Top Service News
📊 Construction Industry Update: Key Insights on Company Insolvencies
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In October 2024, company insolvencies dropped by 10% compared to September 2024, and were 24% lower than October 2023. However, insolvencies remain significantly higher than pre-pandemic levels, reflecting ongoing economic challenges.
October 2024 Breakdown:
Total Insolvencies: 1,747 (compared to 1,950 in September 2024)
🔻 Creditors’ Voluntary Liquidations (CVLs):
1445 cases, down 7% from last month, 83% of all insolvencies.
CVLs remain the dominant form of insolvency, reflecting ongoing financial challenges for businesses unable to restructure or secure financing.
📉 Compulsory Liquidations:
188 cases, reflecting a 14% drop from September
🚀 Administrations:
100 cases, Administrations saw the sharpest decline with numbers falling by 35% from September and 28% from October 2023.
🔽 Company Voluntary Arrangements (CVAs):
12 cases, down 29% from September
Insolvency Rates & Long-Term Trends:
12-month insolvency rate: 53.8 per 10,000 companies, down from 56.5 last year.
This translates to 1 in 186 companies entering insolvency over the past year
Although rates have risen since pandemic lows, they remain well below the 2008-09 recession peak of 113.1 per 10,000.
Construction Sector Impact:
The construction industry remains the most affected, with 4,264 insolvencies in the 12 months leading to September 2024, accounting for 17% of all cases.
This reinforces the vulnerability of construction businesses to cash flow issues, material price volatility, and market uncertainty.
📈 While insolvency numbers show month-to-month improvement, the construction sector must remain vigilant against broader economic pressures. Planning and resilience are key.
⚠️ Staying Ahead of Early Warning Signs ⚠️
We encourage all credit management teams across industry to stay vigilant and monitor early warning signs of financial distress. Having the right tools and insights can help minimise debt and maximise cash flow.
📞 Get in Touch
To learn how we can help your business, call us today to speak with one of our experts on 01527 503990. Let’s work together to navigate these uncertain times.