Written ByRobert Moore
Marketing Manager
Rob has over a decade of experience in web and general marketing. He has extensive knowledge of the Insolvency sector and has helped many worried directors with their questions.
Rob is now working with the Board at KSA Group Ltd to develop strategic marketing programmes to support the business plan and drive more company rescues.
The monthly insolvency statistics have been released for the month of December 2023.
Overall it looks like the number of insolvencies are pretty flat compared to last month. Of course the actual number of insolvencies isn’t the whole story as some companies are much bigger than others.
In the last few months there haven’t been any larger companies in financial trouble with only Wilko going bust back in August. At the beginning of this year we are hearing about other larger businesses in trouble. Superdry have just turned to emergency funding to keep themselves afloat and at our end we are seeing some larger companies asking for help. This may be due to the inflationary environment which has added to the cost of labour and materials. In addition these larger companies have taken out loans at rock bottom rates and now beginning to see higher rates. Larger companies tend to resist this pressure for longer but eventually they need to ask for help and cut costs or raise prices (if possible)
December 2023 saw 2,002 registered company insolvencies through England and Wales. This is an increase of 2% when compared to the amount registered in the same month of 2022. This is also higher than figures during the pandemic and pre-pandemic. Compared to November 2023 figures it is a slight drop.
The company insolvencies consisted of:
There were no receiverships registered.
CVLs (5% higher than in Dec-22) and CVAs (50% higher than in Dec-22) appear to be the drivers of the increase in company insolvencies, compared to December 2022. Compulsory Liquidations and Administration levels fell, by 18% and 8% respectively.
Between 26 June 2020 and 31 December 2023, 49 moratoriums were obtained in England & Wales, along with 22 companies having a restructuring plan registered at Companies House.
Moving on to the statistics for Scotland and December 2023 saw 108 registered company insolvencies (almost exact to the recorded figure for November 2023). This is made up of 65 CVLs, 40 compulsory liquidations and 3 administrations. No CVAs or receiverships were recorded.
Historically, compulsory liquidations have led the way for the company insolvencies in Scotland. But through 2023 CVL numbers remained more than 1.5 times higher than compulsory liquidation numbers.
Between 26 June 2020 and 31 December 2023, no moratoriums were obtained for companies in Scotland. Two companies did register a restructuring plan at Companies House.
For Northern Ireland, 25 company insolvencies were registered in December 2023 – this being 67% higher than that in December 2022 and almost identical to the figure for November 2023. Registrations consisted of 6 compulsory liquidations, 17 CVLs, 1 administration and 1 CVA. No receiverships were recorded for this period.
England and Wales had 6,584 Individual Insolvencies registered in December 2023. This is 20% less than what was registered in December 2022. It is thought that the reason for the decline is the lack of IVAs, as DROs and bankruptcies increased.
Delving deeper, the registrations are broken up into:
Northern Ireland had 76 Individual Insolvencies registered in December 2023. Numbers are made up of 60 IVAs, 6 DROs and 10 bankruptcies. Total numbers are 39% lower than the same month a year previous.
You can refer to the full report here.
Monthly Insolvency Statistics: August 2024
The August monthly insolvency statistics have been released. Here we share an overview. Company Insolvencies Statistics report that August 2024 showed a total of 1,953 registered company insolvencies in England and Wales, a 15% decrease compared to August 2023. Despite a decrease, these figures are still higher than the number of company insolvencies seen during the COVID-19 pandemic and between 2014-2019.Administrations, Compulsory Liquidations and CVLs faced a decrease in usage in August 2024. Company Voluntary Arrangements (CVAs) were the only insolvency tool to experience an increase, that being an 82% increase compared to August 2023 levels.Nonetheless, creditors’ voluntary liquidations (CVLs) remained the most common tool used, comprising 79% of cases.Registered at Companies House through August 2024, there was just one restructuring plan and two moratoriums.Scotland and Northern Ireland both saw a decrease in insolvencies in August 2024, being 9% and 8% respectively, compared to August 2023.With CVAs on the rise is is hopeful that of the many companies which are facing financial struggles, a rescue is on the cards and trading can continue.Find the full release here.
ReadMonthly Insolvency Statistics July 2024
The July monthly insolvency statistics have been released. Here we provide a summary overview. Company Insolvencies The July 2024 company insolvency statistics for England and Wales showed a total of 2,191 insolvencies, a 16% increase compared to July 2023.Creditors’ voluntary liquidations (CVLs) remained the most common, comprising 77% of cases.Compulsory liquidations also saw a rise, reaching their highest level since 2018. Sectors such as construction and retail were notably impacted.Scotland saw a 21% year-on-year increase in insolvencies, while Northern Ireland’s figures remained stable. The overall trend indicates a gradual increase in insolvency cases across the UK.Just 25 companies were rescued by using Company Voluntary Arrangements (CVAs) in July. This is unfortunate as surely it is possible that some of the 1000s of companies that went insolvent last month some might have been able to survive by using a CVA? CVLs The number of CVLs decreased by 9% from June 2024 but was 15% higher than during the same month last year (July 2023), after seasonal adjustment. Compulsory Liquidations The number of seasonally adjusted compulsory liquidations in July 2024 was the highest monthly number since August 2018, 5% higher than in June 2024 and 27% higher than in July 2023.In 2023, there were 44% more compulsory liquidations than in 2022, but they were still 4% fewer than in 2019 (before to the pandemic). The numbers have risen from the all-time lows observed in 2020 and 2021, when limitations were placed on the use of winding-up petitions and statutory demands, which resulted in compulsory liquidations. Administrations The number of administrations in July 2024 was 10% lower than in June 2024 but 6% higher than in July 2023, after seasonal adjustment.High profile administrations have been few and far between these last few months with Carpetright being the most noteable exception.It does seem that In the 12 months to June 2024 compared to the previous 12-month period, insolvencies increased by the most in the hospitality sector. The increase was c.15%This is not surprising given that this includes the period of high inflation in the last half of last year.
ReadMonthly Insolvency Statistics: February 2024
The second monthly insolvency statistics have been released for 2024, focusing on February. Here we provide a detailed overview. Company Insolvencies February 2024 saw 2,102 registered company insolvencies through England and Wales. This is an increase of 17% when compared to the amount registered in the same month of 2023. It is also higher compared to January 2024 figures and that when Government support measures were in place in response to the COVID-19 pandemic.The company insolvencies for February 2024 consisted of:1,707 Creditors Voluntary Liquidations (CVLs) – 12% higher than in February 2023 217 Compulsory Liquidations – 35% higher than in February 2023 166 Administrations – 54% higher than in February 2023 12 Company Voluntary Arrangements (CVAs) – identical to the amount in February 2023There were no receiverships registered.A higher number of Compulsory Liquidations, CVLs and Administrations seem to be the driving force of the increase in company insolvency statistics compared to February 2023.It is important to note that now, company insolvency numbers have returned to and exceeded pre-pandemic levels.Between 26 June 2020 and 29 February 2024, 52 moratoriums were obtained in England & Wales, along with 22 companies having a restructuring plan registered at Companies House.Moving on to the statistics for Scotland and February 2024 saw 94 registered company insolvencies – quite similar to the levels noted in January 2024. Compared to February 2023 figures, the same month of 2024 saw an increase of 9% in registered company insolvencies. February 2024 figures are made up of 58 CVLs, 33 compulsory liquidations and 3 administrations. No CVAs or receiverships were recorded.Historically, compulsory liquidations have led the way for the company insolvencies in Scotland. But since April 2020, CVL numbers remained higher than compulsory liquidation numbers.Between 26 June 2020 and 29 February 2024, no moratoriums were obtained for companies in Scotland. Two companies did register a restructuring plan at Companies House.For Northern Ireland, 26 company insolvencies were registered in February 2024 – this being twice as many as recorded in February 2024. Registrations consisted of 14 compulsory liquidations, 9 CVLs, 3 administrations. No receiverships or CVAs were recorded for this period. Individual Insolvencies England and Wales had 10,136 Individual Insolvencies registered in February 2024. This is 23% more than what was registered in February 2023 and also a significant rise compared to January 2024. It is thought that the reason for the increase is the all tools; DROs, bankruptcies and IVAs, saw an increase in this period.Delving deeper, the registrations are broken up into:3,007 Debt Relief Orders (DROs) – 44% higher than in February 2023 6,420 Individual Voluntary Arrangements (IVAs) – 16% higher than in February 2023 – an unusually high amount due to some IVAs being registered only now, but approved 2 or more months earlier 709 Bankruptcies (split as 594 debtor applications and 115 creditor petitions) – 16% higher than in February 2023Northern Ireland had 112 Individual Insolvencies registered in February 2024 – identical to the amount noted in January 2024. Numbers are made up of 90 IVAs, 11 DROs and 21 bankruptcies. Total numbers are 13% lower than the same month a year previous. Comparing to pre-pandemic levels, since March 2020, levels of individual insolvencies have been lower in Northern Ireland.You can refer to the full report here.
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