News release
North East sees business failures more than double from August to September
Nottingham, 26 October 2010 - The latest Insolvency Index from Experian®, the global information services company, has revealed that business failures in the North East of England more than doubled in the space of two months.
Although the UK-wide picture shows the insolvency rate fluctuating month by month, it still reveals an overall improvement in insolvency rates since early 2009. September saw a slight annual decrease (from 0.09 per cent to 0.08 per cent), but was up from the 0.07 per cent reported in August 2010.
Yorkshire was the only region to see an improvement between August and September. The insolvency rate for the East Midlands, West Midlands and Eastern England remained static, but the remaining regions all saw an increase. However it was the North East that saw the greatest increase - from 0.06 per cent in August up to 0.15 per cent in September.
Max Firth, Managing Principle of pH, an Experian company, said: “The North East of England’s business population is one of the smallest so every insolvency can dramatically affect the rate, which explains why we have seen a big variation between August and September. This underlines why businesses must be vigilant and closely monitor the financial health of every organisation they do business with.”
The overall financial strength score for businesses echoed the insolvency rate with a positive annual change and a negative monthly variance - up to 81.05 from 80.79 in September last year but down from 81.06 last month.
Other key highlights include:
• Yorkshire was the only region to see a drop in the insolvency rate since last month, going from 0.13 per cent to 0.10 per cent from August to September
• Eastern England was the only region, from the six in August 2010, to remain at 0.06 per cent into September leaving it the region with the lowest rate of insolvencies
• The largest companies, those with 500 or more employees, saw the greatest rise year-on-year in the insolvency rate (from 0.07 per cent in September 2009 to 0.16 per cent).
• Businesses with 6-10 employees saw the biggest annual drop in the rate of insolvencies from 0.21 in September last year to 0.16 in 2010. It was also the only sized business to see a quarterly drop from 0.17 per cent in August.
Region |
Insolvencies Sept 10 |
Insolvencies August 10 |
Insolvencies Sept 09 |
% of business population failing Sept 10 |
% of business population failing August 10 |
% of business population failing Sept 09 |
Scotland |
83 |
72 |
49 |
0.07% |
0.06% |
0.04% |
North East |
60 |
26 |
46 |
0.15% |
0.06% |
0.12% |
North West |
204 |
184 |
215 |
0.11% |
0.10% |
0.11% |
Yorkshire |
120 |
152 |
139 |
0.10% |
0.13% |
0.12% |
Wales |
50 |
44 |
43 |
0.09% |
0.08% |
0.08% |
West Midlands |
131 |
131 |
185 |
0.08% |
0.08% |
0.12% |
East Midlands |
96 |
99 |
122 |
0.09% |
0.09% |
0.11% |
Eastern |
111 |
106 |
153 |
0.06% |
0.06% |
0.09% |
South West |
104 |
93 |
123 |
0.07% |
0.06% |
0.08% |
Greater London |
371 |
287 |
368 |
0.08% |
0.06% |
0.08% |
South East |
234 |
197 |
251 |
0.07% |
0.06% |
0.08% |
Grand Total |
1,564 |
1,391 |
1,694 |
0.08% |
0.07% |
0.09% |
Source: pH, an Experian company
Number of employees |
Insolvencies Sept 10 |
Insolvencies August 10 |
Insolvencies Sept 09 |
% of business population failing Sept 10 |
% of business population failing August 10 |
% of business population failing Sept 09 |
1-2 |
467 |
376 |
477 |
0.05% |
0.04% |
0.05% |
3-5 |
205 |
190 |
221 |
0.05% |
0.04% |
0.05% |
6-10 |
256 |
233 |
260 |
0.12% |
0.10% |
0.12% |
11-25 |
206 |
218 |
269 |
0.16% |
0.17% |
0.21% |
26-50 |
234 |
206 |
264 |
0.23% |
0.20% |
0.26% |
51-100 |
99 |
89 |
100 |
0.21% |
0.19% |
0.21% |
101-500 |
46 |
37 |
56 |
0.17% |
0.14% |
0.21% |
501+ |
36 |
29 |
40 |
0.14% |
0.11% |
0.15% |
Unspecified |
15 |
13 |
7 |
0.16% |
0.14% |
0.07% |
Grand Total |
1,564 |
1,391 |
1,694 |
0.08% |
0.07% |
0.09% |
Source: pH, an Experian company
Sector |
Insolvencies Sept 10 |
Insolvencies August 10 |
Insolvencies Sept 09 |
% of business population failing Sept 10 |
% of business population failing August 10 |
% of business population failing Sept 09 |
Extractive Industries |
1 |
- |
- |
0.07% |
0.00% |
0.00% |
Oil |
- |
4 |
3 |
0.00% |
0.14% |
0.09% |
Building and Construction |
260 |
247 |
281 |
0.16% |
0.15% |
0.17% |
Building Materials |
8 |
3 |
5 |
0.21% |
0.08% |
0.13% |
Chemicals Industry |
2 |
3 |
2 |
0.07% |
0.11% |
0.07% |
Diversified Industrials |
32 |
41 |
48 |
0.15% |
0.19% |
0.22% |
Electricals |
12 |
11 |
14 |
0.13% |
0.12% |
0.16% |
Engineering |
45 |
50 |
68 |
0.11% |
0.12% |
0.18% |
Printing, Paper and Packaging |
7 |
6 |
8 |
0.23% |
0.19% |
0.32% |
Textiles and Clothing |
17 |
22 |
33 |
0.12% |
0.15% |
0.24% |
Breweries |
2 |
- |
1 |
0.42% |
0.00% |
0.21% |
Spirits, Wine and Tobacco |
1 |
- |
- |
0.21% |
0.00% |
0.00% |
Food Manufacturing |
3 |
12 |
13 |
0.05% |
0.19% |
0.26% |
Pharmaceuticals |
6 |
2 |
1 |
0.49% |
0.16% |
0.11% |
Wholesaling |
61 |
71 |
83 |
0.10% |
0.11% |
0.13% |
Leisure and Hotels |
113 |
105 |
107 |
0.13% |
0.12% |
0.13% |
Media |
73 |
47 |
56 |
0.11% |
0.07% |
0.09% |
Food Retailing |
12 |
13 |
9 |
0.08% |
0.08% |
0.06% |
Non-Food Retailing |
74 |
83 |
102 |
0.09% |
0.10% |
0.12% |
Servicing/Repair |
6 |
6 |
4 |
0.08% |
0.07% |
0.05% |
Transport |
63 |
52 |
62 |
0.12% |
0.10% |
0.12% |
Utilities |
1 |
3 |
2 |
0.05% |
0.14% |
0.11% |
Postal and Telecommunications |
10 |
6 |
4 |
0.12% |
0.07% |
0.05% |
Agriculture, Forestry and Fishing |
4 |
5 |
8 |
0.02% |
0.02% |
0.04% |
Banking and Financial Services |
65 |
51 |
57 |
0.12% |
0.10% |
0.11% |
Health and Household |
- |
- |
- |
0.00% |
0.00% |
0.00% |
Business Services |
348 |
293 |
373 |
0.06% |
0.05% |
0.07% |
Hiring and Leasing |
15 |
12 |
24 |
0.11% |
0.09% |
0.18% |
Property |
85 |
78 |
105 |
0.06% |
0.05% |
0.06% |
Other Services |
101 |
62 |
88 |
0.05% |
0.03% |
0.05% |
Plastics & Rubber |
8 |
17 |
10 |
0.12% |
0.26% |
0.17% |
Insurance |
12 |
3 |
6 |
0.10% |
0.03% |
0.05% |
IT |
67 |
44 |
54 |
0.06% |
0.04% |
0.05% |
Motor Traders |
37 |
26 |
42 |
0.10% |
0.07% |
0.12% |
Unspecified |
13 |
13 |
21 |
0.01% |
0.01% |
0.02% |
Grand total |
1,564 |
1,391 |
1,694 |
0.08% |
0.07% |
0.09% |
Source: pH, an Experian company
ENDS
Contact:
Natalie Hale
0115 992 2645/07971 709274
natalie.hale@uk.experian.com
About Experian
Experian is the leading global information services company, providing data and analytical tools to clients in more than 90 countries. The company helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. Experian also helps individuals to check their credit report and credit score, and protect against identity theft.
Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended 31 March 2010 was $3.9 billion. Experian employs approximately 15,000 people in 40 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; Costa Mesa, California; and São Paulo, Brazil.
For more information, visit http://www.experianplc.com.