1,747 insolvencies were registered in October 2024, 10% lower than in September 2024 (1,950) and 24% lower than the same month in the previous year (2,293 in October 2023).
However, the number of company insolvencies remained much higher than those seen both during the Covid-19 pandemic and between 2014 and 2019.
England and Wales company insolvencies in October 2024 consisted of 188 compulsory liquidations, 1,445 creditors’ voluntary liquidations (CVLs), 100 administrations, and 12 company voluntary arrangements (CVAs).
All types of company insolvency – apart from receivership appointments, which the government said are now rare – were lower than in September 2024.
One in 186 companies on the Companies House effective register – at a rate of 53.8 per 10,000 companies – entered insolvency between 1 November 2023 and 31 October 2024.
This was a decrease from the 56.5 per 10,000 companies that entered insolvency in the 12 months ending 31 October 2023.
Insolvency rates are calculated on a 12-month rolling basis as a proportion of the total number of companies on the effective register. The government said the 12-month rolling rates show longer term trends and reduce the volatility associated with estimates based on single months.
Company insolvencies peaked during the 2008-09 recession, following the gradual decline seen over the early 2000s. Volumes rose during 2018 and 2019, before falling to the lowest monthly volumes on record during the Covid-19 pandemic – when businesses were supported by CBILS loans and the furlough scheme.
Company insolvencies then increased during 2021 and 2022, with 2023 seeing the highest annual number of company insolvencies since 1993.
The five industries, in accordance with Standard Industrial Classification (SIC 2007), that experienced the highest number of insolvencies in England and Wales in the 12 months to September 2024 were construction (4,264), wholesale and retail trade; repair of motor vehicles and motorcycles (3,774), accommodation and food service activities (3,679), administrative and support service activities (2,424), and manufacturing (1,965) – which printing falls under.
In October 2024, there were 116 company insolvencies registered in Scotland, 18% higher than the number in October 2023. The total number of company insolvencies was comprised of 50 CVLs, 60 compulsory liquidations, five administrations, and one receivership appointment. There were no CVAs.
Meanwhile, there were 31 company insolvencies registered in Northern Ireland in October 2024, 15% higher than in October 2023. The total number of company insolvencies was comprised of 17 compulsory liquidations, 12 CVLs, one CVA, and one administration. There were no receivership appointments.
Shamil Malde, managing director in the Corporate Finance & Restructuring team at FTI Consulting, commented: “Consumer confidence has hit its lowest level since December 2023, due to lacklustre inflation-adjusted wage growth which may come under further pressure next year with potential rises in the energy price cap (to be announced 25 November 2024) and water bills (increasing on 1 April 2025).
“Combined with National Insurance Contributions increasing from 13.8% to 15.0% from April 2025, we expect this to drive an increase in financial distress in the first half of next year, especially among consumer-facing businesses and businesses with high payroll costs.”
The last few months have been a particularly torrid time for print, with major names like Ashford Colour Press, Northwolds Richardson Group, Sirane, RNB Group, Hamilton Adhesive Labels, H Charlesworth & Co – which traded as Charlesworth Press, Mailbox DM, Celloglas and many more all having to call in the insolvency practitioners.
According to government data, the number of UK company insolvencies in the area it lists as ‘Printing and service activities related to printing’ – have been rising over the past couple of years, with 79 insolvencies seen in 2020, 72 in 2021, 143 in 2022, and 148 in 2023.
The most recent data for this area shows there were 11 insolvencies in August 2024 and 13 insolvencies in September 2024.
For more analysis on this topic, see the briefing in the October/November issue of Printweek.
