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UK Insolvency Insights: Annual Overview
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Annual Overview for 2024
In 2024, there were 23,872 registered company insolvencies, a 5% decline compared to 2023, which had recorded the highest number of insolvencies since 1993. The breakdown of 2024 insolvencies is as follows:
- 18,840 CVLs (79% of total insolvencies),
- 3,230 compulsory liquidations (14%),
- 1,597 administrations (7%),
- 202 CVAs (less than 1%), and
- 3 receivership appointments.
Annual Highlights:
- Decline in CVLs: CVLs dropped by 8% from their record-high levels in 2023. However, they remained the dominant form of insolvency.
- Surge in compulsory liquidations: These rose by 14% year-on-year to their highest level since 2014, reflecting increased creditor enforcement actions.
- Increases in administrations and CVAs: Administrations were up 2%, while CVAs rose 9%, albeit remaining below pre-pandemic averages.
- Insolvency rate: The insolvency rate in 2024 was 52.4 per 10,000 companies, a decrease from 57.2 per 10,000 in 2023, reflecting the growing number of registered companies.
Despite the decline in total insolvencies, 2024’s figures remain significantly higher than pre-pandemic levels, indicating ongoing economic pressures.
