The latest Business Insolvency Index from Experian®, the global information services company, today revealed a fall in the rate of insolvencies among UK firms. During July, 1,776 companies (0.09 per cent of the business population) failed, compared to 1,962 companies (0.10 per cent) in July 2011.
Improvements were across the board, but the biggest improvements came from the UK’s largest firms, over 501 employees – from 0.15 per cent last July to 0.08 per cent this year – and also smaller firms with 11 to 25 employees – from 0.26 per cent last July to 0.19 per cent this year.
Max Firth, Managing Director, Experian Business Information Services, UK&I said: “Since March this year, when the insolvency rate peaked at 0.11 per cent, it has remained fairly stable – between 0.08 per cent and 0.09 per cent. The lack of any real increase is clearly welcome and this picture is unlikely to change in the near future.
“The figures continue to underline the importance of good insight into the financial risks associated with insolvencies among both clients and suppliers and how these issues can affect their business.”
Scotland sees rate fall to lowest in two years
Scotland has historically held some of the lowest insolvency rates, but after January 2012, Scotland’s insolvency rates were higher and more in line with the rest of the UK. During July 2012, however, Scotland saw the biggest month-on-month fall in its insolvency rate – from 0.09 per cent in June to 0.05 per cent in July – and is now at its lowest point since July 2010.
The non-food retail sector is the UK’s sixth biggest sector. Compared to its larger counterparts, it saw the rate of insolvencies fall the furthest – from 0.15 per cent in July 2011 to 0.10 per cent in July 2012.
The automotive sector saw 0.14 per cent of its population fail during July. It was one of the few sectors to see insolvencies increase when compared to 0.11 per cent in June 2012 and 0.10 per cent in July 2011.