The Insolvency Service has published the most recent figures for UK company insolvencies for September 2024.
The number of registered company insolvencies in England and Wales was 1,973 in September 2024, 2% higher than in August 2024 (1,943). However, this figure is 7% lower than the same month in the previous year (2,130 in September 2023), indicating a positive trend.
It's important to note that although the number of company insolvencies has recently decreased, it remains significantly higher than that during the COVID-19 pandemic and the period between 2014 and 2019.
Of the 1,973 registered company insolvencies in September, there were:
Figure 1: Company insolvencies in September 2024 were slightly higher than in August 2024 but lower than in September 2023.
Sources: Insolvency Service (compulsory liquidations only); Companies House (all other insolvency procedures).
In September 2024, CVLs accounted for 80% of all company insolvencies. The number of CVLs increased by 2% from August 2024 but was 9% lower compared to the same month last year (September 2023) after seasonal adjustment.
CVLs have increased by approximately 10% per year between 2017 and 2019, but during the COVID-19 pandemic, they were at their lowest levels since 2007.
In September 2024, the seasonally adjusted compulsory liquidations were 18% lower than in August 2024 and 13% lower than in September 2023.
In 2023, compulsory liquidations increased by 44% compared to 2022 but were still 4% lower than the pre-pandemic levels in 2019. The average monthly compulsory liquidations in the first nine months of 2024 exceeded those in 2019.
After seasonal adjustment, the number of administrations in September 2024 was 40% higher than in August 2024 and 19% higher than in September 2023.
The number of administrations has been stable, increasing during 2022 and 2023 from an 18-year annual low seen during the COVID-19 pandemic in 2021.
CVAs were 55% higher in September 2024 than in September 2023 but 15% lower than in August 2024. Numbers remain low compared to historical levels.
The five industries (in accordance with SIC 2007) that experienced the highest number of insolvencies in the 12 months to August 2024 were:
Company insolvency by industry, England and Wales, September 2023 to August 2024 compared with September 2022 to August 2023.
CoCredo provides market-leading business credit reports and company credit monitoring solutions, aggregating data from over 240 countries. We offer outstanding customer service and award-winning product innovation protecting businesses from bad debt.
CoCredo’s Managing Director, Dan Hancocks says, “While the increase in corporate insolvencies is modest compared to last month, it's important to acknowledge that the current business climate continues to present significant challenges for firms. These challenges include ongoing cost pressures, uncertainties stemming from announcements in the Budget, and potential ripple effects from the ongoing conflict in the Middle East.”
Businesses will have to consider whether to pass any cost increase onto customers or absorb it themselves. This is particularly relevant for sectors like energy, manufacturing, and retail.
“Our customers have expressed concerns about the potential impact of prospective tax hikes in the up-and-coming Budget in November. We suggest that directors should explore strategies to reorganise their business and finances before the Budget announcement.”
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