news release

 

SMEs lead the fall in business insolvencies during June 2012

 

Nottingham, 17 July 2012 – The latest Business Insolvency Index from Experian®, the global information services company, revealed that during June 2012, 0.08 per cent of the business population failed - a small improvement from the 0.09 per cent record in both the previous month (May) and also in June 2011.  1,650 businesses became insolvent in June 2012, compared to 1,841 in May 2012 and 1,783 in June 2011.

SMEs with 1 to 100 employees were the only group to see improvements in their insolvency rates, with the biggest rise coming specifically from SMEs with 51 to 100 employees – from 0.19 per cent in June 2011 to 0.12 per cent in June this year.

The UK’s biggest businesses (101 or more employees) experienced an increase in the rate of insolvencies compared to June 2011.  Firms with between 101 to 500 employees experienced a 0.16 per cent failure rate, compared to 0.08 per cent in June last year.  Firms with more than 500 employees saw an increase in insolvency rate from 0.12 per cent in June last year to 0.15 per cent in June this year. 

Max Firth, Managing Director, Experian Business Information Services, UK&I said: “Although the overall figures for June show a fairly stable environment at the moment led by smaller firms, the higher insolvency rate at the top end of the business world will have an impact on the supply chain.  Many smaller suppliers, unless they have a good credit management process in place, will find themselves short of a major customer and left with unpaid bills.  They will need to move quickly to fill the gap in their customer base.

“When taking on new business, it is vital they start to monitor the health of both customers and suppliers.  They can be forewarned of any issues and be in a better position to deal with the impact of another business’s failure.”

June a good month for Scottish firms

Overall, Scottish firms fared the best during June.  In addition to improved insolvency rates, they saw the highest improvements in financial health from June 2011 (82.68) and also from May 2012 (83.44) to 83.45 June 2012.

The only regions to experience an increase in the rate of business insolvencies during June, month on month and year on year,  were Yorkshire and the West Midlands.

Vulnerable sectors see lower insolvencies rates

Of the UK’s five biggest industries – the leisure/hotel and the building/construction sectors saw the biggest improvements – from May 2012 and also compared to June 2011.  For firms in the leisure/hotel sector – this is the third consecutive month of falling insolvencies.


Region

Insolvencies
June-12

% change from
June-11

% of business population failing
June-12

% of business population failing
June-11

Financial Strength Score
June-12

Financial Strength Score
June-11

Scotland

          107

-6.1

0.09%

0.10%

     83.45

     82.68

North East

            54

1.9

0.13%

0.13%

     84.14

     83.91

North West

          195

-11.0

0.10%

0.12%

     83.20

     83.18

Yorkshire

          159

10.4

0.13%

0.12%

     83.84

     83.71

Wales

            51

-12.1

0.09%

0.11%

     83.44

     83.08

West Midlands

          169

18.2

0.11%

0.09%

     83.24

     83.05

East Midlands

          102

4.1

0.09%

0.09%

     84.56

     84.35

Eastern

          146

2.8

0.08%

0.08%

     84.17

     84.21

South West

          100

-9.9

0.06%

0.07%

     84.87

     84.73

Greater London

          351

-11.6

0.07%

0.08%

     81.97

     81.81

South East

          241

-20.7

0.07%

0.09%

     84.26

     84.14

Grand Total

       1,675

-6.1

0.08%

0.09%

     83.46

     83.30

Source: pH, an Experian company

 

Number of employees

Insolvencies
June-12

% change from
June-11

% of business population failing
June-12

% of business population failing
June-11

Financial Strength Score
June-12

Financial Strength Score
June-11

1-2

          255

-13.9

0.06%

0.07%

     84.49

     84.10

3-5

          244

-10.0

0.10%

0.12%

     84.44

     84.23

6-10

          236

-10.3

0.17%

0.20%

     84.34

     84.17

11-25

          205

-0.5

0.19%

0.20%

     84.20

     84.04

26-50

            81

-24.3

0.17%

0.22%

     84.04

     83.86

51-100

            34

-35.8

0.12%

0.19%

     84.64

     84.49

101-500

            43

104.8

0.16%

0.08%

     85.02

     84.70

501+

            13

18.2

0.15%

0.12%

     85.95

     85.50

Grand Total

       1,675

-6.1

0.08%

0.09%

     83.46

     83.30

Source: pH, an Experian company

 

Sector

Insolvencies
June-12

% change from
June-11

% of business population failing
June-12

% of business population failing
June-11

Financial Strength Score
June-12

Financial Strength Score
June-11

Extractive Industries

              2

100.0

0.14%

0.07%

     82.49

     83.01

Oil

              2

-

0.07%

0.00%

     85.29

     84.91

Building & Construction

          278

-6.1

0.17%

0.18%

     82.34

     82.19

Building Materials

              7

-30.0

0.19%

0.27%

     83.90

     83.73

Chemicals Industry

              6

200.0

0.22%

0.08%

     84.97

     84.57

Diversified Industrials

            27

-22.9

0.13%

0.17%

     83.91

     83.84

Electricals

            11

-15.4

0.12%

0.15%

     84.18

     84.00

Engineering

            50

-21.9

0.12%

0.16%

     84.72

     84.42

Printing, Paper & Packaging

              5

66.7

0.15%

0.09%

     84.65

     84.41

Textiles & Clothing

            21

10.5

0.14%

0.13%

     82.52

     82.10

Breweries

            -  

-

0.00%

0.00%

     85.41

     85.09

Spirits, Wine & Tobacco

            -  

-

0.00%

0.00%

     85.12

     85.16

Food Manufacturing

              9

12.5

0.13%

0.12%

     83.57

     83.60

Pharmaceuticals

              1

-

0.08%

0.00%

     84.89

     84.86

Wholesaling

            75

0.0

0.12%

0.12%

     83.43

     83.34

Leisure & Hotels

          136

-4.2

0.15%

0.16%

     82.38

     82.38

Media

            45

-21.1

0.07%

0.09%

     83.67

     83.51

Food Retailing

            22

4.8

0.13%

0.13%

     83.40

     83.38

Non-Food Retailing

            92

-11.5

0.11%

0.12%

     83.56

     83.53

Servicing / Repair

              7

16.7

0.09%

0.08%

     85.68

     85.69

Transport

            54

-5.3

0.10%

0.11%

     83.40

     83.37

Utilities

              1

0.0

0.04%

0.04%

     84.21

     84.06

Postal & Telecommunications

              9

-10.0

0.10%

0.12%

     82.27

     82.08

Agriculture, Forestry & Fishing

              9

-18.2

0.04%

0.05%

     87.42

     87.05

Banking & Financial Services

            52

-5.5

0.10%

0.11%

     84.91

     84.58

Health & Household

              1

-

0.12%

0.00%

     83.20

     83.20

Business Services

          395

-6.8

0.07%

0.08%

     83.74

     83.56

Hiring & Leasing

            15

-34.8

0.11%

0.17%

     83.24

     83.09

Property

          105

25.0

0.07%

0.06%

     79.99

     79.53

Other Services

            98

-1.0

0.04%

0.05%

     85.73

     85.91

Plastics & Rubber

            15

36.4

0.22%

0.17%

     83.78

     83.56

Insurance

              6

50.0

0.05%

0.04%

     85.32

     85.41

IT

            60

-11.8

0.05%

0.06%

     84.44

     84.01

Motor Traders

            40

-11.1

0.11%

0.13%

     84.15

     84.25

Unspecified

            19

-45.7

0.02%

0.03%

     80.06

     79.57

Grand total

       1,675

-6.1

0.08%

0.09%

     83.46

     83.30

Source: pH, an Experian company

 

ENDS

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