PwC comments on May 2024's insolvency statistics

Commenting on the May 2024 company insolvency statistics, David Kelly, Head of Insolvency at PwC UK, said:

“The data shows that insolvencies dipped only slightly last month, although encouragingly it recorded a 21% decrease on May 2023, which holds the highest monthly figure since the financial crisis of 2008. The plateau over the last few months suggests that while the overall economic environment may have stablised, the continuing trend of high insolvency figures means many businesses still face significant financial pressure in the current market. 

“Although debt markets are active, lenders have shown themselves to be increasingly selective when determining which companies they are willing to support. As a consequence, due diligence processes are taking longer, which can put further pressure on already strained cash resources. It remains essential that businesses have a coherent business plan that addresses risks ranging from underlying wage inflation to supply chain operations.”

Ends

*May 2024’s corporate insolvency statistics reported 2,006 cases, marginally lower than April 2024's figure of 2,177.