Surrey insolvency-related activity increases

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Insolvency-related activity has increased in Surrey and the South East, says R3, the UK’s insolvency and restructuring trade body.

R3’s analysis of data provided by Creditsafe showed a slight increase in insolvency-related activities from 207 in April to 232 in May – these include administrator and liquidator appointments together with creditors’ meetings.

The 12-month high is 266 in April 2023, and R3 has warned that the market remains volatile from month to month.

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Its findings also revealed the number of firms in liquidation which owed money to their creditors in the South East dropped sharply from 425 in April to 303 in May.

Here to help: Neil Stewart, of R3, has warned that the economic picture in Surrey remains volatileHere to help: Neil Stewart, of R3, has warned that the economic picture in Surrey remains volatile
Here to help: Neil Stewart, of R3, has warned that the economic picture in Surrey remains volatile

The South East figure for insolvency-related activities remains the the sixth highest in the UK, behind Greater London, which has 607, the North West 452, East Anglia 315, Yorkshire & Humberside 296 and the West Midlands 257.

Neil Stewart, chairman of R3’s Southern and Thames Valley region, said: “This rise in regional insolvency-related activities in May, following a significant decrease in April, underlines current volatility and that there remain mighty challenges ahead for many businesses.

“The still high number of insolvencies suggests that while the current economic challenges are continuing to hit businesses hard and are pushing an increasing number into insolvency, the insolvency trends are uneven.

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“We shall see what change the General Election may bring, but economic difficulties will still need to be faced by businesses throughout the region whichever political party is in power after July 4.”

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 there were tough times ahead and business leaders and directors needed to remain vigilant.

“It is crucial that businesses across the South and Thames Valley seek expert help, guidance and support at the very first sign of business distress.

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“Don’t let your business become a statistic. 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 up slightly from 58,224 in April to 58,516 in May. The 12-month high remains 60,831 in February 2023.

Meanwhile, the number of late payments made by companies owing money has risen from 481,725 in April to 509,784 in May.

The number of start-ups in the South East has decreased, from April’s 8,050 – the highest monthly figure since at least 2021 – to 4,988 in May.

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