news release

Business insolvencies fall in November, but North/South divide
remains

Nottingham, 22 December 2010 - The latest Insolvency Index from Experian®, the global information services company, has revealed that the rate of business insolvencies fell to 0.07 per cent in November 2010, down from 0.09 per cent in November 2009, with 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 per cent), while Yorkshire, the North East and the North West experienced the highest rates (0.10 per cent, 0.10 per cent and 0.09 per cent respectively).

The average financial strength score for UK businesses increased 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 - 82.96 and 82.47 respectively.

Max Firth, Managing Principal of pH, an Experian company, 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 per cent and 0.08 per cent 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 business with.”

Other key highlights include:
• Scotland was the only region to see an increase in failures going from 0.04 per cent in November 2009 to 0.07 per cent in November this year.
• Greater London is the region with the lowest financial strength score of 80.17.
• Businesses with 101 to 500 employees led the fall in the insolvency rate going from 0.016 per cent in November 2009 to 0.11 per cent in November 2010.
• The Spirits, Wine and Tobacco industry saw the biggest increase to its financial strength, going from 82.35 up to 83.09 in November 2010.
• The financial strength of businesses in the Food Retailing sector fell the furthest - from 77.66 in November last year to 75.78 this year, leaving it the sector with the lowest score.

 

Region

Insolvencies November 10

Insolvencies  November 09

% of business population failing Nov 10

% of business population failing Nov 09

Financial Strength

Score Nov 10

Financial Strength

Score Nov 09

Scotland

                 87

                 49

0.07%

0.04%

    81.16

         81.23

North East

                 42

                 51

0.10%

0.13%

    81.52

         81.26

North West

               164

               198

0.09%

0.10%

    80.75

         80.47

Yorkshire

               125

               150

0.10%

0.13%

    81.32

         81.40

Wales

                 44

                 45

0.08%

0.08%

    80.92

         80.77

West Midlands

               122

               167

0.08%

0.11%

    80.44

         80.17

East Midlands

                 89

               104

0.08%

0.10%

    81.67

         81.70

Eastern

               113

               140

0.06%

0.08%

    82.18

         82.30

South West

                 96

               105

0.06%

0.07%

    82.96

         82.70

Greater London

               322

               431

0.06%

0.09%

    80.17

         80.13

South East

               184

               194

0.06%

0.06%

    82.47

         82.55

Grand Total

            1,388

            1,634

0.07%

0.09%

    81.31

         81.26

Source: pH, an Experian company

 

Number of employees

Insolvencies November 10

Insolvencies  November 09

% of business population failing Nov 10

% of business population failing Nov 09

Financial Strength

Score Nov 10

Financial Strength

Score Nov 09

1-2

               193

               200

0.04%

0.05%

    82.56

         82.38

3-5

               213

               266

0.10%

0.12%

    81.92

         82.17

6-10

               211

               237

0.16%

0.18%

    81.67

         81.63

11-25

               196

               244

0.19%

0.24%

    81.42

         81.34

26-50

                 78

               103

0.16%

0.22%

    81.48

         80.85

51-100

                 34

                 48

0.12%

0.18%

    81.49

         80.40

101-500

                 29

                 43

0.11%

0.16%

    82.67

         81.55

501+

                   9

                 12

0.10%

0.13%

    85.23

         84.61

Unspecified

               425

               481

0.05%

0.05%

    80.43

         80.50

Grand Total

            1,388

            1,634

0.07%

0.09%

    81.31

         81.26

Source: pH, an Experian company

 

Sector

Insolvencies November 10

Insolvencies  November 09

% of business population failing Nov 10

% of business population failing Nov 09

Financial Strength

Score Nov 10

Financial Strength

Score Nov 09

Extractive Industries

                   1

                 -  

0.07%

0.00%

       82.86

            82.92

Oil

                   2

                   3

0.07%

0.09%

       85.97

            86.34

Building and Construction

               227

               246

0.13%

0.15%

       77.78

            78.26

Building Materials

                   4

                   7

0.11%

0.18%

       80.13

            79.91

Chemicals Industry

                   4

                   6

0.15%

0.21%

       81.89

            81.78

Diversified Industrials

                 31

                 34

0.14%

0.16%

       78.19

            78.61

Electricals

                 12

                 10

0.13%

0.11%

       79.57

            79.82

Engineering

                 47

                 66

0.12%

0.17%

       79.66

            79.78

Printing, Paper and Packaging

                 -  

                   3

0.00%

0.12%

       79.06

            78.78

Textiles and Clothing

                 17

                 26

0.12%

0.19%

       76.76

            77.30

Breweries

                 -  

                   1

0.00%

0.21%

       79.67

            80.36

Spirits, Wine and Tobacco

                 -  

                 -  

0.00%

0.00%

       83.09

            82.35

Food Manufacturing

                   6

                   6

0.09%

0.12%

       78.26

            78.30

Pharmaceuti-cals

                 -  

                   1

0.00%

0.11%

       82.31

            81.63

Wholesaling

                 63

                 96

0.10%

0.15%

       80.05

            80.24

Leisure and Hotels

               113

               105

0.13%

0.13%

       79.68

            78.98

Media

                 46

                 53

0.07%

0.08%

       80.82

            81.02

Food Retailing

                 17

                 17

0.11%

0.12%

       75.78

            77.66

Non-Food Retailing

                 69

                 78

0.08%

0.09%

       79.05

            79.39

Servicing/ Repair

                   3

                 15

0.04%

0.17%

       82.62

            82.25

Transport

                 54

                 61

0.10%

0.12%

       78.74

            78.53

Utilities

                   2

                   3

0.09%

0.16%

       79.83

            80.89

Postal and Telecoms

                   8

                 17

0.09%

0.20%

       76.55

            76.59

Agriculture, Forestry and Fishing

                   3

                 12

0.01%

0.06%

       85.28

            85.34

Banking and Financial Services

                 43

                 52

0.08%

0.10%

       84.17

            85.01

Health and Household

                 -  

                 -  

0.00%

0.00%

       79.04

            79.93

Business Services

               317

               362

0.06%

0.07%

       81.80

            81.59

Hiring and Leasing

                 17

                 12

0.12%

0.09%

       81.83

            81.23

Property

               104

                 98

0.07%

0.06%

       82.46

            83.89

Other Services

                 70

                 81

0.03%

0.05%

       86.14

            85.64

Plastics & Rubber

                 11

                   9

0.16%

0.16%

       78.26

            78.57

Insurance

                   6

                 15

0.05%

0.13%

       84.39

            85.20

IT

                 43

                 63

0.04%

0.06%

       83.75

            83.51

Motor Traders

                 32

                 51

0.09%

0.15%

       80.39

            80.07

Unspecified

                 16

                 25

0.01%

0.02%

       75.76

            73.39

Grand total

            1,388

            1,634

0.07%

0.09%

       81.31

            81.26

Source: pH, an Experian company

ENDS
Ms Serj Heera
PR Manager
0115 992 2773/07837 652169
serjeet.heera@uk.experian.com

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