Insolvency-related activity decreases in South East

R3’s analysis of data provided by Creditsafe indicated a decrease in insolvency-related activities from 185 in July to 170 in August.

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

The South East figure for insolvency-related activities remains the sixth highest in the UK, behind Greater London with 452, the North West 426, East Anglia 318, the West Midlands 277 and Yorkshire & Humberside 205.

The rise in the South East broadly mirrors most of the rest of the UK, with decreases in nine regions, two remaining the same and an increase only in Wales.

Neil Stewart, chairman of R3’s Southern and Thames Valley region, including Hants, welcomed the slight decrease but cautioned against drawing firm conclusions from a single month’s figures.

He said: “I am encouraged by the dip in insolvency-related activity, which may be because business leaders are holding fire on voluntary liquidations in the hope of improved trading conditions in the near future.

“However, given the current economic volatility it may be a case of holding on for a while to see what happens next. We should have a clearer picture when autumn insolvency figures reveal how sectors such as hospitality, entertainment and retail have fared over the summer.”

Neil added: “Business owners and directors need a sustained period of growth to be able to take positive decisions on investment rather than considering cost-cutting.

“It remains to be seen whether this will be sufficient to outweigh business challenges such as increased taxes, inflation, wage demands, cautious consumer spending, energy costs, supply chain difficulties, creditor demand and HMRC enforcement on unpaid tax.

“With the Budget now confirmed for 26 November the business community will be watching closely to see what measures Chancellor Rachel Reeves introduces. Expectations are modest.”

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, urged business owners in Hampshire to remain proactive.

“It is vital to seek expert help, guidance and support at the first sign of financial distress. The earlier issues are addressed, the more options become available and the better the likely outcome.

“Most R3 members offer an initial consultation free of charge, giving business owners a chance to understand their options before matters become critical.”

The latest Creditsafe data shows that the number of start-ups in the South East fell from 6,281 in July to 5,657 in August. The number of companies with invoices that had gone past their payment date dropped from 61,462 in July to 57,935 in August.

There was an increase in the number of number of invoices which had gone past their due date in the region – from 515,681 in July to 528,263 in August.

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