UK Company Insolvencies

How to Spot a High-Risk Client

The Arcadia Group, Carillion, P&O Ferries — insolvencies and financial problems can appear sudden and unexpected, but if you used Red Flag Alert’s insolvency risk solution, you would see that these companies were showing red flags months and even years before their downfall. Find out what they had in common in our how to spot a high-risk client mini-series.

P&O Ferries' ratings showing red flags in advance of March 2022 layoffs

Learn how to spot high risk clients to avoid bad debt


UK insolvencies are rising

Corporate insolvencies jumped 20% as inflation and higher interest rates eat into business profitability. Who will float and who will sink? The answer is not always as simple as good accounts and a decent payment history.

Company insolvency stats

According to the Insolvency Service, the number of registered company insolvencies in January 2023 was 1,671:

  • 7% higher than in the same month in the previous year (1,567 in January 2022), and
  • 11% higher than the number registered three years previously (pre-pandemic; 1,502 in January 2020).

See more in Monthly Insolvency Statistics, January 2023.

Sources: Insolvency Service (compulsory liquidations only); Companies House (all other insolvency types)


Stay up-to-date with the latest company insolvencies

Over 5 emails you will learn how to spot a high-risk client even when typical metrics show the company to be in pristine financial standing.