THERE was a big drop in corporate insolvencies in March, data has shown.

The figures, from R3, the trade body for restructuring and insolvency professionals, showed a marked decrease in the south and Thames Valley region.

Newly published statistics for England and Wales said that insolvencies were well down when compared to both February and March 2023.

Neil Stewart, chairman of R3’s Southern and Thames Valley region, said: “The biggest driver of the monthly and yearly fall in corporate insolvency numbers is a reduction in Creditors’ Voluntary Liquidations.

“However, numbers for this process and overall levels of corporate insolvency are still higher than they were pre-pandemic.”

Neil said the construction sector is experiencing the highest levels of insolvency.

“While the wider trading climate is a challenging one, there are signs directors expect revenues to increase this year,” he said.

“Overall, the mood of the business community seems to be increasingly positive.

“However, it remains to be seen whether inflation falls quickly enough to benefit businesses, and whether the hoped-for increases in income outstrip rises in costs and wages.

“Directors and business owners need to continue to be alert to the signs of distress, and act on any such indications as they present themselves. Cashflow problems, unplanned increases in stock, and difficulties paying taxes or invoices are all signs a business is financially distressed and in need of remedial action.”

Neil, a regional associate director at insolvency litigation financing company Manolete Partners, said the number of personal insolvencies has dropped to the lowest number in March since 2020.

He added: “We urge anyone who is worried about their finances to seek advice at the earliest possible opportunity.

“Money and money worries are two of the hardest topics to start a conversation about, but doing so at an early stage gives you more options and more time to decide on the way forward.

“Most R3 members will offer a free consultation to prospective clients so they can understand more about their circumstances and outline the potential solutions open to them to improve or resolve them.”