A KPMG analysis has found that administrations fell by around 25% in 2018, whilst liquidations rose by 18%. When looking specifically at Scotland, insolvencies rose by 14% throughout the year. Further statistics show how insolvency appointments rose from 832 in 2017 to 945 in 2018.
Despite the bleak outlook, analysts have advised that the figures are disappointing but not alarming, with reference to the falling number of insolvencies within the final three months of 2018.
The figures do, however, represent how larger businesses struggled within 2018. With administration generally affecting larger companies, this rate rose. Whilst, those entering liquidation, which tends to be smaller businesses, saw a decrease in frequency.
What has been said to explain all of these insolvency figures, is the nervousness evident around Brexit. With many detailing the uncertainty for 2019 due to the uncertainty currently still remaining around Brexit.
We are a licensed insolvency practitioner based in Plymouth, St. Austell, Truro and Penzance. If you need any advice regarding insolvency or related issues please get in contact with us.