News release
Contact:
Natalie Hale
0115 992 2645/07971 709274
natalie.hale@uk.experian.com
UK business insolvencies hits lowest rate in January since June 2007
Financial strength of businesses improved over two per cent year-on-year
Nottingham, UK, 19 February 2010 — The latest Insolvency Index from Experian®, the global information services company, reveals a positive picture in January, with the rate of business failures falling to its lowest point since June 2007.
Businesses across the UK saw an 2.1 per cent improvement in their combined financial strength score[1], from 79.46 in January 2009 to 81.16 January 2010. The rate of insolvencies[2] fell to 0.07 per cent in January 2010, with seven in every 10,000 businesses going under. This compares to an insolvency rate of 0.09 per cent in January 2009 and 0.11 per cent in December 2009.
Rolf Hickmann, Managing Director of pH, an Experian company, said: “It’s encouraging to discover that not since the current financial crunch started have so few firms become insolvent in a single month. Whilst it is too early to predict whether we are fully out of the woods, this does hint at an improvement in the health of UK businesses, something which is reinforced by the financial strength view provided by January’s data.”
Other key highlights include:
Region |
Insolvencies Jan 10 |
% change from Jan 09 |
% of business population failing Jan 10 |
% of business population failing Jan 09 |
Financial Strength Score Jan 10 |
Financial Strength Score Jan 09 |
Scotland |
77 |
20.3 |
0.07% |
0.06% |
81.12 |
80.37 |
North East |
49 |
-15.5 |
0.12% |
0.15% |
81.24 |
79.31 |
North West |
135 |
-37.5 |
0.07% |
0.12% |
80.45 |
78.88 |
Yorkshire |
156 |
-20.4 |
0.13% |
0.15% |
81.24 |
79.20 |
Wales |
32 |
-34.7 |
0.06% |
0.09% |
80.74 |
79.09 |
West Midlands |
121 |
-37.3 |
0.08% |
0.12% |
80.07 |
78.51 |
East Midlands |
84 |
-31.1 |
0.08% |
0.11% |
81.59 |
79.68 |
Eastern |
115 |
-32.7 |
0.07% |
0.10% |
82.20 |
80.70 |
South West |
103 |
-18.3 |
0.07% |
0.08% |
82.68 |
81.42 |
Greater London |
332 |
-18.6 |
0.07% |
0.08% |
80.02 |
77.85 |
South East |
214 |
-18.6 |
0.07% |
0.07% |
82.42 |
80.82 |
Grand Total |
1,418 |
-24.0 |
0.07% |
0.09% |
81.16 |
79.46 |
Source: pH, an Experian company
Number of employees |
Insolvencies Jan 10 |
% change from Jan 09 |
% of business population failing Jan 10 |
% of business population failing Jan 09 |
Financial Strength Score Jan 10 |
Financial Strength Score Jan 09 |
1-2 |
175 |
-11.6 |
0.04% |
0.05% |
82.44 |
80.29 |
3-5 |
225 |
-23.5 |
0.10% |
0.12% |
82.04 |
81.46 |
6-10 |
205 |
-26.3 |
0.16% |
0.21% |
81.39 |
80.68 |
11-25 |
195 |
-29.1 |
0.19% |
0.26% |
80.99 |
80.70 |
26-50 |
90 |
-23.7 |
0.19% |
0.24% |
80.53 |
80.40 |
51-100 |
51 |
-38.6 |
0.19% |
0.30% |
80.06 |
79.92 |
101-500 |
41 |
-34.9 |
0.15% |
0.23% |
81.14 |
81.10 |
501+ |
12 |
-33.3 |
0.13% |
0.19% |
84.22 |
84.57 |
Unspecified |
424 |
-21.3 |
0.05% |
0.05% |
80.42 |
78.21 |
Grand Total |
1,418 |
-24.0 |
0.07% |
0.09% |
81.16 |
79.46 |
Source: pH, an Experian company
Sector |
Insolvencies Jan 10 |
% change from Jan 09 |
% of business population failing Jan 10 |
% of business population failing Jan 09 |
Financial Strength Score Jan 10 |
Financial Strength Score Jan 09 |
Extractive Industries |
- |
- |
0.00% |
0.00% |
82.78 |
81.94 |
Oil |
1 |
-66.7 |
0.03% |
0.09% |
86.35 |
84.52 |
Building and Construction |
217 |
-27.2 |
0.13% |
0.19% |
78.02 |
77.35 |
Building Materials |
9 |
50.0 |
0.24% |
0.16% |
79.56 |
79.57 |
Chemicals Industry |
3 |
-25.0 |
0.11% |
0.13% |
81.36 |
80.89 |
Diversified Industrials |
45 |
-27.4 |
0.21% |
0.27% |
78.16 |
77.71 |
Electricals |
14 |
16.7 |
0.16% |
0.13% |
79.37 |
78.97 |
Engineering |
62 |
6.9 |
0.16% |
0.15% |
79.31 |
78.97 |
Printing, Paper and Packaging |
5 |
-16.7 |
0.20% |
0.23% |
78.24 |
78.25 |
Textiles and Clothing |
24 |
-17.2 |
0.18% |
0.20% |
76.81 |
75.96 |
Breweries |
2 |
0.0 |
0.42% |
0.41% |
79.96 |
79.66 |
Spirits, Wine and Tobacco |
- |
- |
0.00% |
0.00% |
82.27 |
81.62 |
Food Manufacturing |
6 |
-60.0 |
0.12% |
0.30% |
77.80 |
77.50 |
Pharmaceuticals |
1 |
0.0 |
0.11% |
0.11% |
81.43 |
81.96 |
Wholesaling |
65 |
-22.6 |
0.10% |
0.12% |
79.85 |
79.18 |
Leisure and Hotels |
92 |
-29.8 |
0.11% |
0.16% |
79.02 |
76.41 |
Media |
52 |
-16.1 |
0.08% |
0.09% |
80.89 |
79.27 |
Food Retailing |
16 |
6.7 |
0.11% |
0.11% |
76.85 |
77.48 |
Non-Food Retailing |
92 |
-33.8 |
0.11% |
0.16% |
79.07 |
78.05 |
Servicing/Repair |
4 |
-60.0 |
0.05% |
0.11% |
82.30 |
80.26 |
Transport |
57 |
-23.0 |
0.11% |
0.13% |
78.42 |
76.78 |
Utilities |
- |
- |
0.00% |
0.00% |
80.52 |
79.72 |
Postal and Telecommunications |
9 |
50.0 |
0.10% |
0.07% |
76.30 |
74.36 |
Agriculture, Forestry and Fishing |
8 |
-27.3 |
0.04% |
0.05% |
85.38 |
83.85 |
Banking and Financial Services |
49 |
-15.5 |
0.10% |
0.12% |
84.60 |
84.30 |
Health and Household |
- |
-100.0 |
0.00% |
0.11% |
79.48 |
78.66 |
Business Services |
335 |
-12.8 |
0.06% |
0.07% |
81.61 |
79.47 |
Hiring and Leasing |
12 |
-36.8 |
0.09% |
0.14% |
81.29 |
78.93 |
Property |
67 |
-49.6 |
0.04% |
0.08% |
83.48 |
84.76 |
Other Services |
61 |
-22.8 |
0.03% |
0.05% |
85.67 |
83.77 |
Plastics & Rubber |
15 |
-11.8 |
0.26% |
0.29% |
78.02 |
78.03 |
Insurance |
3 |
-62.5 |
0.03% |
0.07% |
84.73 |
84.88 |
IT |
53 |
-1.9 |
0.05% |
0.05% |
83.60 |
80.00 |
Motor Traders |
27 |
-44.9 |
0.08% |
0.14% |
79.91 |
78.68 |
Unspecified |
12 |
-66.7 |
0.01% |
0.02% |
74.03 |
68.15 |
Grand total |
1,418 |
-24.0 |
0.07% |
0.09% |
81.16 |
79.46 |
Source: pH, an Experian company
ENDS
[1] The financial strength score predicts the likelihood of a business failing in the next 12 months, with 100 being the least likely to default and 1 being the most likely.
[2] The insolvency rate is calculated by comparing the number of businesses that failed with the total business population in Great Britain.