Insolvency-related activity in Hampshire saw a slight increase last month.

According to R3, the UK’s insolvency and restructuring trade body, there were 196 insolvency-related activities in August, up from 178 in July.

These activities include administrator and liquidator appointments, as well as creditors’ meetings.

Despite the increase, this figure is significantly lower than August 2023, when 264 insolvency-related activities were recorded in the region.

The analysis, based on data from Creditsafe, also showed a decrease in the number of firms in liquidation that owed money to their creditors in the South East, dropping from 310 in July to 298 in August.

Neil Stewart, chairman of R3’s Southern and Thames Valley region, said: "The traditional summer slowdown tends to intensify economic challenges, but this year’s summer of sport, including the Euros and Olympics and, at times, some good weather have helped to reduce the problem."

He added that there is a feeling of more stability for businesses following July’s General Election.

However, Mr Stewart warned of ongoing economic challenges such as pay settlements, cautious customer spending, extra costs, supply issues, and poor cash flow management.

He said: "Businesses across the South and Thames Valley must nevertheless continue to be on their guard and remain alert to signs of trouble.

"If difficulties are identified early enough options other than spiralling into insolvency will remain on the table."

The latest Creditsafe data shows a small increase in the number of companies with invoices that had gone past their payment date, up from 58,443 in July to 59,189 in August.

This is the highest figure this year.

Meanwhile, the number of invoices which had gone past their due date in the region has risen from 510,252 in July to 520,801 in August.

Start-ups in the South East have decreased, from July’s 5,558 to 5,110 in August.

April’s 8,050 remain the highest monthly start-up figure since December 2021.

Mr Stewart concluded: "As we head into autumn, businesses that seek specialist advice might just find that recovery or restructuring is a creditable and possible alternative to insolvency.

"Hoping that the problem will go away or pumping more money into bad situations are unlikely to work.

"The answer is to move quickly and find a trusted, qualified and regulated advisor to help you find the best solution."