Construction Worst Hit as Company Insolvencies Rise Again in June

THE NUMBER of registered company insolvencies in England and Wales in June 2024 was 2,361, 16% higher than in May 2024 and 17% higher than the same month in June 2023.

The number of company insolvencies remained much higher than those seen both during and in the five years before the COVID-19 pandemic.

Construction Insolvencies

Construction is the worst hit sector, registering the most insolvencies of any UK industry. It had almost one in five of all companies going out of business, with 17.3% of the total.

In the construction industry there were 4,287 company insolvencies in the past year to June 2024.

Businesses involved in specialist construction accounted for most insolvencies with 211 going out of business in May 2024 – the month with the latest breakdown of figures.

Specialist firms include those carrying out demolition and site preparation, building finishing, including trades and installers and other specialist activities.

Meanwhile, firms involved in the development of building projects and the construction of residential and non-residential buildings saw 126 insolvencies in May.

Insolvencies Rise Again

Companies going bust were made up of 302 compulsory liquidations, 1,866 creditors’ voluntary liquidations (CVLs), 170 administrations and 23 company voluntary arrangements (CVAs).

All types of company insolvency were higher than in both June 2023 and May 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 July 2023 and 30 June 2024.

This was an increase from the 55.1 per 10,000 companies that entered insolvency in the 12 months ending 30 June 2023.

Company insolvencies in 2023 and the first half of 2024 are at levels last seen during the 2008-09 recession.

Insolvencies are expected to continue to rise during Q3 in 2024.

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