Insolvency-related activity increases across Bucks and South East region

R3’s analysis of data provided by Creditsafe showed a rise in insolvency-related activities from 172 in January to 212 in February.

The figures include administrator and liquidator appointments together with creditors’ meetings.

The South East figure for insolvency-related activities is the sixth highest in the UK, behind Greater London, which has 463, the North West 359, East Anglia 313, the West Midlands 285 and Yorkshire & Humberside 223. There were increases in every region except Northern Ireland.

The findings also revealed the number of firms in liquidation which owed money to their creditors in the South East was virtually static, decreasing by just one from 305 in January to 304 in February.

Neil Stewart, chairman of R3’s Southern and Thames Valley region, said that after promising figures in January the downturn in February was disappointing.

“Ongoing cost challenges and external pressures are continuing to take their toll on companies across the region with chronic economic instability fuelling continued business distress.

“Directors and business leaders – particularly in leisure, hospitality and retail – are facing a crucial few months, particularly with the increase in the National Minium Wage and Employers’ National Insurance Contributions in April.

“Companies unable to offset the impact of the new legislation and regulations – perhaps through a combination of absorbing the extra costs, increasing their own prices, halting pay rises and stalling recruitment – may find themselves in trouble.

“The reduction in interest rates to 4.5% is welcome, but the Bank of England is predicting inflation, fuelled again by energy costs, will rise this year to 3.7%, which is unhelpful. That UK GDP is projected to rise by just 0.1% in Q1 this year tells its own story.

“The escalating threat of international trade wars, enhanced UK defence spending and predictions that the Chancellor will announce spending cuts in her spring statement on March 26 have led to more uncertainty in the business community.”

R3’s Southern & Thames Valley region includes Kent, Surrey, Sussex, Buckinghamshire, Oxfordshire, Hampshire, the Isle of Wight, Dorset, Wiltshire and Berkshire.

Neil, a Regional Associate Director at insolvency litigation financing company Manolete Partners Plc, added: “It is crucial that businesses across the South and Thames Valley seek expert help, guidance and support at the first sign of business distress.

“This situation can become irrevocable quickly, with some form of insolvency procedure becoming inevitable, so a swift response remains essential.

“Most R3 members will give prospective clients a free consultation so they can understand more about the problems they are facing and identify the options for resolving them.”

The latest Creditsafe data shows the number of companies with invoices that had gone past their payment date has remained almost static from January’s 59,324 to 59,411 in February.

Meanwhile, the number of invoices which had gone past their due date in the region has risen very slightly from 559,990 in January to 562,619 in February.

The number of start-ups in the South East has decreased slightly from 5,813 in January to 5,559 in February. April 2024’s 8,050 was the year-high.

Creditsafe is a multinational business intelligence provider with services including company credit scores and credit report information.