LESS businesses in Yorkshire and the Humber experienced insolvency-related activity in January than at any time in the last 12 months, new research has claimed.
But, anecdotal evidence suggests "many businesses are hanging on by their fingernails" with more strife expected when energy costs rise again.
Restructuring trade body R3 carried out research based on an analysis of CreditSafe data, which showed there were 207 businesses in Yorkshire and the Humber experiencing insolvency-related activities – which includes liquidator and administrator appointments and creditors’ meetings – last month.
This was the least since January 2022 – when there were 150 business – and a 20 per cent fall from December (259).
R3’s analysis of the CreditSafe data also showed there was once again an increase in the number of business start-ups in Yorkshire and the Humber in January, rising by 34 per cent from 3,295 to 4,414 last month.
Eleanor Temple, Chair of R3 in Yorkshire and Barrister at Kings Chambers in Leeds, said: “The figures for January are less alarming than many feared, but perhaps mask some of the strain businesses are feeling.
“While it is reassuring, directors would be well advised to proceed with caution.
“Anecdotally, we are hearing that many businesses are hanging on by their fingernails and, with energy costs due to rise again after April 2023 when Government assistance is withdrawn, we fear there is likely to be a further spike in corporate insolvencies.”
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