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Monthly company insolvency statistics June 2024

  • 23/07/2024
  • Paul Atkinson

concerned businessman checking the financial accounts of his company

The Insolvency Service has released the latest figures for UK company insolvencies in June 2024.

In June 2024, the number of registered company insolvencies in England and Wales was 2,361, 16% higher than in May 2024 (2,040) and 17% higher than in June 2023 (2,016). The number of company insolvencies remained significantly higher than those observed during the COVID-19 pandemic and between 2014 and 2019.

Of the 2,066 registered company insolvencies in June 2024:

  • 302 compulsory liquidations (which occur when a court orders the winding-up of a company due to unpaid debts).
  • 1,866 creditors’ voluntary liquidations (CVLs). (Companies who voluntarily choose to liquidate when they cannot pay their debts).
  • 170 administrations (An administration aims to rescue a company or achieve a better outcome for creditors).
  • 23 company voluntary arrangements (CVAs) (These arrangements allow companies to reach agreements with creditors to repay debts over time).

Between 1st July 2023 and 30th June 2024, the insolvency rate increased from 55.1 to 55.8 per 10,000 companies. One out of every 179 companies listed on the Companies House effective register went insolvent.

Figure 1: Company insolvency numbers by type, England and Wales, May 2019 to May 2024

june company insolvency figures shown in a line graph

Sources: Insolvency Service (compulsory liquidations only); Companies House (all other insolvency procedures).

CVLs
In June 2024, CVLs accounted for 79% of all company insolvencies. The number of CVLs in June 2024 was 16% higher than in May 2024 and 16% higher than in June 2023 after seasonal adjustment.

2023 saw the highest annual number of CVLs since the start of the time series in 1960, continuing the year-on-year increases seen since 2021. Between 2017 and 2019, CVLs increased by approximately 10% per year before decreasing to the lowest levels seen since 2007 during the COVID-19 pandemic.

Compulsory liquidations
The number of seasonally adjusted compulsory liquidations in June 2024 was 10% higher than in May 2024 and 19% higher than in June 2023.

The number of compulsory liquidations in 2023 increased by 44% compared to 2022 but remained 4% lower than in 2019, before the pandemic. The numbers have risen from the record low levels seen in 2020 and 2021 due to restrictions on statutory demands and certain winding-up petitions, leading to compulsory liquidations.

Administrations
After seasonal adjustment, the number of administrations in June 2024 was 30% higher than in May 2024 and 22% higher than in June 2023.

Following an 18-year annual low number of administrations during the COVID-19 pandemic in 2021, there has been a steady recovery, with increasing numbers in 2022 and 2023. The current levels are now comparable to those seen between 2015 and 2019.

CVAs
The number of CVAs was 64% higher in June 2024 than in June 2023 and 21% higher than in May 2024. However, the numbers remain low compared to historical levels. Due to low volumes, CVAs are not seasonally adjusted.

The number of CVAs in 2023 was 68% higher than in 2022, which saw the lowest annual total in the time series going back to 1993; however, the number in 2023 remained approximately half of the 2015 to 2019 levels.

Company insolvencies by industry

The five industries that experienced the highest number of insolvencies in the 12 months to May 2024 were:

  • Construction: 4,287 (17% of cases with industry captured);
  • Wholesale and retail trade; repair of motor vehicles and motorcycles: 3,811. (16% of cases with industry captured);
  • Accommodation and food service activities: 3,752 (15% of cases with industry captured);
  • Administrative and support service activities: 2,363 (10% of cases with industry captured);
  • Professional, scientific and technical activities: 1,969 (8% of cases with industry captured);

Figure 2: In the 12 months to May 2024 compared to the previous 12-month period, insolvencies increased by the most in the Accommodation and food service activities sector.

Company insolvencies by industry for June 2023

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