TruSolv’s Post

Today, the Office for National Statistics published the insolvency figures for August 2024, showing the number of registered company insolvencies at 1,953, lower than August 2023 and slightly lower than July 2024, comprising: 👉1,542 creditors’ voluntary liquidations 👉279 compulsory liquidations 👉112 administrations 👉20 company voluntary arrangements Mark Supperstone, Managing Partner at ReSolve, commented on the statisics: “There has been some volatility in the ONS insolvency statistics in recent months, but figures overall have remained persistently high. Although the statistics for August 2024 are notably lower than that of July 2024 and of the same month in the previous year, company insolvencies remain significantly higher than that seen during the COVID-19 pandemic and between 2014 and 2019. Despite a cut to the interest rates in August, the UK remains a difficult trading environment for SMEs." Read more: https://lnkd.in/eyubY_aS #ForwardWithReSolve #ONS #insolvency

Insolvencies remained “much higher” than levels seen during the pandemic, despite some renewed optimism. According to new data from the Insolvency Service, the number of registered company insolvencies in May 2024 was 2,006. That’s 6% lower than in April 2024 and 21% lower than in May 2023. However, the number of insolvencies is still significantly higher than levels seen during both the COVID-19 pandemic and between 2014 and 2019. In May, there were 271 compulsory liquidations, 1,590 creditors’ voluntary liquidations (CVLs), 126 administrations, and 19 company voluntary arrangements (CVAs). #News #NumberMill #Insolvencies

Now whilst the number of businesses entering into a formal insolvency process are declining relative to levels seen in 2023, the number of businesses continuing to face both significant and critical financial distress continue to rise. The latest Red Flag Alert publication for Q1 2024 states that 554,554 companies are experiencing significant financial distress, an increase of 30.8% and 2.7% compared to Q1 2023 and Q4 2023 respectively, and 40,174 companies are facing critical financial distress, an increase of 20.1% compared to Q1 2023 but a decrease of 14.5% compared to Q4 2023. It creates somewhat of a dichotomy. If financial distress levels are rising year on year but insolvency levels are not following a similar trajectory especially when it is considered that many of the 40,174 businesses experiencing critical financial distress are expected to enter an insolvency process in the next 12 months and if half of these were to enter insolvency it would see levels of insolvencies in 2024 in line with the record levels seen last year. I don’t think the picture is significantly more rosy than these reports make out. As I have alluded to before there is significant uncertainty that remains and businesses are either not out of or slowly being pulled into the woods of financial distress. But I do feel like this is similar to the predictions of the ‘tsunami of insolvencies’ many anticipated in the early days of the pandemic that haven’t quite materialised as the increase has been more gradual and sustained. #insolvency #businessrecovery #restructuring #turnaround #business #finance #financialdistress #accountant #london

More than half a million UK companies are in “significant” financial distress, and more than 40,000 in “critical” distress, according to insolvency experts Begbies Traynor’s latest “red flags” report. The report found that 554,554 companies were in distress, up more than 30% from last year, and up a little from the fourth quarter of last year. The number of firms in “critical” distress was slightly lower than at the end of last year, but still very high by historical measures at 40,174. https://lnkd.in/e9M5y2rk

Despite a modest 16% drop in insolvency rates since January, the industry still faces high numbers of businesses with statuses like dissolved, in liquidation, wound up, or no longer trading. Download your free copy of the latest insolvency report by Insight Data to get more insights on the current state of the industry. https://lnkd.in/eSik3deM

If you want to know who is busy with new work, check out the report from Insolvency Australia

For many businesses, insolvency is no longer a distant threat, its an immediate concern. In 2024, ASIC reported over 6,600 businesses facing insolvency in just the first half of the year, with total insolvencies reaching nearly 23,000. And it's affecting all sectors—from construction to retail. Businesses are battling rising inflation, interest rates, and ever-tightening regulations. At ABL, we do things differently. Our model isn't based on credit scores and risk matrices. We focus on what businesses actually have: assets that are often sitting idle, waiting to be put to better use. The majority of the businesses we help come to us through accountants and brokers—professionals who see these struggles firsthand. They know their clients have the grit to keep fighting, but they need funding today to keep moving forward. Together, we’re making a real difference in a challenging market. We’re helping businesses that want to fight back, giving them a leg up to navigate these difficult times and find a path to more permanent solutions. If you’d like to learn more about ABL and how we can help your clients, book an introduction call with our team or read more via the links. Book an introduction call with our team: https://lnkd.in/grNK3bBb Find out more here: https://lnkd.in/gVdz9Htt #ownitfundit #assetbasedlending

Latest figures from the Insolvency Service reveal a concerning trend in business insolvencies, with a notable increase of nearly a fifth compared to the same period last year. https://lnkd.in/emM3akEu

In August there were 1,893 corporate insolvencies. This is the first time in four months where the total number of insolvencies in a month has been below 2,000. This does not surprise me. The summer months tend to be quieter when it comes to formal insolvency appointments. We saw this for example in the number of winding up petition hearings being much lower in August resulting in a drop in compulsory liquidations. But to me this is more a result of the time of year rather than an overarching change in financial fortunes. Creditors’ Voluntary Liquidations remain the driving force behind the still elevated insolvency figures, with all other insolvency types continuing to trend below pre pandemic averages. It still seems like the insolvency appointments continue to be dominated by the smaller end of the business spectrum. Whilst there is the occasional larger insolvency, as seen recently with TGI Fridays owner Hostmore and also Harland and Wolff, financial struggles and therefore insolvencies have not quite impacted the mid and larger portion of the SME market to the extent I personally expected. Although it only takes a few major insolvencies to start to trickle down into the mid-market. At least that is my opinion but always interested to hear the views and experiences of others. #insolvency #businessrecovery #restructuring #turnaround #business #finance #accountant #london