news release
Business insolvencies fall in April
Insight from Experian shows that financial health of UK firms has improved
North East sees biggest improvement
Nottingham, 23 May 2012 – New figures from Experian®, the global information services company, today revealed that 1,564 businesses failed during April 2012, representing 0.08 per cent of the business population. In comparison, 1,808 firms failed in April last year, representing 0.10 per cent of the business population.
All areas of the UK saw their average financial health score [1] improve – from an average of 83.24 in April 2011 to 83.76 during April 2012. The biggest improvement came from firms in Scotland – from 82.55 last April to 83.66.
Max Firth, UK Managing Director for Experian’s Business Information Services division, said: “Today’s figures show a more stable business environment, with some areas and sectors that have historically seen the highest rates of business failures moving in the right direction.
“Since January 2009, when the average financial strength score of UK firms had fallen to its lowest level recorded, there has been a definite and positive upward trend. Combined, these two valuable indicators show how UK businesses are faring and highlight areas where there are opportunities, as well as risks.”
North East region sees continued improvement
For the second month in a row, firms in the North East have seen the biggest year-on-year improvement – from aninsolvency rate [2] of 0.15 per cent in April last year to 0.09 per cent. The North East was also the region to see its insolvency rate improve the most from March 2011 to March 2012.
The March 2012 to April 2012 view also highlights the North East region as seeing the second most significant improvement – from 0.14 per cent in March 2012 to 0.09 per cent in April. The North West fared even better, seeing its insolvency rate drop from 0.14 per cent in March to 0.08 per cent in April.
The East Midlands and Scotland were the only two areas of the UK to see their insolvency rate increase compared to April 2011 – both rose from 0.07 per cent in April last year to 0.09 per cent.
Mid sized firms fare better during April
The latest insolvency index also highlighted that medium sized firms, which have traditionally struggled the most, were the most improved during April. Businesses with 51 to 100 employees saw the biggest improvement from 0.22 per cent April 2011 to 0.10 per cent in April 2012. They were also one of the categories to see the biggest month-on-month fall – from 0.20 per cent in March.
Smaller businesses with 26 to 50 employees saw a similar month-on-month fall – from 0.24 per cent in March to 0.16 per cent in April.
Property firms lead the way in April
Of the UK’s five biggest sectors – business services, building/construction, property, IT and leisure/hotel – the property sector saw the biggest improvement during April – falling from 0.12 per cent in April last year to 0.06 per cent last month. This was followed by the building and construction sector from 0.18 per cent to 0.15 per cent.
The property sector also saw the average financial health of its business population improve the most compared to the other big industries – from 79.43 in April last year to 80.38 during April this year.
Region |
Insolvencies |
% change from |
% of business population failing |
% of business population failing |
Financial Strength Score |
Financial Strength Score |
Scotland |
106 |
30.9 |
0.09% |
0.07% |
83.66 |
82.55 |
North East |
36 |
-37.9 |
0.09% |
0.15% |
84.53 |
83.93 |
North West |
162 |
-25.7 |
0.08% |
0.12% |
83.55 |
83.16 |
Yorkshire |
132 |
-7.7 |
0.11% |
0.12% |
84.14 |
83.61 |
Wales |
42 |
-10.6 |
0.07% |
0.09% |
83.74 |
82.93 |
West Midlands |
144 |
-8.3 |
0.09% |
0.10% |
83.46 |
82.75 |
East Midlands |
97 |
31.1 |
0.09% |
0.07% |
84.92 |
84.29 |
Eastern |
143 |
-34.1 |
0.08% |
0.12% |
84.53 |
84.19 |
South West |
92 |
-13.2 |
0.06% |
0.07% |
85.20 |
84.69 |
Greater London |
363 |
-13.2 |
0.07% |
0.09% |
82.23 |
81.79 |
South East |
247 |
-14.5 |
0.07% |
0.09% |
84.62 |
84.08 |
Grand Total |
1,564 |
-13.5 |
0.08% |
0.10% |
83.76 |
83.24 |
Source: pH, an Experian company
Number of employees |
Insolvencies |
% change from |
% of business population failing |
% of business population failing |
Financial Strength Score |
Financial Strength Score |
1-2 |
235 |
-11.3 |
0.05% |
0.06% |
84.79 |
84.08 |
3-5 |
227 |
-12.0 |
0.10% |
0.12% |
84.82 |
84.19 |
6-10 |
226 |
-13.1 |
0.17% |
0.20% |
84.78 |
84.11 |
11-25 |
180 |
-20.0 |
0.17% |
0.22% |
84.74 |
84.00 |
26-50 |
79 |
-14.1 |
0.16% |
0.19% |
84.55 |
83.77 |
51-100 |
32 |
-46.7 |
0.12% |
0.22% |
85.24 |
84.36 |
101-500 |
33 |
-29.8 |
0.12% |
0.18% |
85.47 |
84.56 |
501+ |
7 |
-41.7 |
0.08% |
0.13% |
86.26 |
85.38 |
Grand Total |
1,564 |
-13.5 |
0.08% |
0.10% |
83.76 |
83.24 |
Source: pH, an Experian company
Sector |
Insolvencies |
% change from |
% of business population failing |
% of business population failing |
Financial Strength Score |
Financial Strength Score |
Extractive Industries |
2 |
0.0 |
0.14% |
0.14% |
83.00 |
82.84 |
Oil |
1 |
- |
0.04% |
0.00% |
85.86 |
84.94 |
Building & Construction |
249 |
-13.8 |
0.15% |
0.18% |
82.70 |
82.22 |
Building Materials |
7 |
-12.5 |
0.19% |
0.22% |
84.04 |
83.65 |
Chemicals Industry |
2 |
-60.0 |
0.08% |
0.19% |
85.46 |
84.19 |
Diversified Industrials |
32 |
0.0 |
0.15% |
0.15% |
84.32 |
83.70 |
Electricals |
9 |
-55.0 |
0.10% |
0.22% |
84.53 |
83.94 |
Engineering |
39 |
-47.3 |
0.10% |
0.19% |
85.15 |
84.28 |
Printing, Paper & Packaging |
4 |
- |
0.12% |
0.00% |
85.38 |
84.25 |
Textiles & Clothing |
18 |
0.0 |
0.12% |
0.13% |
82.74 |
82.11 |
Breweries |
1 |
0.0 |
0.20% |
0.22% |
85.84 |
85.41 |
Spirits, Wine & Tobacco |
1 |
- |
0.21% |
0.00% |
86.06 |
84.36 |
Food Manufacturing |
3 |
-75.0 |
0.04% |
0.19% |
83.79 |
83.36 |
Pharmaceuticals |
- |
-100.0 |
0.00% |
0.16% |
85.18 |
84.77 |
Wholesaling |
63 |
1.6 |
0.10% |
0.10% |
83.65 |
83.22 |
Leisure & Hotels |
142 |
15.4 |
0.16% |
0.14% |
82.74 |
82.32 |
Media |
49 |
-10.9 |
0.08% |
0.09% |
84.02 |
83.49 |
Food Retailing |
22 |
37.5 |
0.13% |
0.10% |
83.73 |
83.40 |
Non-Food Retailing |
108 |
11.3 |
0.13% |
0.12% |
83.90 |
83.45 |
Servicing / Repair |
4 |
100.0 |
0.05% |
0.03% |
85.95 |
85.68 |
Transport |
35 |
-39.7 |
0.07% |
0.11% |
83.77 |
83.27 |
Utilities |
3 |
50.0 |
0.11% |
0.09% |
84.97 |
83.85 |
Postal & Telecommunications |
13 |
8.3 |
0.15% |
0.15% |
82.59 |
82.01 |
Agriculture, Forestry & Fishing |
2 |
-75.0 |
0.01% |
0.04% |
87.87 |
87.05 |
Banking & Financial Services |
41 |
-47.4 |
0.08% |
0.15% |
85.22 |
84.51 |
Health & Household |
- |
- |
0.00% |
0.00% |
83.36 |
83.07 |
Business Services |
380 |
-9.3 |
0.07% |
0.08% |
84.00 |
83.44 |
Hiring & Leasing |
16 |
-20.0 |
0.12% |
0.15% |
83.59 |
83.11 |
Property |
92 |
-50.0 |
0.06% |
0.12% |
80.38 |
79.43 |
Other Services |
91 |
1.1 |
0.04% |
0.04% |
86.18 |
85.91 |
Plastics & Rubber |
13 |
-18.8 |
0.19% |
0.24% |
84.05 |
83.36 |
Insurance |
7 |
-22.2 |
0.06% |
0.08% |
85.60 |
85.46 |
IT |
68 |
33.3 |
0.06% |
0.05% |
84.65 |
83.96 |
Motor Traders |
33 |
32.0 |
0.09% |
0.07% |
84.53 |
84.23 |
Unspecified |
14 |
-22.2 |
0.01% |
0.01% |
80.08 |
79.36 |
Grand total |
1,564 |
-13.5 |
0.08% |
0.10% |
83.76 |
83.24 |
Source: pH, an Experian company
ENDS
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