Annual Report - 2024
Profit Warnings, HM Courts Filings,
and Initial Stage Winding Up Petitions.
New analysis from InfolinkGazette confirms the number of Insolvency notices and Company Profit Warnings continues to rise.
Profit Warnings
Figures released by InfolinkGazette confirm our Q1 prediction that company Profit Warnings would continue to remain elevated in 2024.
In 2022 Profit Warnings had already quadrupled to 386, rising from 65 in 2021.
We predicted a further increase in 2023 which was confirmed as numbers went up by another 23.5% on 2022, to a new high of 477 Profit Warnings during the course of 2023.
2024 has seen this negative trend continue as our data confirms there were a total of 482 Profit Warnings throughout the year with at least 208 instances of UK companies warning of a Material Uncertainty, accounting for nearly half of all Profit Warnings in the period.
105 warnings were instances where a company had revised their guidance, 12% of Profit Warnings cited impacted sales and, significantly, almost a fifth of Profit Warnings noted inflation and increased costs as the reason for the downturn in expectations.
Benjamin Sims, Managing Director at Tech City Labs, the company behind InfolinkGazette commented:
"2022 was a particularly difficult year and that trend continued in 2023. There were some signs of levelling off towards the end of 2023, but our prediction was correct and the overall picture shows that actually the trading storm has worsened in 2024.”
.png?width=590&height=333&name=image%20(4).png)
HM Courts filings
Debtor driven filings increased again in 2024 by nearly 3% year on year, from 2494 in 2023 to 2564 filings in 2024.
As expected, for 2024 we saw Notices of Intention to Appoint an Administrator (1141) and Notice of Appointment to appoint an administrator (1005) continue to make up the majority of notices filed.
Administration Applications fell by 17.6% from 226 in 2023 to 186 in 2024, while in contrast Company Voluntary Arrangements were up by over 28% from 167 in 2023 to 214 in 2024.
.png?width=705&height=373&name=image%20(8).png)
Initial stage winding-up petitions
InfolinkGazette published figures showed yet another increase in Initial Stage Winding Up petitions in 2024. There were 7043 filings in 2024, up by 8.5% compared to 6494 filings the previous year.
S. Kaler, Head of Data & Operations at InfolinkGazette commented:
“The increase in Winding up Petitions continues to be driven primarily by HMRC actioned filings. Numbers rose from 2856 petitions in 2023 compared to 3247 petitions brought by HMRC in 2024. Although the overall number of Winding Up Petitions not initiated by HMRC increased in 2024 when compared to the previous year, this represented a reduction from 56% of all petitions filed in 2023 (3638) to 53% of all petitions filed in 2024 (3796). Clearly, the situation remains tough for many businesses.”
.png?width=590&height=355&name=image%20(6).png)
InfolinkGazette collates this information and provides it to our clients as soon as it is available. For more information visit our product page: https://www.techcitylabs.com/infolink-gazette or write to us at: sales@infolinkgazette.co.uk
To get everything you need to know:
Want to get the best of Infolink in a daily, easy-to-read format? Sign up for a free trial of Infolink Daily: everything that's happening in insolvency, delivered to your inbox every morning.
Stay in the know!
Follow us on LinkedIn to stay up-to-date with our latest news and products.