Insolvency-related activity fell slightly in Surrey and the South East last month, according to R3, the UK’s insolvency and restructuring trade body.
R3’s analysis of data provided by Creditsafe indicated a drop in insolvency-related activities from 233 in April to 223 in May.
The figures include administrator and liquidator appointments together with creditors’ meetings.
The South East figure for insolvency-related activities is the fifth highest in the UK, behind Greater London with 519, the North West 379, East Anglia 346 and the West Midlands 298.
The fall in the South East is part of a mixed bag nationally, mirroring decreases in the South West, the East Midlands, Yorkshire & Humberside, the North East and the North West, but at odds with big rises in London and the West Midlands.
Neil Stewart, chairman of R3’s Southern and Thames Valley region, cautioned that the second successive monthly fall, while welcome, should not be interpreted as a sign of economic stability.
He said: “Businesses still face considerable financial pressure. Challenges include an increased tax burden, escalating wages, supply chain problems and a range of both domestic and international disruptions.
Despite the ongoing turbulence, Neil pointed to some positive indicators: “We’ve seen interest rates ease, and the economy grew by 0.7% in the first quarter. The OECD’s forecast of 1.3% GDP growth for 2025 and predictions that inflation may settle at around 2% next year do offer a glimmer of hope.
“The CBI says a UK-US Economic Prosperity Deal, a new Free Trade Agreement with India and the newly announced ‘common understanding’ regarding UK-EU trade augurs well for the long-term.
“In the current climate, however, business confidence remains fragile and the appetite – and capacity – for driving meaningful investment seem particularly scarce.”
R3’s Southern & Thames Valley region includes Kent, Surrey, Sussex, Buckinghamshire, Oxfordshire, Hampshire, the Isle of Wight, Dorset, Wiltshire and Berkshire.
Neil, a regional associate director at insolvency litigation financing company Manolete Partners Plc, urged business owners across the South and Thames Valley to seek expert guidance and support early if there are signs of business distress.
Neil continued: “Warning signs include reaching borrowing limits, cash flow problems, delays in wage payments, supply problems, and HMRC chasing tax payments. Left unaddressed, these difficulties can escalate quickly and may result in some form of insolvency procedure.
“It’s vital to seek advice from a qualified, regulated professional as soon as possible. The earlier you act, the more likely you are to find workable solutions. Don’t let your business become another statistic.”
“Most R3 members offer an initial consultation free of charge, giving business owners a chance to understand their options before matters become critical.”
The latest Creditsafe data shows that the number of startups in the South East fell from 5,894 in April to 5,716 in May. The number of companies with invoices that had gone past their payment date fell slightly from 59,796 in April to 59,587 in May.
There was a small downturn in the number of number of invoices which had gone past their due date in the region – from 545,735 in April to 539,371.
