Monthly company insolvencies increase 21% year-on-year

New data published today by the Insolvency Service shows the number of registered company insolvencies in November 2022 was 2,029. This was 21% higher than in the same month in the previous year (1,676 in November 2021), and 35% higher than the number registered three years previously (pre-pandemic; 1,505 in November 2019). The data published today also shows that there were 290 compulsory liquidations in November 2022, which is more than 5 times as many as there were in November 2021.

Claire Burden, Head of Advisory Consulting at Evelyn Partners and a Board member of the Institute for Turnaround comments

14 Dec 2022
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Monthly company insolvencies increase 21% year-on-year

New data published today by the Insolvency Services shows the number of registered company insolvencies in November 2022 was 2,029. This was 21% higher than in the same month in the previous year (1,676 in November 2021), and 35% higher than the number registered three years previously (pre-pandemic; 1,505 in November 2019). The data published today also shows that there were 290 compulsory liquidations in November 2022, which is more than 5 times as many as there were in November 2021. Claire Burden, Head of Advisory Consulting at Evelyn Partners and a Board member of the Institute for Turnaround comments:

“The year-on-year rise in the number of monthly company insolvencies can be attributed to businesses struggling to deal with post Covid debts, rising interest rates and inflationary increases failing to be passed onto already cost-wary consumers.

“We are seeing an increasing number of worried directors who are struggling to keep their businesses afloat. These are good companies but facing serious and continuing increases in energy costs, wage demands and interest rates. The vast majority of directors have never before faced these levels of inflation and are having to change their ways of working to assert more control.

“The insolvency stats remain concerning for one main reason: the sheer level of liquidations compared to ‘rescue’ insolvency procedures like administrations, where jobs are saved. This highlights that directors are leaving it far too late to take the steps needed to save jobs. This delay is not only having a wider economic impact through job losses, but also may cause a raft of claims against directors personally for failing to protect the interests of the company and its creditors.

“Insolvency is always the last option. Directors should be proactive, taking all action possible. We have distilled this into the 12 key activities that directors should prioritise in the lead up to 2023, to be recession ready.

About Evelyn Partners

Evelyn Partners is the UK’s leading wealth management and professional services group, created following the merger of Tilney and Smith & Williamson in 2020. With £62.2 billion of assets under management (as at 30 June 2024), we are one of the largest UK wealth managers ranked by client assets and the seventh largest accountancy firm by ranked by Group fee income (source: Accountancy Age 50+50 rankings, 2023).

We have a network of offices in 30 towns and cities across the UK, the Republic of Ireland and the Channel Islands. Through our operating companies, we offer an extensive range of financial and professional services to individuals, family trusts, professional intermediaries, charities, and businesses.

Our purpose is to ‘place the power of good advice into more hands’, and we are uniquely well-placed to support clients with both their personal financial affairs and their business interests. Our personal wealth management services include financial planning, investment management, personal tax advice and, through Bestinvest, we have a multi award-winning online investment service for self-directed investors. For businesses, our wide range of services includes assurance and accounting, business tax advice, employee benefits, forensics, fund administration, fund governance, recovery and restructuring and transaction services. 

For further information please visit: https://www.evelyn.com/

Disclaimer

By necessity, this briefing can only provide a short overview and it is essential to seek professional advice before applying the contents of this article. This briefing does not constitute advice nor a recommendation relating to the acquisition or disposal of investments. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication.

Issued by the Evelyn Partners group of companies (the “Group”) which comprises Evelyn Partners Limited and any subsidiary of Evelyn Partners Limited from time to time. Further details about the Group are available at: https://www.evelyn.com/legal-compliance-regulatory/registered-details