UK Financial Risk Indicators

Whether you’re a financial professional, investor, or simply someone looking to stay informed about the state of the UK economy, we have the financial risk insights you need to make informed decisions.

Below is a selection of key statistics from the Company Watch database. Explore our comprehensive financial risk solutions here.

You can also view the official Government Insolvency Statistics here.

Data correct as of 3rd April 2025 Each month we will publish updated figures, so be sure to bookmark this page and check back for updates.

Total number of live companies

Warning Area definition

Any company with an H-Score® less than 25 falls into our Warning Area.

These companies are showing similar traits to companies that have failed in the past and are at serious risk of distress themselves. Not all companies in the Warning Area will go on to fail, but a high number do (around 60%).

% of companies in Warning Area by age

% companies in Warning Area by industry

Year-on-year % change - companies in Warning Area by industry

(May 2023 vs May 2024)

Total Zombie Companies

What is a Zombie Company?

Zombies are companies that earn just enough money to continue operating and re-pay the interest on their debt.

With rising interest rates in 2023, it is likely that many of these zombie companies will be forced into liquidation.

WUPAs vs NOIAAs

Winding Up Petition Application definition

A winding-up petition is a legal action that can be taken against a company by one of its creditors or by the government if the company owes money.

All petitions can be found in the London Gazette. Details of the document filed at the Gazette, including Gazette Entry Date, Event Description, Appointment Date, Practitioner Company, Practitioner Name and Court can all be found on our online platform.

Notice of Intention to Appoint Administrators definition

A notice of intention to appoint administrators is when the company files a document to the court to outline that it intends to go into administration if a solution cannot be found to its immediate financial problems.

Rapid Succession Company Creation Per Month

What is Rapid Succession?

The rapid movement of incorporation(s) either prior to or following insolvency action against a company where the new company or companies are linked to the company that experienced insolvency action by one or more common directors. Although the population of companies that meet these criteria are legitimate and of no legal concern, the population also includes legitimate phoenixisms (if incorporated and operated in accordance with the law), and a subcategory of illegitimate phoenixisms where the applicable law has not been followed or where the director(s) intend or intended to commit fraud.

Legitimate Phoenixisms – the practice of carrying on the same business or trade successively through a series of companies, as allowed by law, where each becomes insolvent (cannot pay their debts) in turn. Each time this happens, the insolvent company’s business, but not its debts, is transferred to a new, similar ‘phoenix’ company. The insolvent company then ceases to trade and might enter into formal insolvency proceedings (liquidation, administration or administrative receivership) or be dissolved.

Illegitimate Phoenixisms – any phoenix practice where the applicable law has not been followed or where the director(s) have intent to defraud. For example, intentionally transferring assets at lower than market value, exploiting phoenixisms to intentionally escape from debts.

Interest Cover <= 1.5 (latest period)

Interest Cover Ratio definition

Interest coverage ratio is calculated by dividing a company’s earnings before interest and taxes (EBIT) by its interest expense during a given period.

If a company has a ratio below 1.5, this indicates that the company may not have enough capital to pay interest on its debts.

Companies Issuing Profit Warnings

What is a Profit Warning?

A profit warning is an official statement to the stock exchange from a publicly listed company that says that it will report full-year profits materially below management or market expectations.

On average, one-in-five companies delist within a year of their third warning, most due to insolvency. Making companies that issue 3 or more warnings especially vulnerable.

EY publish a quarterly profit warning report which can be found here.