3 Important Highlights From The Latest Insolvency Statistics

business report on desk

The latest insolvency statistics are out, detailing the exact numbers of insolvencies, administrations and bankruptcies in February 2024. These figures also provide a crucial year-on-year comparison which UK businesses can use to extract vital insights and situate their own performance and experiences. 

There are a number of key highlights in this month’s report so it is important that you take the time to read and dissect the data offered by the Insolvency Service. Through our own analysis, we have pulled out the following highlights to offer valuable context to a rapid and challenging start to 2024.

Company Insolvency Levels Up 17% Year-On-Year

The main message from the latest insolvency statistics is that company insolvency numbers are rising. 2,102 companies were registered as insolvent in February 2024 – a 17% increase from the numbers reported in the same month last year. Monthly insolvency levels were also higher than January 2024 which indicates that operating conditions have steadily been getting more challenging for some time. February 2024 appears to have been the tipping point for many businesses who found themselves unable to survive any longer.

Fewer Compulsory Liquidations Than Last Month

Despite the latest insolvency statistics reporting a noticeable rise in the overall number of company insolvencies, there were fewer compulsory liquidations in February 2024 compared to January 2024. The rise in company insolvency levels can therefore be attributed to a large increase in the number of creditors voluntary liquidations (CVLs). This is the liquidation process used by directors of insolvent companies and therefore its prominence highlights how increasing numbers of businesses are taking matters into their own hands and winding up voluntarily rather than waiting for a winding-up petition to be enforced by HMRC.

Sharp Increase In Administrations

February 2024 also saw the highest number of administrations since the summer of 2023. While this again reinforces the key message that times are tough for UK businesses, it also shows that, when faced with insolvency, growing numbers of directors are focusing their efforts on alternatives to liquidation and possible business rescue plans rather than immediately looking towards liquidation. There is no guarantee that a business sale or rescue will be secured when a company enters into Administration, but this process does grant a business valuable breathing room in which appropriate rescue measures can be explored. 

Next Steps For Businesses In 2024

The rise in company insolvency numbers will undoubtedly be concerning for most company directors but there are lots of steps you can take should you find yourself in trouble. Being proactive and seeking advice will not only help you to better understand the current conditions but will also ensure that you have access to the most suitable rescue or closure options before choice is taken away from you. 

To speak to a professional you can trust, get in touch with the team here at My Liquidation. Our licensed insolvency practitioners have years of experience advising struggling businesses of their next steps and can act accordingly should liquidation be the most suitable way forward for your business. 

Contact Us

I'm looking for more information on ...


Choose from the options below