Latest news with #insolvency
Reuters
4 hours ago
- Business
- Reuters
French heart prosthesis firm Carmat at risk of insolvency by end-June
June 20 (Reuters) - French heart prosthesis company Carmat ( opens new tab is in a critical financial situation and will be at risk of insolvency by the end of this month, it said in a statement on Friday. Carmat needs 3.5 million euros ($4.04 million) to avoid insolvency by the end of June, it said. It said it is actively exploring financing options and is launching a campaign seeking donations through an online platform. ($1 = 0.8673 euros)
Bloomberg
12 hours ago
- Business
- Bloomberg
Insolvencies Jump to 11-Month High as UK's Tax Hikes Take Toll
The number of companies going bust in England and Wales rose to the highest in 11 months as firms struggled with the Labour government's tax hikes and a broader slowdown in the economy. Insolvencies rose to 2,238 in May, a 15% jump from a year earlier, the government's Insolvency Service said on Friday.
Yahoo
13 hours ago
- Business
- Yahoo
UK construction SMEs struggle to access finance: BFS Report
Despite growing confidence in future sales, UK construction SMEs are facing significant financial headwinds, with access to external finance tightening just as cost pressures and bad debt levels rise, according to new research from Bibby Financial Services (BFS). The report, based on BFS's Q1 2025 SME Confidence Tracker, reveals a mixed picture for small and medium-sized firms in the construction sector. While 67% of construction SMEs expect sales to rise over the next 12 months — up from 57% a year ago — more than half (51%) say it has become harder to secure external finance, the highest proportion of any sector surveyed. This access-to-finance gap comes at a time when construction SMEs are dealing with persistently high costs for materials and labour, complex contract terms, and a growing burden of bad debt. BFS data shows these firms have written off an average of over £23,000 in the past year, and nearly one-third (29%) report insufficient cashflow to manage day-to-day operations. BFS Construction Finance ReportDownload The impact of elevated raw material prices, particularly timber and concrete, has been especially acute, with 72% of SMEs saying these pressures are directly eroding profitability. Small firms, often less able to hedge or absorb cost spikes, are also more exposed to supply chain disruption and inflation than their larger counterparts. Insolvency rates are rising as a result. Nearly one in five (18.1%) of all business insolvencies in England and Wales in March were from the construction sector, according to data from the Building Cost Information Service (BCIS). Despite the Government's Industrial Strategy pledging £100 billion in capital investment and a commitment to build 1.5 million homes over the next five years, smaller construction firms are sceptical. Four in ten (40%) doubt the Government's ability to support them effectively, with many concerned that the lion's share of benefits will flow to large main contractors. The situation is compounded by increasingly difficult access to finance. While the Government has identified improving SME finance as a key policy goal, BFS's research suggests the reality on the ground is diverging. Only 32% of construction SMEs say they use finance for day-to-day operations, but for many, that finance is now harder to obtain. 'The Government's commitment to invest in the construction sector may explain rising optimism,' said Derek Ryan, UK Managing Director at BFS. 'However, inflation, rising costs and restricted access to finance are squeezing margins and exposing small firms to greater insolvency risk. To unlock the full potential of the construction pipeline, SMEs must be given equitable access to opportunities and funding.' BFS's report also points to contractual dynamics that disproportionately impact smaller firms. Nearly half (48%) of construction SMEs find contracts difficult to understand, a figure that climbs to 56% among micro-firms with fewer than 10 employees. These businesses are often locked into rigid payment terms and report limited ability to negotiate, only 26% say they can influence contract terms, compared to 58% of larger small firms (10–50 employees). The Federation of Master Builders echoed the call for stronger SME support, warning that unless access to finance, skills and planning is improved, the sector's smallest firms will continue to face a systemic disadvantage. 'Small builders are showing remarkable resilience and optimism, but they face mounting challenges,' said Brian Berry, Chief Executive of the FMB. 'Access to finance is harder than ever, and planning policy too often favours large developers. If the Government wants to build more homes and boost local economies, it must ensure that SMEs aren't left behind.' As construction continues to be a cornerstone of the UK's economic recovery strategy, the message from industry and finance alike is clear: if SMEs are to help deliver the Government's growth agenda, greater financial accessibility and structural reforms must be prioritised. "UK construction SMEs struggle to access finance: BFS Report" was originally created and published by Leasing Life, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Independent
13 hours ago
- Business
- The Independent
Company insolvencies jump 8% after cost increases
The number of companies going bust across the UK increased last month after firms swallowed increased costs, according to figures. Official data from the Insolvency Service showed there were 2,238 company insolvencies in England and Wales in May. This was 8% jump compared with April, and 15% higher than the same month last year. The increase was driven by 1,734 creditors' voluntary liquidations, where company directors choose to shut a business down. There were also 354 compulsory liquidations, although this was 7% lower than the 10-year high reported in April. The Government body also recorded 136 company administrations and 14 company voluntary arrangements (CVAs). The rise in insolvencies comes after firms were hit by fresh tax increases in April, such as increased national insurance payments, as well as the rise in the national minimum wage. Mark Ford, partner in S&W's restructuring and recovery team, said: 'Businesses are now facing newer challenges that threaten their viability and this means we are likely to continue to see a steady stream of company insolvencies in the coming months. 'Higher costs resulting from increases to employer national insurance contributions, the minimum wage and business rates are all heaping considerable pressure on businesses, particularly those that feel they are unable to increase prices for fear of losing customers.' David Kelly, head of insolvency at PwC, said: 'The data reflects the persistent challenges, particularly in the construction and manufacturing sectors, and highlights that the financing position of many businesses remains fragile. 'This vulnerability can also be seen in some of the business and consumer sentiment surveys which are painting a very cautious picture.' Separate figures from the Insolvency Service showed that the number of personal insolvencies rose 5% year-on-year in May.
The Independent
13 hours ago
- Business
- The Independent
Personal insolvencies 5% higher in May than same month of 2024, figures show
The number of people going financially insolvent across England and Wales in May was 5% higher than the same month in 2024, according to Insolvency Service figures. In May 2025, 10,014 people entered insolvency, including bankruptcies, debt relief orders (DROs) and individual voluntary arrangements (IVAs), a total which was broadly unchanged compared with 10,060 insolvencies in April 2025. The Insolvency Service said DRO numbers have remained similar to the record high levels seen over the past 12 months, with 3,783 cases recorded in May. The report said: 'DRO numbers have been at record high monthly numbers since the abolition of the upfront £90 fee in April 2024, with the 45,802 DROs in the past 12 months being nearly twice as high as the long-term annual average.' In June 2024, DRO eligibility was expanded. The debt threshold was increased from £30,000 to £50,000 and the allowable value of an exempt motor vehicle was increased from £2,000 to £4,000. IVA numbers this year so far have remained in line with monthly averages seen last year. The report added: 'The 5,583 IVAs registered in May 2025 was similar to April 2025 and 13% higher than in May 2024.' With 648 cases recorded, bankruptcy numbers were 4% higher than in May 2024, but remained at less than half of pre-2020 levels. In addition to the formal insolvencies, there were 7,805 'breathing space' registrations recorded under the Debt Respite Scheme in May 2025 – 2% higher than in May 2024. Of the breathing space registrations, 7,684 were standard breathing space registrations and 121 were mental health breathing space registrations. The scheme gives people with problem debt a period of protection from their creditors, enabling them to access professional debt advice, without the stress caused by spiralling debt and looming enforcement action. A standard breathing space gives people with problem debt legal protections from creditor action for up to 60 days. A mental health crisis breathing space is available to those receiving mental health crisis treatment. It lasts as long as the person's mental health crisis treatment, plus 30 days. Households faced various bill increases in April, putting an additional strain on some people's finances. The number of company insolvencies in England and Wales was 2,238 in May 2025 – a 15% jump compared with May 2024. Monthly company insolvency numbers in the first five months of 2025 were slightly higher than in 2024 and at a similar level to 2023, which saw a 30-year high annual number of insolvencies, the Insolvency Service said. The company insolvency rate remains much lower than the peak of 113.1 per 10,000 companies seen during the 2008-09 financial downturn, the report said, adding: 'This is because the number of companies on the effective register has more than doubled over this period.'
