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 July monthly insolvency statistics have been released. Here we provide a summary overview.
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?
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.
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.
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.
Monthly Insolvency Statistics: October 2024
The October monthly insolvency statistics have been released. Company Insolvencies After seasonal adjustment, there were 1,747 company insolvencies in October 2024, 10% lower than in September 2024 and 24% lower than in October 2023. The decrease of 10% compared to September 2024 is less than the average absolute change of 12% between consecutive months over the past three years. Average monthly numbers so far in 2024 have been similar to 2023, which saw the highest annual number since 1993.Company insolvencies peaked during the 2008-09 recession, following the gradual decline seen over the early 2000s. Volumes rose during 2018 and 2019, before falling to the lowest monthly volumes on record during the COVID-19 pandemic. Company insolvencies then increased during 2021 and 2022, with 2023 seeing the highest annual number of company insolvencies since 1993. CVLs In October 2024, CVLs accounted for 83% of all company insolvencies. The number of CVLs decreased by 7% from September 2024 and was 24% lower compared to the same month last year (October 2023) after seasonal adjustment.In 2023, the annual number of CVLs reached its highest level since the start of the time series in 1960, continuing the year-on-year increases seen since 2021. Between 2017 and 2019, CVLs had been rising at approximately 10% per year, but during the COVID-19 pandemic, they fell to their lowest levels since 2007. Compulsory liquidations The seasonally adjusted number of compulsory liquidations in October 2024 was 14% lower than in September 2024 and 20% lower than in October 2023.The number of compulsory liquidations has increased from record low levels seen in 2020 and 2021, while restrictions applied to the use of statutory demands and certain winding-up petitions (leading to compulsory liquidations). In 2023, compulsory liquidations increased by 44% from 2022 but remained 4% lower than 2019 (pre-pandemic levels). Administrations The number of administrations in October 2024 was 35% lower than in September 2024 and 28% lower than in October 2023 after seasonal adjustment.Numbers of administrations increased during 2022 and 2023 from an 18-year annual low seen during the COVID-19 pandemic in 2021. Current levels are similar to those seen between 2015 and 2019. Find the full release here.
ReadMonthly Insolvency Statistics: September 2024
The September monthly insolvency statistics have been released. Company Insolvencies Statistics report that in September 2024 there was a total of 1,973 registered company insolvencies in England and Wales, a 7% decrease compared to September 2023, yet a 2% increase compared to August 2024.Administrations and CVLs saw an increase compared to last month, but for CVAs and Compulsory Liquidatio there was a decrese.Overall, creditors’ voluntary liquidations (CVLs) remained the most common tool used, comprising 80% of cases.No moratoriums or restructuring plans were registered at Companies House through September 2024.In the 12 months to date, the company liquidation rates was 55 per 10,000 companies on the effective register in England and Wales. This relates to 1 in 182 companies entering insolvency. This rate has remained pretty stable when comparing to the last few months.When exploring company insolvencies by industry, the majority of industries saw an increase in company insolvencies in the 12 months to 31 August 2024. Notable changes are for Accommodation and Food Service and Information Technology.Scotland and Northern Ireland both saw a decrease in insolvencies in September 2024, being 16% and 24% respectively, compared to September 2023.Find the full release here.
ReadMonthly 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.
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