ICSM Insolvency Business News: insolvencies up by 16% in July latest figures reveal but it is a mixed picture of falls and rises in liquidations

By Harry Mottram: Statistics published by the Insolvency Service reveal it has been a mixed picture in terms of insolvencies in the last 12 months. The figures for July showed a total of 2,191 insolvencies, a 16% increase compared to July 2023 for England and Wales. Scotland also saw a big rise year on year for the same month with a 21% increase in insolvencies while across the water in Northern Ireland the figures show no real change.

There was a 27% increase in the number of compulsory liquidations compared to July of 2023 and in June the increase had been 4% year on year with construction and retail sectors worst hit.  Perhaps the most puzzling statistic is the fall in the number of CVLs in June although they did rise in July compared to the same month a year ago.

The Insolvency Service published these statistics for August which give a mixed picture.

After seasonal adjustment there were 1,953 company insolvencies in August 2024. This was 9% lower than in July 2024, but 15% higher than the number in August 2023.

In August 2024 there were:

• 1,823 creditors’ voluntary liquidations (CVLs)
• 279 compulsory liquidations
• 112 administrations
• 20 company voluntary arrangements (CVAs)
• 0 receiverships

CVLs

In August 2024, CVLs accounted for 79% of all company insolvencies. The number of CVLs was 7% lower than July 2024 and 15% lower than August 2023, after seasonal adjustment.

Compulsory liquidations

The number of compulsory liquidations was 12% lower than in July 2024, but 6% higher than in August 2023 after seasonally adjustment.

Administrations

The number of administrations was 25% lower than in July 2024 and 40% lower than in August 2023 after seasonally adjustment.

CVAs

The number of CVAs was 20% lower than in July 2024, but 80% higher than in August 2023 after seasonally adjustment.

Receivership appointments

There were no receivership appointments in August 2024. Receivership appointments are now rare with only two in the past 12 months.

Insolvency rate statistics for England and Wales – August 2024

The company liquidation rate in the 12 months to August 2024 was 55.5 per 10,000 companies on the effective register in England and Wales. This corresponds to 1 in 180 companies entering insolvency.

Company insolvencies by industry in England and Wales – August 2024

The three industries (in accordance with SIC 2007) that experienced the highest number of insolvencies in the 12 months to July 2024 were:

• construction (4,373 insolvencies, 17% of cases with industry captured)
• wholesale and retail trade and repair of vehicles (3,904 insolvencies, 16% of cases with industry captured)
• accommodation and food services activities (3,822 insolvencies, 15% of cases with industry captured)

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