April 2025 Insolvency Stats: Construction Continues to Feel the Strain

Published on 21^st May 2025

The latest insolvency data for April 2025 has just landed – and while there’s a slight dip from last year, signs of strain are still evident, especially in the construction industry.

2,053 companies entered insolvency across England and Wales – a 3% increase from March, but 5% lower than April 2024. While numbers have eased slightly compared to 2023’s 30-year high, overall volumes remain well above historical averages.

Breakdown of April 2025 Company Insolvencies:

• 1,544 Creditors’ Voluntary Liquidations (CVLs)
  
• 379 Compulsory Liquidations (the highest monthly figure since 2014)
  
• 105 Administrations
  
• 24 Company Voluntary Arrangements (CVAs)
  
• 1 Receivership
  

The 12-month rolling insolvency rate now sits at 52.5 per 10,000 companies, or 1 in every 190 businesses – a notable improvement from last year, but still cause for caution.

Construction: Still Top of the Insolvency Table

Once again, construction tops the list of hardest-hit sectors, with 4,111 company failures in the 12 months to March 2025 – 17% of all insolvencies with known industries.

This persistent trend reflects the tough environment many in the industry are navigating:

• Materials and labour remain costly, and project delays continue to wreak havoc on cash flow.
  
• Employer National Insurance rises have added to overheads, especially hitting smaller firms.
  
• And while some indicators (like interest rates) are showing signs of improvement, construction businesses are still under heavy pressure to maintain financial stability.
  

Our Take

We’re seeing more firms caught off guard – not necessarily due to bad management, but because warning signs are missed or action is taken too late. It’s no longer enough to simply “keep an eye on things.” Construction companies need to be more proactive than ever.

What You Can Do Next

In uncertain times, credit control becomes one of your strongest defences. We recommend:

• Monitoring your ledger for signs of payment stress – late payers are often the first signal something’s not right.
  
• Chasing overdue invoices quickly and consistently – don’t let cash slip through the cracks.
  
• Using professional support – our recovery team at Top Service knows construction. We’re specialists in securing payment quickly, professionally, and effectively.
  

Stay ahead. Minimise risk. Maximise cash.
We’re here to help – whether it’s insight, tools, or recovery.
📞 Call us on 01527 503990 or visit top-service.co.uk