Key Takeaways From May 2023’s Insolvency Statistics
The monthly insolvency statistics are in and there is plenty to digest in the latest report from the Insolvency Service. May 2023’s insolvency statistics provide key information and insights for businesses looking to better understand the current financial climate and how it could impact them. The statistics include the number of UK company insolvencies in May and give details about whether these were compulsory liquidations, administrations or CVLs.
Here are the 3 key takeaways from May 2023’s insolvency statistics and why they might matter to your company:
Registered Insolvencies Are Higher Than Pre-Pandemic Levels
The stand-out figure from the latest monthly insolvency statistics is that there were 2,552 registered company insolvencies in May 2023. This figure includes all insolvencies, including compulsory liquidations and creditors’ voluntary liquidations (CVLs) and is 40% higher than the same month in 2022. Notably, the level of insolvencies in May 2023 was also higher than both pre-pandemic levels and insolvency figures during periods of government support in response to COVID-19.
Compulsory Liquidations Are Rising
The total number of insolvencies has partly risen due to a rise in compulsory liquidations. There were 189 compulsory liquidations in May 2023, a 34% year-on-year increase. This can be attributed in part to the rising number of winding-up petitions presented by HMRC post-pandemic.
CVLs & Administrations Are On The Up
CVLs have also increased in the last year, with 2,181 registered in May 2023. CVLs are the most common type of insolvency, so it is not surprising that there were considerably more of these than there were compulsory liquidations. However, this figure is still 38% higher than May 2022. Administrations have also increased at an alarming rate, with 80% more registered in May 2023 compared to May 2022. These figures indicate that growing numbers of companies are seeking professional help in response to signs of insolvency.
What Do These Insolvency Statistics Mean For Your Business?
These insolvency statistics can make for bleak reading, indicating that it is a tough and competitive time for businesses in most sectors. However, there is plenty that your company can do if it is facing or anticipating financial trouble. Staying informed and keeping up to date with statistics like these is vital, but you should also pay attention to performance and act quickly if your business is failing.
Get in touch with the licensed insolvency practitioners at My Liquidation at the first signs of trouble. Our expert team will help you make an informed decision, whether you need to enter into a voluntary liquidation process or simply understand what your options could be.
