The construction sector saw the highest number of company insolvencies in the first quarter of the year, despite numbers falling year-on-year, latest data from the Insolvency Service has shown.
The sector saw fewer insolvencies than it did in the same period last year, however, it topped all three quarters after. Firms engaging in specialised construction activities suffered most, with 414 firms going out of business in Q1 alone. These are business mainly involved in demolition, construction installation or building completions. They were followed by builders, which lost 216 firms in the three-month period and civil engineers, of whom 42 went bust.
Of the liquidations of construction firms in Q1, 156 were compulsory, with firms providing specialised construction activities most likely to be wound up by the courts (86 firms), while 58 builders were forced to liquidate.
In contrast, 444 firms chose to enter liquidation voluntarily in Q1. Meanwhile, the number of firms entering administration in the period stood at 54, slightly down on the 57 filing in the same period last year but eclipsing every quarter thereafter.