The number of company insolvencies in January 2024 against a confirmed recession and continuing high interest rates was 5% higher than in January 2023.
The number of registered company insolvencies in January 2024 was 1,769, 5% higher than in the same month in the previous year (1,685 in January 2023), which was higher than levels seen while the Government support measures were in place in response to the coronavirus and higher than pre-pandemic numbers.
Of the 1,769 registered company insolvencies in January 2024:
Figure 1: The number of registered company insolvencies in January 2024 was slightly higher than in the same month last year, driven by higher numbers of compulsory liquidations and administrations.
Sources: Insolvency Service (compulsory liquidations only); Companies House (all other insolvency types)
For individuals, the total number of insolvencies in January 2024 was 8,089, 4% higher than in the same month in the previous year (7,756 in January 2023), broken down as follows:
The number of individual insolvencies in February 2023 was higher than in January 2023. This increase was mainly due to a 60% rise in the number of DROs and a 20% increase in the number of bankruptcies. On the other hand, the number of IVAs decreased by 16%. In 2022, the annual number of IVAs reached a record high, but in 2023, the figure went down. Meanwhile, the number of DROs and bankruptcies increased in 2023, although the number remained lower than pre-2020 levels.
Figure 2: IVA numbers in January 2024 were lower than in January 2023. Bankruptcy and DRO numbers were higher in January 2024 than in the same month last year.
Source: Insolvency Service
For over 20 years, CoCredo has provided online business credit reports, related company credit check information, and financial data to businesses and suppliers in the UK and internationally.
Dan Hancocks, CoCredo MD, says: “Although the technical recession lasted only six months, the past two years have been challenging for many small and medium-sized businesses. They have been facing low growth, supply-chain issues, and high inflation. The Bank of England has stated that a sharp drop in interest rates is unlikely, and businesses should plan for a slow and gradual economic recovery instead of a sudden bounce back. ”
“January was a difficult ending to a challenging year for businesses. Despite the hopes for a post-Christmas boost, people hesitated to spend money on non-essentials due to food, fuel, and energy costs. Meanwhile, businesses continued to face high running costs and tight margins.”
Our UK and International Monitoring service is designed to keep you informed about any changes in a business, including their financial performance, payment history, County Court judgments, and more. By subscribing to this service, you will receive regular email notifications for 12 months, allowing you to keep track of any changes and gain valuable insights into a company's financial performance. With this information, you can proactively take the necessary steps to protect your business.
Would you like to try out a free trial of our company credit report? To learn more about our business credit check services, which can aid in decreasing your credit risk while also improving your cash flow and productivity, you can contact us via phone at 01494 790600 or email us.
© Copyright CoCredo Ltd 2024 | Registered in England & Wales 05319965 | VAT Registration 878787434