Third quarter jump in administrations year-on-year

And, while the average monthly administrations for this year to date – 106 – is below the 116 figure seen before the pandemic, administrations are continuing on an upward trajectory. Meanwhile, compared to the same quarter in 2022, total monthly appointments for administrators are 30% higher with 337 companies entering in administration from July to September 2023.  

Overall, 2023 has seen 955 administrations take place so far – only 40 less than the 995 recorded for the entirety of 2022 – with the construction and manufacturing industries seeing the largest number of administrations this year, with 127 and 111 respectively.  

Food and drink businesses, meanwhile, have seen a substantial increase in administration appointments – going up by 83.6% when compared to last year.  

Kroll’s managing director Sarah Rayment said: “The cost-of-living crisis is also a cost-of-doing-business crisis, and this is evident from our company insights. We are yet to see the peak of company administrations and are likely to see a steady increase as the year progresses.  

“The cost of borrowing and the lack of access to working capital coupled with difficulties in passing on increased supplier and material costs will undoubtedly continue to leave companies incredibly vulnerable.   

“It is unsurprising that construction and manufacturing continue to lead the way with their traditionally low margins leaving little breathing space. Food and drink administrations are also on the rise as costs continue to increase and companies struggle to pass price hikes on to end customers.

 
“While there are steps companies can take to start mitigating cash flow issues and reliance on previous financial support, it is likely we will see the numbers surpass the pre-pandemic average by the end of 2023.”