Unprecedented Rise in Company Failures
- Company insolvencies reach a five-year high in Q1 2019
- Increase of 6.3% compared to the previous quarter and 5.1% compared to the same period last year
- Creditors voluntary liquidations up by 6.2% and administrations up by 21.8%
- CVAs increased by 43.1% in Q1 2019 compared to Q4 2018
- Compulsory liquidations fell by 2.7%
- Wholesale and retail trade industry grouping saw the largest increase of 9%
- Graham Bushby, head of RSM Restructuring Advisory LLP: ‘The direction of travel for company failures is unmistakably on the rise’
- Brexit uncertainty blamed for the rise in company administrations
New figures from the Insolvency Service reveal that Q1 2019 saw a significant increase in company insolvencies, with a 6.3% rise compared to the previous quarter and a 5.1% increase compared to the same period last year. This was driven by creditors voluntary liquidations (up 6.2%) and administrations (up 21.8%). CVAs also increased by 43.1%. Compulsory liquidations fell, but wholesale and retail trade experienced a 9% rise in underlying insolvencies. Graham Bushby of RSM Restructuring Advisory LLP stated that the direction of company failures is on the rise due to Brexit uncertainty.
Factuality Level: 10
Factuality Justification: The article provides accurate and objective information about the increase in company insolvencies in Q1 2019 compared to previous quarters and years, citing specific numbers and industry-specific data. It also includes a relevant expert opinion on the potential cause of the rise.
Noise Level: 3
Noise Justification: The article provides relevant and accurate information about the increase in company insolvencies in Q1 2019 compared to previous quarters and years, and includes expert commentary on the potential impact of Brexit uncertainty. However, it does not delve into long-term trends or possibilities, antifragility, accountability, scientific rigor, intellectual honesty, staying on topic, evidence, data, examples, or actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: UK financial markets and companies
Financial Rating Justification: The article discusses an increase in company insolvencies, which can impact the financial performance of businesses and potentially affect stock prices and investor confidence. It also mentions a specific industry (wholesale and retail trade) that has seen an increase in insolvencies, which could lead to changes in that sector’s market performance.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.
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