Insolvency-related activity in Hampshire and the South East has risen by more than 23 per cent for the second consecutive month.
This is according to R3, the UK’s insolvency and restructuring trade body.
R3's analysis of Creditsafe data shows the number of insolvency-related activities increased from 212 in February to 262 in March.
This includes administrator and liquidator appointments and creditors' meetings.
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Neil Stewart, chairman of R3’s Southern and Thames Valley region, said: "Economic volatility shows no sign of abating and the escalation of global trade tensions through tariffs adds complexity to an already fragile landscape.
"As a result, business confidence remains subdued.
"My concern is that this continued economic uncertainty puts more businesses at risk, leading to director fatigue and insolvencies, which could result in higher unemployment and a challenging cycle that is difficult to break."
The Southern and Thames Valley region includes Kent, Surrey, Sussex, Buckinghamshire, Oxfordshire, Hampshire, the Isle of Wight, Dorset, Wiltshire and Berkshire.
Despite the gloomy outlook, Mr Stewart, a regional associate director at insolvency litigation financing company Manolete Partners Plc, offered some reassurance.
He said: "Even for struggling businesses there is still hope.
"Our message to directors is this: stay alert to the warning signs of financial distress and seek advice as early as possible.
"These signs might include maxed-out borrowing facilities, persistent cashflow problems, supply chain disruption, delayed wage payments, overdue invoices and pressure from HMRC on tax arrears."
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He added that most R3 members offer a free initial consultation, allowing business owners to understand their situation and explore practical solutions.
The most recent Creditsafe data indicates an increase in the number of companies with overdue invoices, rising from 59,411 in February to 59,822 in March.
However, the number of invoices that had gone past their due date has decreased from 562,619 in February to 537,984 in March.
Meanwhile, the number of start-ups in the South East has seen a dramatic increase from 5,559 in February to 6,482 in March.
April 2024’s figure of 8,050 was the year's highest.
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