• Swindon & Wiltshire Economy
• Tuesday February 18 2025
• Author Name: Peter Davison

Insolvency-related activity decreases across Wiltshire and Thames Valley

Insolvency-related activity has decreased in Wiltshire and the Thames Valley, says R3, the UK’s insolvency and restructuring trade body.

R3’s analysis of data provided by Creditsafe showed a drop in insolvency-related activities from 203 in December to 172 in January.

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

This number is significantly lower than October 2024’s 293, which was the highest figure since March 2022.

The South East figure for insolvency-related activities is the fifth highest in the UK, behind Greater London, which has 384, the North West 313, East Anglia 236, and the West Midlands 202. There were decreases 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 has risen from 273 in December to 305 in January.

Neil Stewart, chairman of R3’s Southern and Thames Valley region – which includes Kent, Surrey, Sussex, Buckinghamshire, Oxfordshire, Hampshire, the Isle of Wight, Dorset, Wiltshire and Berkshire – said that although January’s figures look promising, the UK’s businesses faced continued pressures and cost challenges.

“While a reduction in insolvency-related activity is to be welcomed, January’s figures can be skewed due to the holidays.

“Our economic situation remains volatile, especially with the real threat of international trade wars on the near horizon. Company directors don’t need me to tell them that this is no time for complacency in the business world.

“Businesses also face the upcoming increase in the national living wage of 6.7 per cent and a tax rise in the form of higher employers’ National Insurance contributions (NICs) from April.

“Lower profit margins, higher prices, reduced investment and the potential for lower employment as a result may well lead to a subdued business climate in the short- to mid-term future.

“A recent British Chambers of Commerce survey, generally a reliable indicator, showed that 63 per cent of businesses now cite taxation as a concern, up from 48 per cent in a previous survey conducted before last autumn’s Budget.”

Neil, a regional associate director at insolvency litigation financing company Manolete Partners Plc, added: “It remains crucial that businesses across the South and Thames Valley seek expert help, guidance and support at the very first sign of business distress.

“The earlier such issues are addressed the more options are available, and the more time directors and decision makers have to decide their next steps.

“Most R3 members will give a free initial consultation and businesses who seek advice at an early stage of financial distress have a better chance of turning their situation around than those that wait till the problem has worsened.”

The latest Creditsafe data shows the number of companies with invoices that had gone past their payment date up has increases 58,910 in December to 59,324 in January.

Meanwhile, the number of invoices which had gone past their due date in the region has risen from 541,019 in December to 559,990 in January.

The number of start-ups in the South East has risen from December’s 4,301 to 5,813 in January. 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.

Latest: Insolvency-related activity soars by a quarter across Thames Valley and Wiltshire