Q4 2023: Company Insolvency Statistics

The quarterly company insolvency statistics have been released, covering Q4 2023 (October to December).

Since this dates the final quarter of the year, an annual summary can be noted:

2023 saw the highest annual number of company insolvencies since 1993. The total of 25,158 registered company insolvencies is broken down into:

• 20,577 Creditors Voluntary Liquidations (increased by 9% from 2022)
• 2,827 Compulsory Liquidations (increased by 44% from 2022)
• 1,567 Administrations (increased by 27% from 2022)
• 185 Company Voluntary Arrangements (increased by 67% from 2022)
• 2 Receiverships
• One for every 186 active companies fell into insolvent liquidation in 2023, making the liquidation rate 53.7 per 10,000 active companies. This was an increase compared to 2022s recording. In fact, the rate in 2023 was the highest level since Q3 2014.

It should be noted that though levels of each procedure rose compared to 2022, many remained below levels seen pre-pandemic.

Taking it back to a quarterly summary:

Q4 2023 recorded 6,788 company insolvencies. This splits into 5,578 Creditors Voluntary Liquidations (CVLs), 780 Compulsory Liquidations, 379 Administrations, 50 Company Voluntary Arrangements (CVAs) and 1 Receivership.

Overall, the total amount of company insolvencies in Q4 2023 was 9% higher than that in Q3 2023, and 14% higher than in Q4 2022. Looking more historically, this quarter saw the highest quarterly total insolvencies since Q4 2008.

Being even more specific, the highest quarterly number of CVLs was recorded since 1960. Compulsory Liquidations increased by 6% compared to Q3 2023 and Q4 2022, but Administrations fell 17% compared to Q3 2023, though still remained higher than levels in 2021 and 2022. CVAs rose by 22% compared to Q3 2023, and was 100% up on Q4 2022 numbers.

Between 26 June 2020 and 31 December 2023, 49 companies obtained a moratorium and 22 companies had a restructuring plan registered at Companies House.

In terms of liquidation rates, 2023 Q4 had a rate of 53.7 company insolvencies per 10,000 active companies. This was 1.3 higher than in Q3 2023 and 4.1 higher than in Q4 2022.

Though company insolvency volumes hit a 30-year high in 2023, the amount of companies on the companies house register has increased over time. This means the 2023 rate remained lower than the peak rate of 94.8 insolvencies per 10,000 active companies during the 2008-09 recession.

Company Insolvencies per Industry

The five industries which experienced the highest number of insolvencies in 2023 are as follows:

• Construction (4,371…responsible for 18% of cases with industry captured)
• Wholesale and retail trade; repair of motor vehicles and motorcycles (3,929…responsible for 16% of cases with industry captured)
• Accommodation and food service activities (3,727…responsible for 15% of cases with industry captured)
• Administrative and support service activities (2,299…responsible for 9% of cases with industry captured)
• Professional, scientific and technical activities (2,001…responsible for 8% of cases with industry captured)

Looking into all of the large industries, an increase was noticed in insolvencies registered in 2023 compared to 2022.

Company Insolvency in Scotland

Scotland recorded 314 total company insolvencies in Q4 2023 – just one more than the same quarter in 2022.

Figures are broken down into 196 Company Voluntary Liquidations, 105 Compulsory Liquidations, 12 Administrations and 1 Company Voluntary Arrangement.

Historically the volume of company insolvencies registered in Scotland has been driven by compulsory liquidations. However, during the coronavirus pandemic, almost three times as many CVLs as compulsory liquidations were recorded. Through 2023, CVL numbers were more than 1.5 times higher than the amount of compulsory liquidations.

Between 26 June 2020 and 31 December 2023, no companies obtained a moratorium but 2 companies did have a restructuring plan registered at Companies House.

In terms of liquidation rate for 2023, Scotland’s was 51.6 per 10,000 active companies. This is 5.9 higher than 2022s rate.

Company Insolvency in Northern Ireland

Northern Ireland recorded 81 total company insolvencies in Q4 2023 – an increase of 62% compared to the same quarter in 2022.

Figures are broken down into 28 Company Voluntary Liquidations, 33 Compulsory Liquidations, 7 Administrations and 3 Company Voluntary Arrangements.

In terms of liquidation rate for 2023, Northern Ireland’s was 25.5 per 10,000 active companies. This is 1.6 lower than 2022s rate.

Please refer to the full report here.