administration cases in Q1 this year than during any comparable period since early 2014.

A total of 451 administration cases were recorded between January and the end of March this year, which represents a 21.8 per cent jump compared to the final three months of 2018.

When combined with the figures for liquidations and creditors voluntary arrangements (CVAs), the underlying number of corporate insolvencies recorded in the first quarter of this year was 4,187, which is 6.2 per cent higher than the figure for Q4 2018.

“Today’s underlying insolvency figures – the highest first quarter figures since 2014 – reflect the impact of stuttering consumer confidence and, to a degree, Brexit uncertainty on the business community,” said Stuart Frith, president of the insolvency and restructuring trade body R3.

“The factors which have been pushing insolvencies up over the last year or so haven’t gone away. Consumer confidence is low and consumers’ spending power is much diminished.” 

Mr Frith pointed out that the first quarter of any year is often when retailers or consumer-facing companies will enter insolvency if they fall short of their sales targets in the run up to and during the festive period.

“The pre-Christmas period can be make or break, and Christmas 2018 was particularly tough,” he said.

The R3 president also pointed out that the first three months of 2019 was a period of particularly acute uncertainty for British businesses with regard to the UK’s position within the European Union.

Mike Cherry from the Federation of Small Businesses (FSB) has said that the latest figures on corporate insolvencies reflect the “immense strain that small business are currently under”.

Small companies across the country are faced with “rising employment costs, unfair business rates as well as significant uncertainty as a result of the Brexit process,” he said.

Keith Tully

Author
Keith Tully
Partner

Join Keith Tully on Linked In Join Keith Tully on Google Plus Follow Keith Tully on Twitter

Keith has been involved in Business Rescue since 1992, during which time he’s worked for both independent and national firms. His specialties include company restructuring matters and negotiating with HMRC on his clients behalf.

Meet our Team of Experts

Who we help

  • Company Directors
  • Finance Directors
  • Sole Traders
  • Accountants
  • Small Businesses
  • Large Businesses
  • Partnerships

Contact our team

Jonathan Munnery
Gillian Sayburn
Julie Palmer
Processing...
or Find your Nearest Office

Here at Real Business Rescue we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See PRIVACY POLICY

Business Rescue Advice for Directors

Free Guide for Limited Company Directors

Business Rescue Advice for Directors

  • How to manage company cash flow problems
  • Advice on dealing with HMRC
  • Understanding rescue and closure options
  • And much more...
Free Guide Download
Desling with your Insolvent Clients

Business Rescue Guide for Accountants

Dealing with your Insolvent Clients

  • Helping you advise insolvent clients
  • Spotting signs of client distress
  • Exploring business rescue options
  • And much more...
Free Guide Download

Our numbers speak for themselves

75
Number of UK Offices
30000
Directors Helped
70+
Licensed Insolvency Practitioners