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: January 2025
After seasonal adjustment, 1,971 companies became insolvent in January 2025, up 6% from December 2024 and 11% from January 2024. After three years, the average absolute change between consecutive months has been 12%.After declining in the early 2000s, company insolvencies soared during the 2008-09 crisis. Government support measures during the COVID-19 epidemic in 2020 and 2021 reduced monthly volumes to their lowest ever. Creditor Voluntary Liquidations (CVL) numbers rose above pre-pandemic levels in 2022, although compulsory liquidations and administrations remained low. CVLs reached a record high and compulsory liquidations matched 2015-19 levels in 2023, bringing insolvency numbers to a 30-year high. The 2024 total was slightly lower than 2023 because CVLs decreased more than other insolvency categories.Figure 2: Company insolvencies during the second half of 2022 have reached 2008-09 recession levels. English and Welsh monthly firm insolvencies by type, January 2000–January 2025, seasonally adjusted.CVLs CVLs represented 78% of company insolvencies in January 2025. CVLs rose 9% from December 2024 and 14% from January 2024 after seasonal adjustment. Compulsory liquidations The seasonally adjusted number of compulsory liquidations in January 2025 was 5% fewer than in December and January 2024. Administrations January 2025 saw 10% more administrations than December 2024 and 9% more than January 2024 following seasonal adjustment. CVAs The number of CVAs decreased by 13% in January 2025 compared to January 2024 and 18% from December 2024. Numbers remain low compared to historical levels. There were 9% more CVAs in 2024 than in 2023 and approximately 80% more than in 2022, which had the lowest yearly total since 1993. Despite this increase, 2024's number was just under 60% of the 2015–2019 average.
ReadMonthly Insolvency Statistics: December 2024
In 2024, there were 23,872 registered company insolvencies, which included 18,840 creditors' voluntary liquidations (CVLs), 3,230 compulsory liquidations, 1,597 administrations, 202 company voluntary arrangements (CVAs), and three receivership appointments. The overall number of corporate insolvencies in 2024 was 5% lower than in 2023, the greatest yearly figure since 1993.The reduction in overall firm insolvency numbers in 2024 was mostly driven by CVLs, which were 8% lower than the record high levels recorded in 2023. The number of obligatory liquidations grew by 14% from 2023, reaching its highest level since 2014. Administrations (increased 2%) and CVAs (up 9%) both exceeded 2023 levels.In 2024, one in every 191 firms on the firms House effective register (at a rate of 52.4 per 10,000 companies) becam insolvent, down from 57.2 per 10,000 in 2023. The 2024 insolvency rate is significantly lower than the peak of 113.1 per 10,000 enterprises experienced during the 2008-09 recession, despite the fact that 2023 and 2024 had comparable levels of insolvencies. This is because the number of businesses on the effective register has more than doubled.Monthly Summary for December 2024 Following seasonal adjustments, the number of registered company insolvencies in England and Wales was 1,838 in December 2024, 6% lower than in November 2024 (1,962) and 14% lower than the same month the previous year (2,139 in December 2023). The number of corporate insolvencies remained significantly greater than those observed during the COVID-19 epidemic and between 2014 and 2019.Company insolvencies in December 2024 included 273 compulsory liquidations, 1,421 CVLs, 127 administrations, and 17 CVAs. There were no receivership appointments. Compulsory liquidations and CVAs were up from November 2024, while CVLs and administrations were down.There has been much comment lately about the number of increased compulsory liquidations being due to the increased taxes imposed by the government. However, in our view, given that the overall insolvency rates have decreased, the most likely reason for these compulsory liquidations increase is a "mopping up" of the delinquent companies that have already stopped trading, owe tax, and failed to pay back bounce back and other loans following the pandemic.
ReadMonthly Insolvency Statistics: November 2024
After seasonal adjustment, the number of registered company insolvencies in England and Wales was 1,966 in November 2024, 13% higher than in October 2024 (1,743) and 12% lower than the same month in the previous year (2,243 in November 2023). The number of company insolvencies remained much higher than those seen both during the COVID-19 pandemic and between 2014 and 2019. Company Insolvencies Company insolvencies in November 2024 consisted of 254 compulsory liquidations, 1,565 creditors’ voluntary liquidations (CVLs), 132 administrations, 14 company voluntary arrangements (CVAs) and one receivership appointment. All types of company insolvency except for receivership appointments (which are rare) were higher than in October 2024.One in 189 companies on the Companies House effective register (at a rate of 52.9 per 10,000 companies) entered insolvency between 1 December 2023 and 30 November 2024. This was a decrease from the 57.3 per 10,000 companies that entered insolvency in the 12 months ending 30 November 2023. Insolvency rates are calculated on a 12-month rolling basis as a proportion of the total number of companies on the effective register. The 12-month rolling rates show longer term trends and reduce the volatility associated with estimates based on single months.While the insolvency rate has increased since the lows seen in 2020 and 2021, it remains much lower than the peak of 113.1 per 10,000 companies seen during the 2008-09 recession. This is because the number of companies on the effective register has more than doubled over this period. CVLs In November 2024, CVLs accounted for 80% of all company insolvencies. The number of CVLs increased by 8% from October 2024 and was 15% lower compared to the same month last year (November 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 November 2024 was 37% higher than in October 2024 and 6% lower than in November 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 November 2024 was 36% higher than in October 2024 and 12% higher than in November 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.
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