Everything You Need To Know From June 2023’s Insolvency Statistics
As is the case every month, the Insolvency Service has published its latest report detailing the current state of play in terms of company insolvencies in the UK. June 2023’s insolvency statistics provide valuable insights for businesses in all sectors, detailing the finer details and trends of insolvencies in June. They also provide information about bankruptcies and breathing room registrations.
Whether you are an employee or company director, these insolvency statistics provide a useful commentary on the current business climate and it is important to understand the key messages. Here is everything you need to know this month:
Compulsory Liquidation Levels Are Significantly Higher Than Last Year
Since the end of government support in response to the coronavirus pandemic, there has been an increase in the number of winding-up petitions issued by HMRC. This means that recent months have seen an increase in the number of compulsory liquidations being reported and this trend has continued in June 2023. There were 260 compulsory liquidations in June 2023, a figure that is a startling 77% higher than in June 2022.
Growing Gap Between Company Insolvencies And Individual Bankruptcies
Given that compulsory liquidation levels have risen year-on-year, it is unsurprising that this month’s insolvency statistics also report a rise in the overall number of registered company insolvencies. There were 2,163 registered company insolvencies in June 2023 which is 27% higher than the same month in 2022 and also up on pre-pandemic levels. In contrast, individual bankruptcies show a very different pattern as these figures are currently lower than pre-pandemic levels.
More Companies Need Breathing Room
One of the most interesting insights from June 2023’s insolvency statistics is the data provided on breathing space registrations. Breathing space registrations, also known as moratoriums, give insolvent businesses a 20-day reprieve from creditor action which can increase chances of survival. There were 7,936 breathing space registrations in June 2023, a figure that is 37% higher than the same month last year. Though this concerningly indicates that increasing numbers of businesses are in financial difficulty, it also suggests that many are hopeful that they can navigate their situation with the correct breathing room.
Why Do These Insolvency Statistics Matter?
June 2023’s insolvency statistics indicate that we are currently living and working in a very complex financial climate. It can be concerning to read that many businesses are currently navigating insolvency and financial distress, but there are many options available if you are concerned about the future of your company.
Pay attention to your business performance and schedule the appropriate time to reflect on year-on-year data. If you notice any signs of business failure, make sure you seek professional advice as soon as possible. The expert team at My Liquidation can help you to understand all of the options available to you, including the possible liquidation processes, so that you can make an informed decision about the next steps for your company. Get in touch today to speak to our licensed insolvency practitioners.
