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: 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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