Insolvencies amongst the UKs largest firms halve in October

news release 

Insolvencies amongst the UK’s largest firms halve in October

Nottingham, 27 November 2013 The latest Business Insolvency Index from Experian®, the global information services company, reveals that the  UK’s largest companies saw the number of insolvencies in October halve compared to last year.

This meant the insolvency rate for companies with 500 plus employees went from 0.20 per cent to 0.08 per cent, bringing it back in line with the UK average after several increases over the summer months.

The year-on-year business insolvency rate for the UK remained stable in October 2013 at 0.08 per cent, bringing the fourteenth month since insolvency rates last rose.

October also saw a positive outcome for the Building & Construction industry, with a year-on-year fall in insolvency rates from 0.15 per cent in 2012 to 0.14 per cent in 2013. This means that insolvencies within Building & Construction have fallen year-on-year for 12 consecutive months.

Yorkshire performed well with the largest fall of all the regions from 0.14 per cent in October 2012 to 0.11 per cent.

Although the North East has the highest rate of all the regions, it has seen some improvement since last year with a decrease from 0.13 per cent in October 2012 to 0.12 per cent in October 2013.

Max Firth, Managing Director, Experian Business Information Services, UK&I said: “The positive trends from October are coming from some of the UK’s largest sectors and biggest firms which is a good indicator of things to come. We are seeing a greater level of confidence among businesses than this time last year which in turn may lead to expansion and growth. Although this can bring increased risk exposure, getting an in-depth picture of the financial health of potential clients will help business make the best decisions and identify the best opportunities.”

Area

Insolvencies

October 2013

Insolvencies

October 2012

% of business population failing October 2013

% of business population failing  October 2012

Scotland

72

            45

0.06%

0.04%

North East

52

            55

0.12%

0.13%

North West

192

           167

0.09%

0.08%

Yorkshire

139

           177

0.11%

0.14%

Wales

49

            72

0.08%

0.12%

West Midlands

151

           119

0.09%

0.07%

East Midlands

89

            99

0.07%

0.09%

Eastern

157

           139

0.08%

0.07%

South West

124

           114

0.07%

0.07%

London

508

           443

0.09%

0.08%

South East

269

           255

0.08%

0.07%

Grand Total

1,802

        1,685

0.08%

0.08%

Source: pH, an Experian company

Employment

Insolvencies

October 2013

Insolvencies

October 2012

% of business population failing October 2013

% of business population failing October 2012

0-2

254

           239

0.06%

0.06%

3-5

275

           232

0.11%

0.10%

6-10

221

           239

0.15%

0.17%

11-25

210

           221

0.19%

0.21%

26-50

89

            83

0.18%

0.17%

51-100

45

            48

0.16%

0.17%

101-500

43

            39

0.16%

0.15%

501+

7

            18

0.08%

0.20%

Grand Total

1,802

        1,685

0.08%

0.08%

Source: pH, an Experian company

Sector

Insolvencies

October 2013

Insolvencies

October 2012

% of business population failing October 2013

% of business population failing October 2012

Extractive Industries

0

              1

0.00%

0.07%

Oil

8

              4

0.24%

0.14%

Building and Construction

255

           253

0.14%

0.15%

Building Materials

3

            10

0.08%

0.27%

Chemicals Industry

4

              3

0.15%

0.11%

Diversified Industrials

28

            30

0.12%

0.14%

Electricals

19

              8

0.20%

0.09%

Engineering

54

            64

0.13%

0.16%

Printing, Paper and Packaging

4

              3

0.12%

0.09%

Textiles and Clothing

21

            18

0.13%

0.12%

Breweries

0

             -  

0.00%

0.00%

Spirits, Wine and Tobacco

0

             -  

0.00%

0.00%

Food Manufacturing

6

              7

0.08%

0.10%

Pharmaceuticals

0

              4

0.00%

0.30%

Wholesaling

98

            82

0.16%

0.13%

Leisure and Hotels

125

           113

0.12%

0.12%

Media

48

            45

0.07%

0.07%

Food Retailing

14

            11

0.08%

0.06%

Non-Food Retailing

90

            93

0.09%

0.10%

Servicing/Repair

6

              4

0.07%

0.05%

Transport

62

            60

0.11%

0.11%

Utilities

2

              4

0.07%

0.14%

Postal and Telecommunications

8

              9

0.08%

0.10%

Agriculture, Forestry and Fishing

6

              9

0.03%

0.04%

Banking and Financial Services

64

            72

0.12%

0.14%

Health and Household

3

             -  

0.35%

0.00%

Business Services

423

           381

0.08%

0.07%

Hiring and Leasing

10

            14

0.07%

0.10%

Property

93

            99

0.06%

0.07%

Other Services

133

           120

0.05%

0.05%

Plastics & Rubber

7

            19

0.10%

0.28%

Insurance

11

              8

0.09%

0.07%

IT

119

            70

0.09%

0.06%

Motor Traders

51

            45

0.13%

0.12%

Unspecified

27

            22

0.02%

0.02%

Grand Total

1,802

        1,685

0.08%

0.08%

Source: pH, an Experian company

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