Nottingham, 1 Sept 2010 — The rate of business insolvencies1 for the automotive industry3 fell from 0.14 per cent in July 2009 to 0.10 per cent in July 2010, according to the latest Insolvency and Late Payment indices from Experian®, the global information services company.
The financial strength2 of the automotive industry also saw a slight improvement year-on-year, going up to 79.90 from 79.75 in July 2009.
Payment performance amongst automotive businesses saw a slight improvement from 16.98 in July last year, dropping to 16.84 in July this year, but the improvement was not as significant as it has been in previous months resulting in automotive business shifting from being the third fastest payers to the tenth in the last twelve months.
Joe Myers, Commercial Director for Experian Credit Services, said: “The decline in insolvencies and improvement in payment performance in July has meant that the financial strength score of the industry has remained buoyant this month. It seems the other sectors are catching up with Automotive dealers in understanding that paying bills late can be detrimental to their business credit scores, business relationships, lines of credit and subsequently the business as a whole.”
Insolvency rate |
July-10 |
July-09 |
June-10 |
Automotive |
0.10% |
0.14% |
0.09% |
All sectors |
0.08% |
0.12% |
0.09% |
Source: pH, an Experian company
Insolvencies |
July-10 |
July-09 |
% Change from 09 |
June-10 |
Automotive |
35 |
50 |
-30.0 |
31 |
All sectors |
1,542 |
2,312 |
-33.3 |
1,771 |
Source: pH, an Experian company
Financial Strength Score |
July-10 |
July-09 |
% Change from 09 |
June-10 |
Automotive |
79.90 |
79.75 |
0.2 |
79.74 |
All sectors |
80.93 |
80.61 |
0.4 |
80.83 |
Source: pH, an Experian company
Days Beyond Term |
July-10 |
July-09 |
% Change from 09 |
June-10 |
Automotive |
16.84 |
16.98 |
-0.9 |
17.02 |
All sectors |
21.06 |
24.32 |
-13.4 |
20.98 |
Source: pH, an Experian company
Contact:
Natalie Hale
Telphone: 0115 992 2645/07971 709 274
Email: natalie.hale@uk.experian.com
About Experian
Experian is the leading global information services company, providing data and analytical tools to clients in more than 90 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.
Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended 31 March 2010 was $3.9 billion. Experian employs approximately 15,000 people in 40 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; Costa Mesa, California; and São Paulo, Brazil.
For more information, visit http://www.experianplc.com .
1 The insolvency rate is calculated by comparing the number of businesses that failed with the total automotive business population in Great Britain.
2 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.
1 Encompasses the following businesses; sale, maintenance and repair of motor vehicles; sale of motor vehicle parts and accessories; sale, maintenance and repair of motorcycles and retail sale of automotive fuel.