UK business insolvencies increase in October 2011

Nottingham, 30 November 2011 - The latest Insolvency Index from Experian® has revealed that 0.10 per cent of the business population became insolvent during October, compared to 0.09 per cent in September 2011 and 0.08 per cent in October 2010. 

The South West of England was the best performing region (0.06 per cent) while the West Midlands overtook the North East as the worst performing region with an insolvency rate of 0.13 per cent.

The average financial strength score1 for UK businesses was 78.44 in October. However, large companies saw their financial strength score improve from 84.84 last year to 85.81 in October 2011.

With regard to sectors, businesses in the Oil industry continued to have the highest financial strength score at 83.89 while Food Retailers retained the lowest score (73.75). 

Max Firth, UK & Ireland Managing Director for Business Information Services at Experian, comments: “While 0.10 per cent represents a very small percentage of the UK’s business population failing in October, we are seeing an increase in insolvencies across most sizes of business.  As a result of this, more and more businesses are now acutely aware of the importance of having a good understanding about the companies they deal with.  Using commercial information to gain insight into a customer, partner or supplier’s financial health is a highly effective way to helping businesses make even smarter decisions in today’s environment.”

1The 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.


Region

Insolvencies
Oct-11

% change from
Oct-10

% of business population failing
Oct-11

% of business population failing
Oct-10

Financial Strength Score
Oct-11

Financial Strength Score
Oct-10

Scotland

                 93

45.31

0.08%

0.05%

 79.56

 80.81

North East

                 42

-2.33

0.10%

0.11%

 79.49

 81.22

North West

               221

0.91

0.12%

0.11%

 77.94

 80.45

Yorkshire

               108

-14.29

0.09%

0.10%

 78.58

 81.04

Wales

                 44

-12.00

0.08%

0.09%

 78.74

 80.60

West Midlands

               247

34.97

0.16%

0.11%

 77.90

 80.12

East Midlands

               129

40.22

0.12%

0.08%

 79.33

 81.37

Eastern

               137

-2.84

0.08%

0.08%

 79.58

 81.90

South West

                 95

-8.65

0.06%

0.07%

 80.80

 82.69

Greater London

               462

17.86

0.09%

0.08%

 76.06

 79.83

South East

               269

21.72

0.08%

0.07%

 79.79

 82.17

Grand Total

            1,847

12.97

0.10%

0.08%

 78.44

 81.00

Source: pH, an Experian company


Number of employees

Insolvencies
Oct-11

% change from
Oct-10

% of business population failing
Oct-11

% of business population failing
Oct-10

Financial Strength Score
Oct-11

Financial Strength Score
Oct-10

1-2

               247

10.76

0.06%

0.05%

     82.17

     82.23

3-5

               256

0.39

0.11%

0.11%

     81.21

     81.84

6-10

               214

-3.60

0.16%

0.17%

     81.17

     81.43

11-25

               238

-0.83

0.23%

0.23%

     81.16

     81.17

26-50

               108

2.86

0.22%

0.22%

     81.17

     81.19

51-100

                 48

-25.00

0.17%

0.24%

     81.22

     81.05

101-500

                 57

23.91

0.21%

0.17%

     82.34

     82.28

501+

                 12

33.33

0.13%

0.10%

     85.81

     84.87

Unspecified

               667

41.61

0.07%

0.05%

     75.05

     80.12

Grand Total

            1,847

12.97

0.10%

0.08%

     78.44

     81.00

Source: pH, an Experian company

Sector

Insolvencies
Oct-11

% change from
Oct-10

% of business population failing
Oct-11

% of business population failing
Oct-10

Financial Strength Score
Oct-11

Financial Strength Score
Oct-10

Extractive Industries

                 -  

-100.00

0.00%

0.07%

     80.26

     82.44

Oil

                   1

0.00

0.04%

0.03%

     83.89

     85.86

Building & Construction

               240

2.13

0.15%

0.14%

     76.15

     77.49

Building Materials

                   3

-50.00

0.08%

0.16%

     78.50

     79.81

Chemicals Industry

                   3

-50.00

0.11%

0.22%

     80.39

     81.80

Diversified Industrials

                 25

-28.57

0.12%

0.16%

     76.83

     77.91

Electricals

                   5

-50.00

0.06%

0.11%

     78.40

     79.24

Engineering

                 59

-21.33

0.15%

0.19%

     78.64

     79.39

Printing, Paper & Packaging

                   6

100.00

0.18%

0.10%

     78.19

     78.67

Textiles & Clothing

                 34

88.89

0.23%

0.12%

     74.90

     76.42

Breweries

                 -  

-100.00

0.00%

0.41%

     75.94

     79.49

Spirits, Wine & Tobacco

                 -  

0.00

0.00%

0.00%

     78.59

     82.68

Food Manufacturing

                 14

40.00

0.21%

0.16%

     76.60

     77.98

Pharmaceuticals

                   1

-50.00

0.08%

0.16%

     81.78

     81.84

Wholesaling

                 77

-18.09

0.13%

0.15%

     78.37

     79.76

Leisure & Hotels

               145

14.17

0.16%

0.15%

     77.32

     79.28

Media

                 35

-46.15

0.06%

0.10%

     78.61

     80.56

Food Retailing

                 13

-7.14

0.08%

0.09%

     73.53

     75.49

Non-Food Retailing

               105

16.67

0.12%

0.10%

     76.94

     78.78

Servicing / Repair

                 10

25.00

0.13%

0.10%

     81.09

     82.25

Transport

                 58

-17.14

0.11%

0.13%

     77.15

     78.42

Utilities

                   2

100.00

0.08%

0.04%

     75.95

     79.67

Postal & Telecommunications

                   7

-12.50

0.08%

0.09%

     73.99

     76.20

Agriculture, Forestry & Fishing

                   7

-22.22

0.03%

0.04%

     83.64

     85.05

Banking & Financial Services

                 86

28.36

0.17%

0.13%

     82.18

     83.95

Health & Household

                 -  

0.00

0.00%

0.00%

     77.65

     79.05

Business Services

               470

25.67

0.09%

0.07%

     78.17

     81.44

Hiring & Leasing

                 11

-56.00

0.08%

0.18%

     80.57

     81.53

Property

               125

83.82

0.08%

0.04%

     80.40

     82.34

Other Services

               101

23.17

0.05%

0.04%

     83.51

     85.88

Plastics & Rubber

                 20

25.00

0.30%

0.24%

     77.40

     78.06

Insurance

                 25

316.67

0.22%

0.05%

     82.82

     84.22

IT

                 74

27.59

0.07%

0.05%

     80.58

     83.45

Motor Traders

                 39

21.88

0.11%

0.09%

     78.89

     80.12

Unspecified

                 46

170.59

0.04%

0.01%

     66.43

     75.29

Grand total

            1,847

12.97

0.10%

0.08%

     78.44

     81.00

Source: pH, an Experian company

ENDS

Contact:

Chantal Heckford / Jennifer Comerford
Lansons Communications
020 7490 8828
chantalh@lansons.com / jenniferc@lansons.com

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About Experian
Experian is the leading global information services company, providing data and analytical tools to clients in more than 80 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.

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