Slight uptick in UK insolvencies but liquidations and administrations fall
The number of registered company insolvencies in December 2023 was 2,002 – a 2% increase from the same month last year (1,965 in December 2022) according to new figures.
There were 153 compulsory liquidations in December 2023, down 18% year-on-year. Numbers of compulsory liquidations had increased from historical lows seen during the coronavirus pandemic, partly as a result of an increase in winding-up petitions presented by HMRC, but this seems to have slowed in December 2023.
The number of Creditors’ Voluntary Liquidations (CVLs) was 1,731, administrations were at 103 and there were 15 Company Voluntary Arrangements in December 2023.
CVL numbers were higher (5% up) than in December 2022, while compulsory liquidation and administration numbers were lower by 18% and 8% respectively.
Commenting on the latest figures, Gareth Harris, partner at RSM UK Restructuring Advisory,said: ‘It is disappointing, but probably not surprising that insolvency levels remain high. The uptick in insolvencies demonstrates clearly how many businesses across many sectors are struggling financially and what a tough trading environment they are facing. However, its promising to see liquidations and administrations slowing.
‘With continuing economic uncertainty and such low growth it looks like it will be a tough 2024 for many, and it could be the end of the year before we see any real reduction back towards more “normal” levels of monthly insolvencies.’
