Quarterly company insolvencies increase 30% year-on-year

Data published today by the Insolvency Service confirms that the number of registered company insolvencies for the quarter ending December 2022 was 5,995. This was 30% higher than in the same quarter in the previous year. This brought registered corporate insolvencies for the whole of 2022 to 22,109, an increase of 57% compared with 2021.

Lynne Blakey, a Director in the Advisory Consulting team at Evelyn Partners and a member of the Institute for Turnaround comments.

Lynne Blakey
Published: 31 Jan 2023 Updated: 31 Jan 2023

Quarterly company insolvencies increase 30% year-on-year

Data published today by the Insolvency Service confirms that the number of registered company insolvencies for the quarter ending December 2022 was 5,995. This was 30% higher than in the same quarter in the previous year. This brought registered corporate insolvencies for the whole of 2022 to 22,109, an increase of 57% compared with 2021. Lynne Blakey, a Director in the Advisory Consulting team at Evelyn Partners and a member of the Institute for Turnaround comments:

“The year-on-year rise in quarterly insolvency statistics is set in a period of rapidly increasing costs, significant wage pressure, high levels of political and economic instability and escalating interest rates as the Bank of England try and stem inflation.

 

“This comes after the backdrop of Covid restrictions and the associated impact on the economy. Businesses have emerged post covid significantly more economically vulnerable; having eaten through their cash reserves just to survive and often saddled with increased liabilities in the form of covid loans or HMRC arrears. Government support has ended and these liabilities now require to be repaid. Indeed, the figures out today show a year-in-year rise in compulsory liquidations of 356%, driven in part by increased HMRC petitions and bank action to recover outstanding Covid loans.

 

“Businesses within the consumer space including retail, hospitality and leisure, also face the impact of declining consumer confidence due to the squeeze in living standards coupled with reduced footfall resulting from recent industrial action around the country.

 

“In short, businesses are suffering. We are meeting with increasing numbers of directors and business owners who are struggling to deal with these increasing pressures. Whilst some are proactively seeking advice and help at an early stage, unfortunately many are still leaving it too late, with deteriorating performance and impending repayment deadlines limiting options available.

 

“With interest rates set to rise further this week, placing more pressure on debt burdened businesses and consumers alike, it is important that directors seek help at an early stage to help protect shareholder value and preserve jobs.”  

About Evelyn Partners

Evelyn Partners is the UK’s leading integrated wealth management and professional services group, created following the merger of Tilney and Smith & Williamson in 2020. With £59.1 billion of assets under management (as at 31 December 2023), 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

For further information please visit: www.evelyn.com