Company insolvencies rise by 17% in February

The number of registered company insolvencies in February 2024 was 2,102, 17% higher than in the same month in the previous year (1,801 in February 2023), according to the recent Insolvency National Statistics.

This was higher than levels seen while the government support measures were in place in response to the coronavirus (COVID-19) pandemic and also higher than pre-pandemic numbers.

The company insolvencies consisted of 217 compulsory liquidations which is 35% higher than February 2023 and 1,707 creditors’ voluntary liquidations (CVLs) which is 12% higher than in February 2023.

Additionally, there were 166 administrations, which is 54% higher than February 2023 and 12 company voluntary arrangements (CVAs) which was the same as February 2023.

Sarah O’Toole, restructuring partner at PwC UK, said: “February’s insolvency figures of 2,102 showed a material increase on January 1,769 and are 17% higher than those of February 2023 (1,801). This uptick was anticipated, as is usually the trend following January’s results.

“This is often due to the performance of many businesses during the holiday season, the results of which won’t have completely filtered through in January. However, if the trend continues to follow that of previous years, we would expect to see a more pronounced increase in March, where some of the highest monthly figures have appeared over the last five years.”

Toole added: “The outlook for businesses remains uncertain and although smaller companies have been more impacted to date, higher interest rates, persistent supply chain disruptions, and the cautious stance taken by lenders when assessing underlying risk, continue to pose significant challenges that larger corporations are also now having to face up to.”