The total of 101 for the first quarter of the year shows a marked increase on the previous quarter’s figure of 82. The figure for the first quarter of 2010 had been 87.
Figures for the numbers going into receivership are up slightly, from 35 to 38. But this is down on the figure of 49 from a year ago.
PwC’s analysis of today’s national corporate insolvency statistics found that construction’s increases in adminstrations of 23% made it one of the worst affected sectors, behind only wholesaling and retail.
PwC found that 5,611 companies entered insolvency in the first quarter of 2011 - this is an increase of 1.3% on the same quarter of 2010. However, total insolvencies in the first quarter of 2011 increased by 12.5% compared to the fourth quarter.
There were 782 administrations in the first quarter of 2011, a 22% increase since the last quarter of 2010 when there were 642.
The significant increase in insolvencies, particularly administrations, in the first quarter of 2011 is unwelcome news” said partner business recovery services Mike Jervis. “It demonstrates the cumulative pressures faced by both companies and consumers, ranging from higher commodity prices through to uncertainty over the future direction of interest rates and employment.
“Companies have been adept at identifying problems at an early stage and addressing them. It is vital that this continues with obsessive monitoring of demand and costs and communication with relevant stakeholders – banks, creditors, employees and anyone else dependent on the viability of the business. Companies taking their eye off the ball will end up in next quarter’s stats.
“The increase in construction insolvencies supports the GDP numbers released earlier this week showing the pressures on that sector. The retail insolvency increase highlights the current issues facing consumers such as uncertainty around future employment.”
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