INSOLVENCY figures fell in May, but businesses across Wales remain under serious financial pressure, according to restructuring specialists.

Official figures show there were 1,868 corporate insolvencies in May 2026, down 10.5% from April and 16.3% lower than in May last year.

Andy McGill, restructuring and insolvency partner at Azets, which has offices in Cardiff, Swansea and St Asaph, said the fall was welcome but should not be mistaken for a sign that firms are out of difficulty.

He said: “Directors running out of fight, firepower and finance is still a problem, and creditors remain willing to turn to the courts to recover monies owed — and neither of these are going to change in the short term.

“The reality is that despite the fall in insolvencies compared to last month and last May, numbers are still high and businesses are still struggling, with many facing an uncertain future.”

Mr McGill said firms were being hit by a combination of geopolitical uncertainty, rising costs, political instability, a lack of affordable finance and creditors chasing overdue debts.

He added: “Unless the climate becomes easier and some way is found of lightening the cost load on businesses, it’s likely demand for advice and support will remain high in the coming weeks and months.”

Cost pressures continue

BUSINESSES are also facing rising employment costs, higher business rates and renewed pressure from energy bills.

Mr McGill said many firms were being “sandwiched” between their own higher costs and customers cutting back on spending.

He said the hospitality, retail and construction sectors remained among the hardest hit.

He added: “The fact that several household names have entered restructuring or insolvency processes recently shows the strain on the restaurant sector is becoming unbearable as the double blow of increased expenses and cautious consumers continues to affect it.

“Despite a rise in footfall and sales, retailers continue to be crushed by costs.”

He also pointed to the planned restructuring of TG Jones as evidence that even long-established high street names were not immune from financial distress.

Construction firms under strain

THE construction industry continues to face pressure from rising labour costs, higher material prices and late payment.

Mr McGill said tight margins and cashflow difficulties were pushing more firms towards financial distress.

He said: “Our advice to anyone who is worried about their business is to pick up the phone and speak to an adviser.

“It’s incredibly hard to voice your concerns about your finances, but the earlier you do, the more potential solutions you have open to you and the more time you have to consider how you move forward.”

Community event brought residents, businesses and town leaders together despite difficult weather

MILFORD HAVEN TOWN COUNCIL has thanked Pembrokeshire County Council for support through the UK Shared Prosperity Fund, which helped make this year’s Founders Day event possible.

The event, held in Milford Haven earlier this month, brought together residents, local businesses, community groups and civic leaders for a celebration of the town’s history, resilience and future.

Despite challenging weather, the day featured family activities, food stalls, music, entertainment, RNLI involvement and a strong community turnout.

The UKSPF support helped Milford Haven Town Council provide funding to Milford Haven Business Circle, which played a key role in delivering the event.

Town councillors said the day highlighted the strength of Milford Haven’s community spirit and gave local people and businesses an opportunity to come together, promote the town and build stronger connections.

Milford Haven Town Council said it was grateful to Pembrokeshire County Council for administering the UKSPF programme locally and for recognising the importance of events which support community development and economic growth.

The council added that it remains committed to working with partners on projects and events which benefit local people and contribute to the continued success of Milford Haven.

A FATAL train collision near Talerddig was caused when one passenger train failed to stop at a passing loop and entered a single-line section already occupied by another train, investigators have found.

A final report by the Rail Accident Investigation Branch has identified low wheel-rail adhesion, failed sanding equipment, train speed, and a lack of engineered overrun protection as key factors in the crash.

The collision happened at around 7:26pm on Monday (Oct 21), 2024, on the Cambrian line near Talerddig, Powys.

The 6:31pm Transport for Wales service from Shrewsbury to Aberystwyth, train 1J25, collided head-on with the 7:09pm Machynlleth to Shrewsbury service, train 1S71.

One passenger on train 1J25 suffered fatal injuries. Three others on the same train, including the guard, were seriously injured, and 18 people received minor injuries.

The driver of train 1S71 was also seriously injured, while the remaining five people on that train suffered minor injuries.

Investigators said train 1J25 should have stopped inside the Talerddig passing loop to allow the oncoming train to pass. Instead, it continued through the loop and entered the single-line section beyond.

By the time the collision happened, train 1J25 had travelled around 1,080 metres beyond its intended stopping position.

RAIB said the train was travelling at around 24mph at the point of impact, while the oncoming train was travelling at around 6mph. Neither train derailed, but both were extensively damaged and railway infrastructure at Talerddig loop was also damaged.

The line remained closed until October 28.

Low adhesion and failed sanding systems

The RAIB investigation found that train 1J25 passed its authorised stopping position because of a combination of factors.

Investigators said wheel-rail adhesion approaching the loop was low, although not exceptionally so for that area during October.

Two sanding systems fitted to the train, which could have helped improve grip and potentially avoid the accident, did not dispense sand.

The automatic sander did not work, probably because of electrical faults in its control circuit. The manually operated emergency sander was not activated by the driver.

The report also found that the train’s approach speed towards the eastern entry to the loop meant the level of braking needed could not be sustained with the grip available.

Once the train had passed its intended stopping position, it entered a section with exceptionally low adhesion and a steep downhill gradient. Although the brakes remained applied, the train did not slow as it approached the other service.

RAIB also found there were no engineered mitigations in place to prevent the train entering the occupied single-line section after the overrun.

Nine recommendations made

RAIB has made nine recommendations following the investigation.

These include improvements to the design, maintenance and testing of trainborne sanding equipment, a review of overrun risk on the Cambrian line, and changes to future software-based train control systems.

Network Rail has also been urged to improve its understanding of railhead treatment regimes and how these affect wheel-rail adhesion.

Transport for Wales Rail Limited has been asked to review driver training, while further recommendations cover emergency preparedness for on-train staff and the design of passenger train interior fittings to reduce injury risks in future accidents.

RAIB also identified a learning point relating to safety-critical communications between signallers and train drivers.

Andrew Hall, Chief Inspector of Rail Accidents, said: “The accident at Talerddig was a tragedy. One person lost their life and others were seriously injured in the first fatal train-to-train collision in more than 25 years.

“Widely varying levels of grip between steel wheels and steel rails is an inherent issue for railways and a lot of effort goes into managing this and its possible consequences.

“That can involve the way track and the surrounding area is maintained, the way trains and signalling systems are designed, and the way trains are operated and maintained.

“The Talerddig investigation found factors associated with several of these areas, and related to the way different parts of the overall railway system interacted.

“RAIB has made nine recommendations to reduce both the likelihood and mitigate the consequences of a similar event.

“I sincerely hope the lessons of this accident deliver lasting safety improvements on the Cambrian line, across the ongoing rollout of ERTMS, and on the wider railway network.”

RAIB stressed that its role is to improve railway safety and prevent future accidents. It does not determine blame, liability, or carry out prosecutions.