Companies from building & construction, industrial manufacturing and retail sectors dominated Yorkshire & the North East administrations in 2023 as cases rose by 15%, according to figures from Interpath Advisory.
Analysis of notices in The Gazette by Interpath shows that there were 178 administrations in 2023 across the region representing a 15% increase from the 155 cases seen in 2022. The most impacted sectors were building & construction (31 cases), industrial manufacturing (29 cases) and retail (21 cases), covering just under half (46%) of cases.
The figures reflect the overall national trend with administrations rising 25% over 2023 to 1,307, up from 1,049 in 2022 as sluggish growth, persistent high interest rates, and fragile consumer sentiment continued to impact British businesses.
The analysis also shows that the region accounted for nearly 15% of total administrations across the UK in the first month of the year, with 11 cases recorded in January 2024.
James Clark, Managing Director and Head of the Yorkshire team at Interpath Advisory, said: “The number of administrations continues to rise as the financial challenges of recent years take their toll on businesses.
“For many companies in Yorkshire, 2023 was difficult, despite signs towards the latter end of the year that some of the prevailing economic headwinds might be starting to lessen. We’ve seen a steady and incremental uplift of insolvency activity over the course of the past 12 months and the start of 2024 hasn’t provided much cheer for management teams in the region.”
Looking ahead to the outlook for the rest of 2024, James Clark concluded: “With the confirmation that the UK has tipped into recession, the outlook for businesses remains precarious. But it’s not all doom and gloom out there.
“Inflation is proving sticky but didn’t rise as many had expected, we have a resilient domestic labour market and there’s a lot of liquidity in the debt market, which means borrowers continue to have plenty of options. Nevertheless, 2024 will likely remain a period of elevated interest rates by historic standards, and weak consumer confidence will continue to impact those sectors already feeling the pinch.
“To navigate this, Yorkshire businesses should look to recognise warning signs and cash pinch points early and seek appropriate advice. The more time that is available to deal with the issues at hand, the more options and levers are available to pull.”
