Sussex insolvency-related activity remains steady

R3’s analysis of data provided by Creditsafe showed a very slight increase in insolvency-related activities from 172 in June to 178 in July – these include administrator and liquidator appointments together with creditors’ meetings.

This is the second lowest monthly figure (not including January stats where data is skewed) since October 2022. The 12-month high is 264 in August 2023.

The findings also revealed the number of firms in liquidation which owed money to their creditors in the South East dropped from 357 in June to 310 in July.

The South East figure for insolvency-related activities remains the sixth highest in the UK, behind Greater London, which has 521, the North West 449, East Anglia 273, West Midlands 256 and Yorkshire & Humberside also 256.

Neil Stewart, chairman of R3’s Southern and Thames Valley region, has welcomed the stability in regional insolvency-related activities.

He said: “I hope this ‘steadying of the ship’ in terms of regional insolvency-related activities in July marks the beginning of a downward trend, albeit that month-to-month volatility will probably continue.

“Despite encouraging signs, a great many businesses are being pushed into insolvency while others face ongoing difficulties and challenges. We also have to factor in the traditional summer slowdown.

“New Chancellor Rachel Reeves has ambitious growth targets and has pledged to drive sustained economic growth built on stability, investment and reform forged through a new partnership with the private sector. We await with interest to see how this pans out.

“Other factors such as international conflicts, ongoing industrial action and pay settlements, restricted consumer spending, interest rates still at five per cent despite the August cut, will play a role, but it just may be that the crisis is behind us with economic activity gathering pace.”

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 that businesses across the South and Thames Valley needed to continue to be on their guard.

“Our message to directors is simple: be alert to signs your business could be financially distressed and seek advice as soon as they show themselves.

“This means approaching a qualified and regulated source before matters become terminal – that is when liabilities exceed assets, with no realistic prospect of that position being reversed, and a company can be said to be insolvent.

“The earlier issues are addressed, the more options become available for a better outcome.”

The latest Creditsafe data shows a static picture in the number of companies with invoices that had gone past their payment date up slightly from 58,418 in June to 58,443.

Meanwhile, the number of late payments made by companies owing money has risen from 504,484 in June to 510,252 in July.

The number of start-ups in the South East has risen slightly, from June’s 5,215 to 5,558 in July. April’s 8,050 remain the highest monthly figure since December 2021.

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