LONDON (Reuters) - Company insolvencies in England and Wales fell sharply in March and recorded their lowest calendar-quarter total since the third quarter of 2022, official figures showed on Friday.
The Insolvency Service, a government agency, said 1,815 companies were declared insolvent in March on a seasonally adjusted basis, down from 2,177 in February and also 17% lower than in March 2023.
In the three months to the end of March, 5,759 companies were insolvent - 2% fewer than in the same period of 2023.
Personal insolvencies in England and Wales were down 9% on the year in March and were 19% lower than in February at 8,708, the Insolvency Service said.
British businesses have been under pressure from big rises in energy prices - which are now starting to ease - as well as higher staffing costs and official interest rates which are their highest since 2008.
"Beyond the official data, we're seeing ... 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," Simon Edel, a restructuring partner at EY-Parthenon, said.
"Distress is also now impacting mid-market and larger corporates, as well as smaller businesses," he added.
The rate at which companies are going insolvent is higher than in 2020 and 2021 - when the government provided emergency COVID-19 loans to businesses and there were restrictions on court-ordered liquidations - but remains well below the rates seen during the 2008-09 recession, the Insolvency Service said.
Insolvencies were commonest in the construction, retail and hospitality sectors, although the figures are not adjusted for the number of businesses in each industry.