3 Important Messages From April 2023’s Insolvency Statistics

businessman pointing at statistics on a laptop screen

Every month, the Insolvency Service publishes a set of useful insolvency statistics for businesses. April 2023’s monthly insolvency statistics have now been released, confirming the number of company insolvencies last month and providing finer details about whether these were CVLs, administrations or compulsory liquidations.

Knowing how other companies are faring is useful no matter your business sector. Here are 3 important messages from April 2023’s insolvency statistics:

Total Number Of Company Insolvencies Less Than April 2022, But Higher Than Pre-Pandemic Levels

In April 2023, there were 1,685 registered company insolvencies. On a positive note, this figure is 15% lower than the same month in 2022. However, the number of registered company insolvencies still remains higher than the figures reported pre-pandemic. These numbers are also higher than insolvency levels during periods of recent Government support.

Compulsory Liquidations Have Doubled In The Past Year

One of the most striking messages from April 2023’s insolvency statistics is that compulsory liquidations have doubled year-on-year. During the coronavirus pandemic, compulsory liquidation levels were at record lows, April 2023 saw 183 as the number of winding-up petitions presented by HMRC increased. 

Number of CVLs Steadily Declining

Part of the reason that the total number of company insolvencies has declined slightly is due to a small reduction in the number of CVLs. 1,368 CVLs were reported in the latest monthly insolvency statistics, 23% lower than CVL numbers in April 2022. 

Why Do These Insolvency Statistics Matter?

Though compulsory liquidations are still on the rise, April 2023’s insolvency statistics show some positive signs for businesses. Despite a rapidly escalating cost-of-living crisis and increasing business energy bills, fewer company directors are choosing to opt for voluntary liquidation through a CVL. 

Should you be concerned about your business in the current economic climate, make sure that you do stay informed and seek the advice of a professional as soon as possible. A licensed insolvency practitioner, like our team at My Liquidation, can offer expert and personalised advice to help your business find solutions. Don’t hesitate to get in touch if you need help.

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