Company Insolvencies – Liquidations, Receiverships, and Voluntary Administrations
Company insolvency appointments for June 2023 combined across all insolvency types have beaten out all past years shown in the above graph back to 2019. Court liquidations have been a driver for these increased levels showing the highest figures since prior to 2020 with 59 appointments. This increase is following a number of months or stronger than usual winding up applications lead in part by IRD and its recent drive to collect delinquent debtors.
Whether this level of court appointments will continue into the election only time will tell what IRD does, or if shareholder appointments will continue to grow due to an ongoing cost of living crisis and general price increases. It appears unlikely that we will see a miraculous recovery before the end of 2023.
Total corporate insolvency figures for the year to date remain above the last 3 years and have begun to once again pull back 2019 figures with a strong June. For the year to date 2023 is one 21 appointment behind 2019, realistically this is only 2 – 3 days of appointments. 2023 remains a far cry from 2018 which was at 1,111 total appointments for the year to date.
Winding Up Applications
In June, there has been a consistent increase in the number of winding up applications compared to past Junes. In June 2021, there were 83 applications, with 21 being company winding up applications and 62 being IRD winding up applications. The trend continued in June 2022, with 38 total applications, including 15 company winding up applications and 23 IRD winding up applications. June 2023 saw a further rise, reaching 95 applications, consisting of 33 company winding up applications and 62 IRD winding up applications.
When considering the year-to-date figures, we observe a continuous increase in the cumulative total of winding up applications. From January to June, the numbers have consistently grown over the year apart from a slight dip in March, reflecting a persistent upward trend.
From the below graph we see that IRD’s winding up applications is almost 2x the remainder of all creditors and has continued to grow month on month since March.
Personal Insolvencies – Bankruptcy, No Asset Procedure and Debt Repayment Orders.
Personal insolvency appointments remain at the low levels seen in the last few years and are looking very similar to 2022. As a breakdown of appointment types bankruptcies remain above their long term average with both No Asset Procedures and Debt Repayment Orders below their averages.
With the increasing levels of corporate insolvencies we can expect business related bankruptcies to increase in the later half of the year. This will likely be driven by the increased cost of living struggles, personal guarantees being called up by creditors, and overdrawn current accounts being a frequent asset in a lot of liquidations.
Election Year Insolvencies
The above graph details the total corporate and personal appointments across all appointment types in this year and the last two election years.
Total insolvencies have dipped below 2020 in May 2023 Personal insolvency appointment levels continue to drag down the total as you can see in the below graph they remain below 2017 and 2020 figures. The corporate insolvency figures sit between the last 2 election year comparatives.
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