Insolvency Figures for July: Economic Issues Still Biting Businesses

The Insolvency Service has published its latest company and individual insolvency statistics for England and Wales for July 2023.

Headlines from the latest monthly insolvency statistics are:

• The number of registered company insolvencies in July 2023 was 1,727 (6% lower than the 1,831 in July 2022). This was higher than levels seen while the Government support measures were in place in response to the coronavirus pandemic and also higher than pre-pandemic numbers.
• There were 248 compulsory liquidations in July 2023 (81% higher than in July 2022). Numbers of compulsory liquidations have increased from historical lows seen during the coronavirus pandemic, partly as a result of an increase in winding-up petitions presented by HMRC.
• In July 2023 there were 1,336 Creditors’ Voluntary Liquidations (17% lower than in July 2022). Numbers of administrations and Company Voluntary Arrangements were higher than in July 2022.
• Of the 1,727 registered company insolvencies in July 2023, 19 were CVAs (almost four times as many as July 2022), there were 124 administrations (53% higher than July 2022) and there were no receivership appointments.

If businesses are financially distressed with cash flow issues, problems paying rent, staff or suppliers, or seeing stocks piling up, their directors should seek immediate advice. Be vigilant to the signs of financial distress and act now by seeking early specialist advice.

Nicky Fisher, President of R3, the UK’s insolvency and restructuring trade body, said: “The fall in corporate insolvency levels is due to fewer businesses entering a Creditors’ Voluntary Liquidation. However, a large number of directors are still using this process to close down their businesses. Despite the monthly and yearly falls in corporate insolvencies, numbers are still well above pre-pandemic levels as the economic issues continue to bite businesses.

“Costs are rising at a time when people are cutting spending back, leaving businesses facing the challenge of squeezed margins and shrinking revenues and having to work out whether to absorb their cost increases or pass them onto their customers.

“Alongside these, requests for wage increases, and higher energy bills are also hitting businesses hard as the costs of cooling premises in the summer are just as challenging as keeping them warm in the winter. These are making firms more cautious about investment or recruitment – especially as the increased cost of borrowing will make raising funds for investment more challenging.”

The dedicated team of advisers and consultants at Forbes Burton are here to help you fix the issues and solve the problems within your business. Forbes Burton has more than 60 years of combined experience in helping small and medium sized businesses face difficulty, recover, rebuild and enjoy a brighter future.

For free confidential advice and help, get in touch with Forbes Burton today on 0800 975 0380 (freephone) or email us here.