PwC comments on insolvency statistics for February 2025

David Kelly, Head of Insolvency at PwC UK, said;

“February saw 2,035 company insolvencies, which although an increase of 3% month on month, is still below the February 2024 figure of 2,188 – a positive sign that might temper some of the uncertainty felt by businesses as they look further into 2025.

“However, the cost of debt remains persistently high, significantly reducing the cash available for investment and other essential business activities, and consumer sentiment has struggled to recover. We are witnessing a trend where many failing businesses are mature, well-established companies; PwC analysis indicates that over 80% have been trading for more than five years.

“Our analysis highlights that the construction sector, in particular, continues to face severe challenges, with over 400 construction-related businesses failing during February. High input costs (both in raw materials and labour), and the inability to fully pass these cost increases onto consumers means tight margins are being further squeezed, leaving some businesses in a difficult position.”