Experian reveals fall in insolvencies
Dec 28 2010 by Henryk Zientek, Huddersfield Daily Examiner
THE rate of business failures have fallen, latest figures reveal.
A survey by business information body Experian showed the rate of business insolvencies fell to 0.07% in November against 0.09% in the same month last year.
However, businesses in southern England faring better than their northern counterparts.
The South East, South West, Greater London and Eastern England were the four regions with the lowest rates – 0.06% – while Yorkshire, the North East – both on 0.10% and the North West on 0.09% experienced the highest rates.
The average financial strength score for UK businesses rose from 81.26 in November, 2009, to 81.31 in November 2010, – with the South East and South West continuing to hold the highest scores at 82.96 and 82.47 respectively.
Experian spokesman Max Firth said: “So far this year, the insolvency rate has enjoyed a period of relative stability.
“For the last five months it has drifted between the 0.07% and 0.08% mark, which is a more positive picture than last year.
“Despite the fall in business failures, there continues to be a north/south divide in the overall level of insolvencies. Regardless of location, all organisations should ensure they understand the financial health of those they do businesses with.”
Businesses with 101 to 500 employees led the fall in the insolvency rate, going from 0.016% to 0.11%.
The spirits, wine and tobacco industry saw the biggest increase to its financial strength.
