A total of 1,340 businesses filed for administration in 2022, a 56% increase compared to 2021, according to analysis by full-service law firm Shakespeare Martineau.

Construction, manufacturing and retail were the sectors worst hit, accounting for 39% of administrations. Greater London led the way with 20% of the filings, followed by the South East and North West (16% each), data from The Gazette Official Public Record has revealed.

While January (55) was the quietest month, administration numbers leapt to 160 in November – the most recorded for 28 months – before dipping to 120, 93 and 104 in April, May and June respectively.

While administrations are still yet to hit pre-Covid levels (1,794 in 2019), recession fears and the financial pressure on households and businesses means the worst is still yet to come, an insolvency and restructuring expert has warned.

Andy Taylor, Partner and Head of Restructuring at Shakespeare Martineau, said “The latest statistics show that the true costs of living and doing business are beginning to bite. Numerous headwinds – such as the cost of borrowing, and increasing energy, fuel and raw material costs – have become a new normal at this point and businesses are being pulled from every direction. Furthermore, while supportive in the main, pressure from lenders is increasing and HMRC is taking a firmer stance, seeking to cap levels of liability for non-payment of tax.”

“While the UK is perilously close to recessional phase, businesses must have a clear focus on cash flow and look to save costs where possible. Directors must continue to plan strategically for the ever higher costs of ‘doing business’.”

“For businesses to survive longer term, they will need to act now to address underlying issues. I cannot overstate how important it is to get to grips with matters at the earliest possible juncture and to take the appropriate professional advice, if needed. Taking a proactive approach will provide options and help to keep businesses afloat.”

“If things continue as they are, we expect to see an increase in businesses failures as they battle tough trading conditions. However, resilient businesses with a strong balance sheet and with the right planning and oversight in place, may well find opportunities for growth as we head further into 2023.”

Companies filing for administration in 2022
 By sector  By region
 Construction 208  Greater London 265
 Manufacturing 174  South East 213
 Retail 138  North West 212
 Real estate 95

 Yorkshire & The Humber

 Professional services 90  West Midlands 101
 Food and drink 87  East of England 94
 Financial 79  East Midlands 74
 Health and social 66  South West 68
 Utilities 61  Scotland 59
 Automotive/transportation 60  North East 50
 Information and communication 55  Wales 48
 Hospitality 53  Northern Ireland 18
 Others 51  British Isles 3
 Engineering 35
  Administrative 24
 Arts and entertainment 21
 Logistics 12
 Agriculture 10
 Mining and quarrying 10
 Public admin and defence 7
 Education 4


Source:  Credit-Connect UK