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  • Writer's pictureOptimise

Company insolvencies drop 17% in March but remain unusually high

After seasonal adjustment, the number of registered company insolvencies in England and Wales in March 2024 was 1,815, 17% lower than in February 2024 (2,177) and 17% lower than the same month in the previous year (2,193 in March 2023).



Latest figures from the Insolvency Service show that company insolvencies in March 2024 consisted of 261 compulsory liquidations, 1,437 creditors’ voluntary liquidations (CVLs), 108 administrations and 9 company voluntary arrangements (CVAs). Numbers of all types of company insolvency were lower than in both March 2023 and February 2024.

One in 179 companies on the Companies House effective register (at a rate of 55.8 per 10,000 companies) entered insolvency between 1 April 2023 and 31 March 2024. This was an increase from the 53.5 per 10,000 companies that entered insolvency in the 12 months ending 31 March 2023. These 12-month rolling rates are calculated as a proportion of the total number of companies on the effective register to show longer term trends and reduce the volatility that would be associated with estimates based on single months.

Commenting on the latest insolvency figures, Mark Goodwin, Managing Director at Optimise said: "Company insolvencies in England and Wales fell sharply in March but the numbers remain unusually high.

“Although insolvencies are running at their highest levels in the construction, retail and hospitality sectors, our experience is that distress is impacting businesses across the board."

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