Mick McAteer, Chair, Registry Trust
Tuesday, 15th July 2025
As business insolvencies continue to rise in England and Wales, early identification of financial distress is crucial to enable proactive intervention. Recent official data from the Insolvency Service shows company insolvencies in May 2025 reached 2,238 - up 8% from April and 15% from May 2024 - maintaining levels near the highs of 2023. Creditors’ Voluntary Liquidations (CVLs) dominate this figure, accounting for 77% of insolvencies, while compulsory liquidations, though slightly down from April’s 10-year high, remain elevated compared to last year.[1]
To give the most recent data some context, the current rate of insolvencies at 53 per 10,000 companies is still significantly lower than the peak of 113 per 10,000 in the 2008-09 recession.[2] The insolvency rate is lower, even though the number of insolvencies is higher, due to the number of registered companies more than doubling over the period. Nevertheless, there is no room for complacency as the number of insolvencies today is notably higher than it was five years ago.
Sectors most affected by insolvencies in the 12 months to May 2025 are construction, wholesale and retail trade/vehicle repair, and accommodation and food services.[3]
This challenging backdrop provides important context for Registry Trust’s unique insights, drawn from commercial judgment data and our insolvency study published in August 2022.
Our 2024 Commercial Judgment Data: Early Signs of Financial Strain
Registry Trust’s latest annual data revealed that commercial county court judgments (CCJs) in England and Wales rose sharply in 2024. The number of judgments increased 26% year-on-year, from 26,356 in Q4 2023 to 33,159 in Q4 2024. The total value of debt registered also increased by 20%, reaching £142 million in Q4 2024. The number of corporate business judgments increased even faster, by 34%. The value of corporate debt rose by 19%.[4]
Non-corporate business judgments saw a fall in numbers, down by 8%, but the total debt value rose by 26%, pushing up the average judgment value by 37%.[5] These shifts illustrate changing dynamics in business financial vulnerability.
Insights from Our 2022 Insolvency Study: The CCJ to Insolvency Journey
Registry Trust’s August 2022 insolvency study - which analysed commercial insolvency data from The Gazette matched with CCJs over six years - found a strong correlation between receiving a CCJ and subsequent insolvency. The study found:
- A significantly stronger link between a company having a judgment and going on to become insolvent.
- 35% of insolvent companies became insolvent after just one judgment, with an average of 213 days (7 months) between CCJ and insolvency.
- For companies with multiple judgments, the journey averaged 322 days (10.5 months).
- The value of the judgment inversely correlated with time to insolvency — higher debt judgments led to faster insolvency.
- Certain sectors, including events management, joinery installation, and manufacturing of non-domestic cooling equipment, saw the shortest CCJ-to-insolvency journeys. [6]
This research provides powerful early warning signals for creditors, suppliers, and stakeholders, identifying at-risk businesses well before insolvency events become public.
The Value-Added Role of Registry Trust Data
While official insolvency statistics give a crucial snapshot of companies in distress, Registry Trust’s commercial judgment data offers earlier, actionable insight — capturing financial difficulties at the stage where businesses begin to struggle with payment obligations.
By analysing judgment volumes, values, and sectoral trends, Registry Trust acts as a “canary in the coal mine,” providing stakeholders with a lead indicator that complements insolvency filings. This enables timely risk assessment and, potentially, a window for proactive support or intervention.
As the Insolvency Service data confirms ongoing pressure on UK businesses — with CVLs and compulsory liquidations remaining high — Registry Trust’s data-driven insights offer an essential tool for understanding and responding to financial distress in the market.
[1] Commentary - Company Insolvency Statistics May 2025 - GOV.UK
[2] Ibid
[3] Ibid
[4] https://registry-trust.org.uk/stats/q4-2024-statistics/
[5] Ibid
[6] https://registry-trust.org.uk/blog/journey-ccj-insolvency/