The insolvency statistics for October 2023 were released on Tuesday 14th November 2023. Understanding company insolvency trends can be crucial for you and your business, below we delve into the data for October 2023 and breakdown the statistics into a useful Year on Year and Month on Month Comparison.
Year on Year Comparison
In October 2023, insolvency rates increased by 18% compared to October 2022, totalling 2,315 cases.
For October, there were 256 Compulsory Liquidations, 1889 Creditors Voluntary Liquidations (CVL's), 146 Administrations and 23 Company Voluntary Arrangements (CVA's).
An increase is evident across all company insolvency routes when comparing October 2023 with October 2022, with a notable increase of 297 cases in Creditors Voluntary Liquidations. Additionally, Compulsory Liquidations increased by 6 cases, Administrations by 39 cases and Company Voluntary Arrangements by 39 cases.
The breakdown of insolvency within the construction industry for October 2023 is yet to be released, however we can see a 7% increase in insolvency within the construction industry when comparing September 2023 with September 2022.
A Month on Month View
Insolvency rates for October 2023 increased by 346 cases (15%) when compared to the revised total for September 2023. Creditors Voluntary Liquidations appear to be the reason behind this 15% increase as they increased by 314 cases in October 2023.
In contrast to the September 2023 Insolvency Statistics (which can be found here) when comparing October 2023 to September 2023, the only insolvency method where a marginal decrease can be found is in Compulsory Liquidations which decreased by just two cases. Additionally, there was an increase of 21 cases in Administrations and an increase of 12 cases in Company Voluntary Arrangements.
Insolvency cases for companies continue to rise within the construction sector and therefore due diligence is no longer an optional requirement but a necessary feature for any business.
We recommend closely monitoring key supplier accounts and clients, seeking the assistance of a credit reference agency if you have not already done so and reviewing your credit management tools and processes carefully.