Helping directors online for over 23 years.
The company insolvency statistics for the third quarter of 2023 (1 July to 30 September) have been released, and so we discuss the findings here.
Company Insolvency in England and Wales
The total number of company insolvencies registered in Q3 2023 was 6,208. This is a 10% increase compared to the same period the year before but is a 2% decrease compared to Q2 2023. It should be noted that the two quarters prior to Q3 2023 saw the highest quarterly numbers of insolvencies since Q2 2009! So quarter three shows the figures stabilising and is still near to levels seen post 2008 financial crisis.
Process specific breakdown:
It should be reflected on that there were 46 companies obtaining a moratorium and 22 companies having restructuring plans registered at Companies House, between 26 June 2020 and 30 September 2023.
When comparing to Q2 statistics of 2023, it was a mixed bag whereby administrations and CVLs decreased in use, but CVAs, compulsory liquidations and receiverships all slightly rose.
This being said…CVLs hit the highest levels since record began back in 1960, said to be due to experts clearing court backlogs from the covid pandemic.
Liquidation Rates per 10,000 active companies
In the four quarters ending Q3 2023, the liquidation rate for companies was 52.4 per 10,000 active companies in England and Wales (1 in 191 companies liquidated in the 12 months ending 30 September 2023). This rate is almost exact to that recorded in 2023 Q2. When comparing against the rate in Q3 2022, there has been an increase.
Company Insolvencies by Industry
From analysing SIC codes of companies and the insolvency statistics, it has been shown that the industries experiencing the highest amount of insolvencies in the 12 months ending Q3 2023 were:
These top five industries match that of Q2 2023 but when looking at the industries experiencing the highest amount of insolvencies in the 12 months ending Q3 2022, there was a much smaller increase in the Construction and Administrative Support sectors.
Company Insolvencies in Scotland
In Scotland, there were 296 company insolvencies recorded for Q3 2023. This is 7% higher than in the same period of 2022. Statistics included 107 compulsory liquidations, 174 CVLs and 15 administrations. There were no CVAs or receiverships.
The liquidation rate for the 12 months ending Q3 2023 was 51.7 per 10,000 active companies. This was up by 7.7 compared to the same period the year before, but was almost exact to that in Q2 2023.
Between 26 June 2020 and 30 September 2023, there were no moratoriums in Scotland, but there were two restructuring plans registered at Companies House.
Company Insolvencies in Northern Ireland
Northern Ireland saw 62 company insolvencies in Q3 2023 – almost double the amount recorded in Q2 2023. It also is an increase of 24$ compared to the same quarter of 2022. The statistics consist of 23 CVLs, 30 compulsory liquidations, 1 administration and 8 CVAs. There were no receiverships.
The liquidation rate for the 12 months ending Q3 2023 was 22.4 per 10,000 active companies in Northern Ireland. This was a decrease of 2.7 from in the same period the year before.
The full report and findings can be seen here.