Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Insolvencies drop 15 per cent – but experts warn ‘we’re not out of the woods yet’

by May 17, 2023
May 17, 2023
Insolvencies drop 15 per cent – but experts warn ‘we’re not out of the woods yet’

Corporate insolvencies dropped off in April as business confidence seemed to improve but experts warned that the drop may not signal better times ahead.

According to new figures from the Insolvency Service, 1,685 companies went insolvent in April 2023, a 15 per cent fall on the same month the previous year. This was also down from the 2,457 insolvencies in March.

The drop off in insolvencies was driven by a fall in creditors’ voluntary liquidations (CVLs), by far the most common type of insolvency. CVLs were 23 per cent lower than last year.

PwC’s Carla Matthews said that “on the surface” these figures look “encouraging”, reflecting increased business confidence and a more optimistic view of the economic outlook. But Matthews warned that “we’re not out of the woods yet”.

“The trading environment remains challenging for business, and while energy costs are starting to drop, both inflation and the cost of servicing debt remains stubbornly high… the outlook for the rest of the year may still be turbulent,” she said.

David Kelly, also at PwC, said the pain was being felt most by smaller businesses. “Our analysis shows approximately 99 per cent of liquidations in the first quarter of this year have related to companies with annual turnover of less than £1m,” he said.

Individuals also saw lower rates of insolvency. There were 531 bankruptcies in April, five per cent lower than last year and less than half pre-2020 levels.

On average, 6,336 individual voluntary arrangements were registered each month in the three months to April, 16 per cent lower than the same period last year.

Despite the figures, president of R3 Nicky Fisher said the figures must be treated with “some caution,” arguing they reflect “a changing debt solutions market where options for individuals might not be as readily available as they might be”.

She suggested that there could be a “backlog of cases building up as a result.”

Read more:
Insolvencies drop 15 per cent – but experts warn ‘we’re not out of the woods yet’

0
FacebookTwitterGoogle +Pinterest
previous post
Technical and Fundamental Analysis on Lithium
next post
New HMRC figures show EIS investment grew 39% in 2021/22

You may also like

What does the budget mean for the ever-evolving...

April 2, 2024

Everything you need to know about mobile hotspots

September 26, 2023

Wetherspoon shares slide as soaring labour and energy...

March 21, 2025

Paycom Nationally Recognized for the Happiest Employees by...

October 10, 2024

Gold price rallies as safe haven asset is...

March 18, 2023

Dragons’ Den – Are we in or out?

April 24, 2024

The Dot-Com Bubble And Lessons Learned About Market...

April 21, 2024

Foolish not to review IR35’ ahead of General...

July 13, 2023

Rats learn to drive miniature cars and show...

November 20, 2024

Approvals for mortgages fall for fifth month in...

March 2, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump warns Rand Paul he’s playing into ‘hands of the Democrats’ with ‘Big, Beautiful Bill’ opposition

      June 1, 2025
    • White House urges Iran to accept nuclear deal as IAEA reports uranium enrichment spike

      June 1, 2025
    • Israel hostage deal in doubt as Hamas adds demands, US envoy calls terms ‘unacceptable’

      May 31, 2025
    • Iran condemns Austria over report on advanced nuclear weapons program

      May 31, 2025
    • Michelle Obama facing backlash over claim about women’s reproductive health

      May 31, 2025
    • Hamas agrees to release 10 more hostages

      May 31, 2025

    Categories

    • Business (8,105)
    • Investing (2,000)
    • Politics (15,453)
    • Stocks (3,119)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved