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Insolvency Update: August 2024
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The Insolvency Service has released the latest statistics for August 2024, offering key insights into the state of insolvency in the UK. These figures are essential for businesses looking to understand the current economic climate and adapt accordingly.
Key Highlights for August 2024:
- Total Company Insolvencies:
There were 1,953 company insolvencies, representing a 9% decrease from July 2024, and a 15% decrease from August 2023. - All types of company insolvency were lower in August 2024 compared to July 2024.
Breakdown of Insolvency Types:
- Creditors’ Voluntary Liquidations (CVLs):
- 1,542 cases, down 7% from July 2024.
- While showing a monthly drop, CVLs remain the dominant form of company insolvency.
- Compulsory Liquidations:
- 279 cases, a 12% decrease from July 2024, but 6% higher than August 2023.
- Administrations:
- 112 cases, a significant 25% decrease from July 2024.
- This sharp decline suggests fewer companies opted for administration in August.
- Company Voluntary Arrangements (CVAs):
- 20 cases, marking a 20% decrease from the previous month.
Yearly Comparison of Insolvency Types (August 2023 vs August 2024):
- Overall Insolvencies:
August 2024 saw 333 fewer cases than August 2023, reflecting a 15% decline. - Year-on-Year Insolvency Trends:
- Compulsory Liquidations: Increased by 6%.
- Creditors’ Voluntary Liquidations: Decreased by 15%.
- Administrations: Dropped by 40%, indicating a significant reduction in this type of insolvency.
- Company Voluntary Arrangements (CVAs): Surged by 82%, highlighting a growing preference for structured recovery agreements.
Month-on-Month Comparison (July to August 2024):
- Overall Insolvency Figures:
August 2024 saw a 9% decline in insolvencies compared to July 2024, with 191 fewer cases. - Month-on-Month Changes by Type:
- Compulsory Liquidations: Down 12%.
- Creditors’ Voluntary Liquidations: Down 7%.
- Administrations: Down 25%.
- Company Voluntary Arrangements (CVAs): Down 20%.
Insolvency Rate:
Between 1 September 2023 and 31 August 2024, one in 180 companies on the Companies House effective register entered insolvency. This equates to 55.5 per 10,000 companies, slightly higher than the rate of 55.4 per 10,000 for the same period in the previous year.
We encourage all credit management teams across the industry to stay vigilant and seek out the most valuable tools and information available. To learn more about how we can help you minimise risk and maximise cash flow, call in to speak with one of our experts today on 01527 518800.