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