Company insolvency statistics - Q1 2022

The January to March 2022 (Q1) company insolvency stats for England and Wales have been published by The Insolvency Service, together with related figures for Scotland and Northern Ireland.

Company insolvency statistics for England and Wales – Q1 2022

It should be noted that unlike monthly insolvency statistics, quarterly statistics are seasonally adjusted to account for seasonal variation in insolvencies across the year and allow for comparison to the most recent period within years.

After seasonal adjustment (where applicable), there were a total of 4,896 company insolvencies in England and Wales in Q1 2022, including:

4,274 creditors’ voluntary liquidations (CVLs)
331 compulsory liquidations
266 administrations
25 company voluntary arrangements (CVAs)
0 receiverships

Total company insolvencies in Q1 2022 increased by 168 per cent from Q4 2021 and by 112 per cent from the same quarter in the previous year.

The overall increase in company insolvencies in Q1 2022 was driven by a rise in CVLs, which accounted for 87 per cent of all company insolvencies. These increased by 3 per cent from Q4 2021 and by over double (117 per cent) than during the same quarter last year. The number of CVLs was the highest quarterly number since the series began in 1960.

Between 26 June 2020 and 31 March 2022, 36 companies obtained a moratorium and 10 companies had a restructuring plan registered at Companies House, procedures created by Created by the Corporate Insolvency and Governance Act 2020.

Liquidation rate statistics for England and Wales – Q1 2022

In the 12 months ending Q1 2022:

1 in 257 companies were liquidated
the company liquidation rate was 38.9 per 10,000 active companies in England and Wales
the company liquidation rate was higher than in both the 12 months ending Q4 2021 and the same quarter a year ago

Unlike the absolute number of liquidations over a period, the liquidation rate indicates the probability of a company entering liquidation in the previous four quarters. In general, periods of economic growth result in liquidation rates decreasing.

Industry sector insolvency findings for England and Wales – Q1 2022

In the 12 months ending Q1 2022, the construction industry had the highest number of new underlying company insolvencies (3,213), 19 per cent of cases with industry captured.

Elsewhere the wholesale and retail trade; repair of vehicles (2,100) and accommodation and food services activities (1,977) groupings had the second and third highest number of new underlying company insolvencies in the 12 months ending Q1 2022.

Scotland company insolvency statistics – Q1 2022

The Accountant in Bankruptcy, Scotland’s Insolvency Service, administers company insolvency in Scotland. They reported that in Q1 2022, there were 210 company insolvencies, more than double the number (131 per cent higher) in the same quarter of 2021. Of the total company insolvencies in Scotland, there were:

33 compulsory liquidations
165 CVLs
12 administrations
0 CVAs
0 receiverships

Due to administrative differences, most company liquidations in Scotland are compulsory liquidations. This contrasts with England and Wales where creditors’ voluntary liquidations (CVLs) account for most company liquidations. Figures in Scotland are also not seasonally adjusted.

Northern Ireland company insolvency statistics – Q1 2022

In Northern Ireland in Q1 2022, there were 56 company insolvencies, nearly three times higher (an increase of 273 per cent) than in the same quarter of 2021. Of the total company insolvencies in Northern Ireland, there were:

19 compulsory liquidations
28 CVLs
3 CVAs
5 administrations
1 administrative receivership

Please note, the figures for Northern Ireland are not seasonally-adjusted.

Where can I see insolvency notices in The Gazette?

The Gazette is the primary source of both corporate insolvency and personal insolvency information in the UK and publishes this information in the form of insolvency notices, allowing transparency for the public, the credit industry and concerned individuals to quantify risk and inform creditors. You can view all corporate and personal insolvency notices on The Gazette website.

The Gazette also provides a data service which gives access to official intelligence on all UK businesses, corporate and personal insolvencies. Benefits of The Gazette’s data service include:

Bespoke reports - tailored around your specific business
Geo-targeted editions - available for specific geographical targeting (National, London, Belfast, Edinburgh)
Custom filters - specific custom attributes (company number, notice type, key terms)
Data at regular intervals - delivered at a rate to match your business needs (daily, weekly, monthly)

For more information on The Gazette’s data service, contact the team on 01603 985949 or email data@thegazette.co.uk.

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