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Latest quarterly insolvency data

ended 31. January 2023

Following official Insolvency Service data showing a sharp spike in corporate insolvencies in December, we're getting the latest quarterly insolvency data this morning at 09:30. Few Qs for you.

  • Are you seeing more companies struggling financially?
  • What are the primary challenges companies are facing in the current economic climate?
  • Do you expect the number of businesses going bust to rise in 2023?
  • Are HMRC and the banks tightening the screws on businesses?

Any other insights, jot them down. We'll be issuing your responses to the national, trade and relevant local media this morning. If you're a Premium user, your response will be edited and appear at the top of the news alert.

3 responses from the Newspage community

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Editor
Samuel Mather-Holgate
Independent Financial Adviser at Mather and Murray Financial
One of the few sectors to have a bumper 2023; insolvency practitioners. Confidence in the economy is weak as all data shows slowing GDP and stubbornly high inflation. I expect demand to continue to fall away and unemployment to rise for the rest of the winter and spring. Higher interest rates will further contribute to companies going to the wall, the question is how many will the government let this happen to before they offer some substantial support? I fear, the Tories are paralysed and inaction will lead to a more severe recession with a larger number of liquidations than necessary.
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Ian Hepworth
Director at Funding Solutions UK Limited
We are seeing more and more companies struggling as they are enveloped by a perfect storm of rising costs, disrupted supply chains and reduced supplier credit. HMRC are also looking for tax arrears to be repaid and seem less helpful on time to pay arrangements. The whole business finance market has tightened up its credit policies. Valuations on assets are coming in lower and the percentage that lenders are willing to lend against the assets is reducing in many cases. It's a real double whammy.  The banks made a point of supporting businesses through Covid and beyond in an attempt to right their wrongs from the financial crisis a decade before. However, they too are now withdrawing support.
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Mark Grant
Business Finance Adviser at The Business Finance Branch
It's brutal out there right now. In the fourth quarter of 2022 and into 2023, we have seen an increase in businesses fearing that administration may become an inevitability, as their cash flow position has deteriorated so seriously in recent months. Instead of simply not being profitable, they are in some cases out of cash full stop and not able to meet the fixed overheads and staff costs that enable them to operate. Businesses that can smooth out cash flow and remove the large, one-off cash calls in favour of lesser, but more regular income and outgoings, will stand a better chance of riding out the current economic headwinds.