The Insolvency Service published the most recent figures for UK company insolvencies in December 2024.
After seasonal adjustment, 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 in the previous year (2,139 in December 2023). The number of company insolvencies remained much higher than those seen during the COVID-19 pandemic and between 2014 and 2019.
Of the 1,838 registered company insolvencies in November, there were:
Figure 1: The total number of company insolvencies in December 2024 was lower than in November 2024 and December 2023.
Sources: Insolvency Service (compulsory liquidations only); Companies House (all other insolvency procedures)
CVLs were the most common type of insolvency, accounting for 77% of all company insolvencies. The number of CVLs decreased by 8% from November 2024 and was 22% lower compared to the same month last year (December 2023).
The seasonally adjusted number of compulsory liquidations in December 2024 was 4% higher than in November 2024 and 53% higher than in December 2023.
The number of administrations has continued to increase since 2022, from an 18-year annual low seen during the COVID-19 pandemic in 2021. After seasonal adjustment, the number of administrations in December 2024 was 5% lower than in November 2024 and 5% higher than in December 2023.
The number of CVAs was 13% higher in December 2024 than in December 2023 and 21% higher than in November 2024. Due to low volumes, CVAs are not seasonally adjusted.
The five industries that experienced the highest number of insolvencies in the 12 months to November 2024 were:
Company insolvency by industry, England and Wales, December 2023 to November 2024 compared with December 2022 to November 2023.
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CoCredo’s Managing Director, Dan Hancocks, says, “In 2024, the 12-month rolling insolvency rate was 52.4 per 10,000 companies, meaning that about one in every 191 companies faced insolvency. While there was a slight decline from month to month, it's encouraging to note that this rate has improved from December 2023, when it was 57 per 10,000 companies. Hopefully, this more positive trend indicates that businesses gradually become more stable over time.”
The retail sector is facing some tough challenges, with recent reports revealing that the number of UK retailers at risk of going under increased by 25% in the final quarter of 2024. This rise is mainly due to spiralling business costs and a dip in consumer confidence, which has caused a 29% increase in critical financial distress. The food and drug retail sector saw a 17% rise.
While the overall decrease in insolvencies is encouraging, these statistics underscore the complex economic environment businesses are navigating with specific retail sectors continuing to grapple with financial pressures.”
Considering the latest insolvency figures, we recommend that you take proactive steps to ensure the financial stability of your business and suppliers.
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Take advantage of our offer of a free company credit check trial. Get inside knowledge on your business partners with our UK and International credit reports to reduce credit risk and improve cash flow and productivity. Call us on 01494 790600 or drop us an email instead.
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