Company liquidations in Q1 up 56% yr on yr

vivatifosi

Stats are for England and Wales.

Personal insolvencies also rose 19%

http://uk.reuters.com/article/businessNews/idUKTRE54024O20090501

Edited to add:

7.1% Q on Q. Construction, retail, automotive and their suppliers being hit since the beginning of the year per KPMG:

http://business.timesonline.co.uk/tol/business/economics/article6204108.ece

(breaking news so more articles released since initial post)

*MF*

THERE has been a dramatic fall in the number of Scottish companies collapsing into insolvency as the recession tightened its grip on the economy.

Figures out today will show that number of Scottish firms becoming insolvent in the first three months of this year fell by 35 per cent compared to the same period in 2008.

Data from the Insolvency Service, the UK government agency that deals with corporate insolvencies, shows that 231 Scots firms went bust in the first three months of 2009, compared with 354 in the first quarter of 2008.

Accountants were at a loss last night to explain why the figure had dropped so dramatically, but pointed out that larger companies were now going to the wall as the recession continued to bite.

Anne Buchanan, a corporate recovery partner at accountancy firm PKF, said: "These figures are perhaps surprising since they seem to indicate, superficially at least, that the recession is having a limited impact on the solvency of Scottish companies. However the figures belie the true story, which is that there is an increasing flow of much larger businesses being made insolvent and the wave of insolvency is increasing as the months go by."

From here:

http://thescotsman.scotsman.com/business/39Calm-before-storm39-as-number.5225372.jp

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Only time I suspect we will see green shoots in Scotland this year - may be around Aug 12th, when the grouse season starts, and a certain type of welly is being worn. :cool:

vivatifosi

Thanks MF. Interesting one that. Its one of my frustrations that England and Wales have a separate "Companies House" to Scotland and to NI. So much for being a United Kingdom. Interesting to see that the different countries are acting so differently.

I find the insolvency statistics scary. Although my own business won't go under, I've recently incurred my first bad debt as a result of one of my clients failing, thankfully it wasn't for very much but its been quite a lesson nonetheless.

Cannon_Fodder

Would recommend caution on the Scots stats...

http://www.insolvency.gov.uk/otherinformation/statistics/200905/table1.pdf matches the England & Wales 7.1% article ok.

but
http://www.insolvency.gov.uk/otherinformation/statistics/200905/table4.pdf does not match the Scottish figures in MF's link...

cannot find anything with 231 and 354, maybe someone else can spot it... http://www.insolvency.gov.uk/otherinformation/statistics/insolv.htm

102 appears a solid Q1 2008 figure. Ok the Q1 2009 figure of 161 is provisional, and there maybe a revision I haven't spotted...

The press release however seems to match the full reports;

http://nds.coi.gov.uk/environment/fullDetail.asp?ReleaseID=400340&NewsAreaID=2&NavigatedFromDepartment=False
and
http://nds.coi.gov.uk/environment/mediaDetail.asp?MediaDetailsID=273037&NewsAreaID=2&ClientID=95&LocaleID=2

No idea where they get this reduction from...

Should be 57.8% INCREASE...

*MF*

Cannon Fodder - interesting!

Two major newspapers in Scotland are the Scotsman ( I used above) and the Herald.

From the Herald today:

Figures obtained by accountancy firm PKF from the Accountant in Bankruptcy show that, in the first three months of this year, 231 Scottish companies became insolvent.

This comprised 162 com- pulsory liquidations, 63 creditors' voluntary liquidations, and six receiverships.

In the fourth quarter of last year, 228 Scottish firms fell into insolvency, comprising 166 compulsory liquidations, 54 creditors' voluntary liquidations, and eight receiverships.

Anne Buchanan, corporate recovery partner with PKF in Glasgow, told The Herald: "We are certainly not as busy as we thought we might be. We are now into May. We haven't had a major rise in the insolvency figures. It is probably quieter this year than last year for us.

"We are certainly not seeing the insolvency figures we thought we would see, or the number of company directors coming in to see us that we thought."

From here:

http://www.theherald.co.uk/business/news/display.var.2505330.0.survey_points_to_a_major_rise_in_scots_firms_going_bust.php

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What seems obvious is that both reports are coming from a press release from PKF (lol, looking to drum up business - we need more insolvencies, lmao) - what may be less obvious, and may (stress may) lie behind any disparities is how and maybe when the Insolvency Service and the Scottish equivalent, the Accountant in Bankruptcy establish their stats.

I know that sounds weird, but it is all too common for there to be disparities of that type. If I see anything else I will post.

Cannon_Fodder

http://www.aib.gov.uk/News/releases/2009/04/22141026

"Statistics showing insolvencies in the fourth quarter of year ending 31/3/09 are published today, 24 April 2009, by the Accountant in Bankruptcy. Figures are collated to 31/03/09"

"COMPANY LIQUIDATIONS AND RECEIVERSHIPS
The Accountant in Bankruptcy received 231 notices of Scottish companies becoming insolvent or entering receivership in the fourth quarter of 2008/09. This figure includes 6 receiverships, 162 compulsory liquidations and 63 creditors' voluntary liquidations."


08/09...so its an awkward April financial year, which could explain Q4/Q1 confusion, but still a different set of numbers compared to the Insolvency Service...

Notices, rather than actual...?

*MF*

Cannon_Fodder wrote: »

<snip>

Notices, rather than actual...?

Well, you know what they say ...

"Statistics means never having to say you're certain"