Latest news with #BethanEvans
South Wales Argus
20 hours ago
- Business
- South Wales Argus
Overdue invoices in Wales hit 26-month high, research shows
The analysis of data provided by Creditsafe shows there were 156,775 overdue invoices on the books of Welsh businesses in April 2025 – the highest since February 2023's figure of 161,860. It was a 19.2 per cent increase on April 2024 when the total was 131,272. Overdue invoice numbers have risen consistently since November 2024, and April's figure was one per cent higher than March's total of 155,279. Bethan Evans, chairman of R3 in Wales, said: 'Late payment levels are now higher than they were in 2023 and 2024, when many businesses were grappling with the aftermath of COVID, rising costs, and the impact of the cost-of-living crisis.' The number of Welsh companies with overdue invoices on their books rose by 5.8 per cent in April 2025 when compared to the same period last year, rising from 17,849 to 18,879.
Business News Wales
a day ago
- Business
- Business News Wales
Overdue Invoices in Wales Hit 26-Month High
The number of overdue invoices on the books of Welsh businesses hit a 26-month high in April 2025, according to new research from R3, the UK's insolvency and restructuring trade body. R3's analysis of data provided by Creditsafe shows there were 156,775 overdue invoices on the books of Welsh businesses in April 2025 – the highest on record since February 2023's figure of 161,860, and a 19.2% increase on April 2024's total of 131,272. Overdue invoice numbers have risen consistently since November 2024, and April's figures were 1% higher than March's total of 155,279. Bethan Evans, Chair of R3 in Wales, said: 'Late payment levels in Wales have been high for some time, but their rise to the highest point in more than two years is a stark reminder of how difficult trading conditions have become. Late payment levels are now higher than they were in 2023 and 2024, when many businesses were grappling with the aftermath of COVID, rising costs, and the impact of the cost-of-living crisis. 'Further cost increases came into effect at the start of last month, including rises to Employers' National Insurance and the minimum wage, and these have been a major concern for businesses over recent months. Now that they're here, there's a real risk they could push more firms into cash flow difficulties, particularly in sectors already running on tight margins like construction, hospitality and retail.' The total number of Welsh companies with overdue invoices on their books also rose by 5.8% in April 2025 when compared to the same period last year, rising from 17,849 to 18,879. Bethan, who is a partner at Menzies LLP, continued: 'It's concerning to see not just that overdue invoice numbers are rising, but more businesses are finding themselves with overdue invoices on their books. When more companies are struggling to pay their bills on time, it has a knock-on effect across supply chains and makes it harder for others to stay on top of their own finances. 'April was a turning point for many businesses, and it's crucial that directors know how to spot the early signs of financial distress. If you're noticing problems like rising late or missed payments, falling margins, or mounting pressure from creditors, then it's likely time to speak to a professional. Seeking advice as soon as these issues arise can provide clarity, more time to address the situation, and potentially more options for resolving your concerns.'
4 days ago
- Business
Overdue invoices in Wales reach 26-month high, warns insolvency trade body
THE NUMBER of overdue invoices owed by Welsh businesses has surged to a 26-month high, according to new data released by R3, the UK's insolvency and restructuring trade body. R3's analysis of Creditsafe figures reveals that Welsh firms had 156,775 overdue invoices on their books in April 2025 – the highest monthly total since February 2023, when the figure stood at 161,860. This marks a 19.2% increase compared to April 2024, when the total was 131,272. Overdue invoices have been rising steadily since November 2024, with April's figure up 1% from March's total of 155,279. Bethan Evans, Chair of R3 in Wales and a partner at Menzies LLP, said: 'Late payments have been a persistent issue in Wales, but the fact they've now reached the highest point in over two years underlines just how tough trading conditions have become. These levels are now exceeding those seen in 2023 and 2024, when many businesses were still recovering from the pandemic, facing soaring costs, and grappling with the wider cost-of-living crisis.' Evans noted that new financial pressures came into effect in April, including increases to the National Minimum Wage and Employers' National Insurance contributions. 'These additional costs are likely to exacerbate cash flow challenges, particularly for sectors already operating on thin margins – such as construction, hospitality, and retail,' she added. The number of Welsh companies with overdue invoices has also climbed. In April 2025, 18,879 businesses reported overdue payments – a 5.8% increase on the 17,849 recorded in April 2024. Evans warned that the ripple effects of late payments could be far-reaching: 'When more businesses struggle to pay their bills on time, it disrupts supply chains and increases the financial strain on others. April marked a critical point for many companies, and it's vital that directors can spot the early signs of financial distress. 'If you're seeing warning signs – such as rising late or missed payments, shrinking margins, or mounting pressure from creditors – it's time to seek advice. Acting early can offer a clearer path forward, more options, and a better chance of resolving financial difficulties.'
Business News Wales
22-05-2025
- Business
- Business News Wales
'Increasing Costs and Uncertainty' Continue to Drive Corporate Insolvencies
Increasing costs and uncertainty are continuing to drive corporate insolvencies, the Wales Chair of insolvency and restructuring trade body R3 has said. Corporate insolvencies in England and Wales increased by 2.9% in April 2025 to a total of 2,053 compared to March 2025's total of 1,996, and decreased by 5.1% compared to April 2024's total of 2,163. Corporate insolvencies increased by 13.2% from April 2023's total of 1,813. Personal insolvencies in England and Wales increased by 7.9% in April 2025 to a total of 10,012 compared to March 2025's total of 9,282, and increased by 4.4% compared to April 2024's total of 9,586. Personal insolvencies increased by 8.2% compared to April 2023's total of 9,252. Bethan Evans, Wales Chair of R3, the UK's insolvency and restructuring trade body, said: 'April's corporate insolvency figures were the highest we have seen since July 2024. 'Creditors' Voluntary Liquidations remain the process companies most commonly enter into and their consistently high numbers reflect the ongoing challenges, high costs and political and economic uncertainty businesses face. It demonstrates the toll these challenges are taking on business finances and confidence in their ability to turn their situation around. 'Compulsory liquidations have also hit their highest level in more than five years as creditors chase down unpaid debts in an attempt to meet their own payment deadlines. This is led by HMRC as the Government attempts to balance the national books. 'Increasing costs and uncertainty are continuing to drive corporate insolvencies. April saw the introduction of the new rates for Employers' National Insurance Contributions and Minimum Wage, which have increased overheads for businesses at an already challenging time. Many businesses will have already increased prices and cut expenditure to try to maintain margins and cope with the existing economic challenges. SMEs in particular will find it increasingly difficult to respond to further cost increases. 'It is unlikely that we will see the full impact this will have on businesses until later in the year, but the prospect of these changes being introduced has influenced a number of directors' decisions to seek insolvency and restructuring advice and consider the future of their businesses. The recent increase in unemployment indicates that the tax increases, along with the Employment Rights Bill coming into force, has also affected hiring levels as management teams wait to see how it will affect their wage bills, and we expect this to continue until the picture is clearer. 'Alongside this, businesses have faced the impact of the introduction of US tariffs. While some of the outcomes from the President and Prime Minister's recent announcement will be a relief to businesses in a range of sectors, a number of tariff details still need to be confirmed. There is no denying their introduction will make it more expensive to export to America. The uncertainty and unpredictability around US trade policy generally is also likely to affect costs, growth and investment as both business owners and lenders assimilate the impact on revenue and profits. 'Looking across the economy, the sectoral picture is a mixed one. Construction continues to be sensitive to fluctuations in the price of materials, hesitancy of clients in commissioning new work and payment terms, while the care sector is trying to navigate how it will manage the Government's proposals to end overseas recruitment for social care visas. On a more positive note, retailers have benefited from the late Easter and improved weather, which has led to an increase in sales, and hospitality has also seen a rise in activity and spending levels. However, there is no escaping the influence the changes to National Insurance and Minimum Wage could have on business finances with more becoming financially distressed.' Bethan, who is a partner at Menzies LLP, continued: 'Turning to personal insolvencies, April's figures were the highest we have seen for this particular month since April 2020 – although the balance between the processes has shifted significantly since then due to changes in the Debt Relief Order (DRO) debt threshold, the administration fee and in regulations around how Individual Voluntary Arrangements (IVAs) are marketed. Compared to March 2024, personal insolvencies are up significantly, with more people entering IVAs and DROs in an attempt to help manage their debts. 'When these figures are combined with those applying for Breathing Space, they suggest that the debt problem in England and Wales, which has been building over the last couple of months, is starting to be reflected in the number of personal insolvencies. This month in particular, IVA and DRO numbers have increased, and Breathing Space numbers have fallen, which could be seen as a sign that more people need practical help addressing their debts than last month. 'April also saw increases in a range of household bills, and this may have been the final straw for those who were already struggling to make ends meet after years of rising costs. For those who are not in this position, it will have led to them taking a closer look at their outgoings and making adjustments to help balance their household budgets. Wage growth has slowed despite falling inflation which remains above the 2% target, and it is very clear that people's money does not buy what it did six or twelve months ago. 'My message to anyone in Wales who is worried about money is a simple one: seek advice as soon as possible. We know how hard it is to talk about your concerns about your finances, but having that conversation while your worries are new gives you more options to address them and more time to take a decision about your next step. Most R3 members in Wales will give prospective clients a free consultation so they can learn more about their circumstances and outline some of the potential options for addressing them.'
