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The number of companies filing for administration jumped by 25% over the course of 2023, according to analysis of notices in The Gazette by Interpath Advisory.
The report revealed that a total of 1,307 companies fell into administration in 2023 – up from 1,049 companies in 2022.
It attributed the rise in administration to price rises, sluggish growth, persistent high interest rates, and fragile consumer sentiment that continued to impact British businesses.
The analysis also stated that an uplift in administrations can be seen across a wide range of sectors, with companies operating in the retail, building and construction, leisure and hospitality, manufacturing, professional services, and real estate industries experiencing a notable number of appointments.
High profile insolvencies seen across the UK towards the end of 2023 included the administration of window retailer and manufacturer Safestyle UK and the administration of the Communisis group, a provider of transactional communications, procurement and marketing services.
Blair Nimmo, chief executive of Interpath Advisory, said: “The number of administrations continues to rise as the financial challenges of recent years take their toll on businesses. 2023 was a difficult year for many UK companies and, despite signs towards the latter end of the year that some of the prevailing economic headwinds might be starting to lessen, we’ve seen a steady and incremental uplift of insolvency activity over the course of the past 12 months.”
Looking ahead to the outlook for 2024, Nimmo added: “With industry bodies such as the British Retail Consortium and UK Hospitality warning of a challenging year ahead, ongoing geopolitical uncertainty, and the prospect of elections in both the UK and the USA, the outlook for businesses remains precarious.”
