Press release

26 Apr 2024 London, GB

EY comments on today’s Insolvency Service data for March 2024

The number of registered company insolvencies fell 17% year-on-year in March, however the number of company insolvencies remains higher than those seen during the pandemic and between 2014 and 2019

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Related topics Strategy and Transactions Restructuring and Turnaround Strategy by EY-Parthenon
Simon Edel, UK Turnaround and Restructuring Strategy Partner at EY-Parthenon:

“The number of registered company insolvencies fell 17% year-on-year in March, however the number of company insolvencies remains higher than those seen during the pandemic and between 2014 and 2019. 

“Beyond the official data, we’re seeing an increase in activity across the restructuring spectrum, including more balance sheet restructurings, asset sales and a rising focus on working capital as companies look to reshape their businesses in response to a changing market. Distress is also now impacting mid-market and larger corporates, as well as smaller businesses.

“Refinancing is likely to be a key hurdle for many businesses this year. Forecasts by EY-Parthenon estimate that in the next three years, £500bn of private and corporate debt will need to be refinanced by UK-listed companies, costing an additional £20-25bn in annual debt service costs. Although inflation is easing, companies should act now and focus on protecting their balance sheets by improving liquidity and access to working capital ahead of refinancing events, rather than waiting for interest rates to come down.”