Despite some recent months showing a decline in insolvencies, June’s figures have shown us that we are far from out of the woods yet. Increases from both May’s figures and the number recorded in June 2023 show that we’re still experiencing a dangerous time for UK businesses.
The Insolvency Service’s monthly report shows that June 2024 recorded 2,361 company insolvencies. This is a 16% increase from May’s number, and 17% higher than the same period the year prior. Perhaps a rise in numbers from last month, however, is to be expected given that May provided a relatively low figure.
At this halfway point through the year, though, it’s perhaps more helpful to look at longer-term trends that might be forming. The Insolvency Service report shows that for the 12 months preceding June 30th, there had been an increase in insolvencies from the 12 months beforehand. The latter half of 2023 did see a significant rise from the same half of 2022, and this seemed to bleed into January and February this year too.
“Hope going forward”
Looking just at the last six months, however, we can start to see a slight decrease instead. For the first half of 2022, England and Wales recorded 10,716 company insolvencies. The same period in 2023 saw 12,311 businesses become insolvent, while the last six months have accrued 12,290.
While the drop in numbers from last year is almost negligible (-21), it does show that insolvency numbers have stopped rising at least. As predicted in last month’s look at May’s insolvencies, we look likely to see a few up-and-down months occur before we can look forward to a meaningful decrease in numbers.
Senior Consultant and Client Manager at Forbes Burton, Ben Westoby, agrees that there are still some positives to be taken despite June’s high figures. He adds that “prior to the last few months, we’d seen an almost relentless rise in insolvencies, so recent reductions in those figures should not be dismissed out of hand. While June’s numbers alone won’t instil confidence in a turnaround in the country’s fortunes, the halt apparent in the last six months’ figures together provides plenty of hope going forward.
“I fully expect more rocky reports to be published throughout the rest of the year, but if we keep seeing the odd positive figures nestled among them, we may hopefully see a slow decrease happen”.
Is your business finding its bills trickier to pay?
June’s figures remind us all too well that insolvency is still a very real threat for a large amount of UK SMEs. If you’ve started to notice that bills are more difficult to pay, cash flow reserves are becoming stretched, or that takings are down, give one of our friendly specialists a ring.
With a range of solutions aimed at making life easier for business owners, Forbes Burton can help you to successfully navigate your current difficulties. Get in touch for a free consultation today to see how we can help. Call us on 0800 975 0380, or email [email protected] for your free consultation with no obligation.
