North East sees business failures more than double from August to September

Sept Insols

News release

North East sees business failures more than double from August to September

Nottingham, 26 October 2010 - The latest Insolvency Index from Experian®, the global information services company, has revealed that business failures in the North East of England more than doubled in the space of two months.

Although the UK-wide picture shows the insolvency rate fluctuating month by month, it still reveals an overall improvement in insolvency rates since early 2009. September saw a slight annual decrease (from 0.09 per cent to 0.08 per cent), but was up from the 0.07 per cent reported in August 2010.

Yorkshire was the only region to see an improvement between August and September.  The insolvency rate for the East Midlands, West Midlands and Eastern England remained static, but the remaining regions all saw an increase.  However it was the North East that saw the greatest increase - from 0.06 per cent in August up to 0.15 per cent in September. 

Max Firth, Managing Principle of pH, an Experian company, said: “The North East of England’s business population is one of the smallest so every insolvency can dramatically affect the rate, which explains why we have seen a big variation between August and September.  This underlines why businesses must be vigilant and closely monitor the financial health of every organisation they do business with.”

The overall financial strength score for businesses echoed the insolvency rate with a positive annual change and a negative monthly variance - up to 81.05 from 80.79 in September last year but down from 81.06 last month.

Other key highlights include: 
• Yorkshire was the only region to see a drop in the insolvency rate since last month, going from 0.13 per cent to 0.10 per cent from August to September
• Eastern England was the only region, from the six in August 2010, to remain at 0.06 per cent into September leaving it the region with the lowest rate of insolvencies
• The largest companies, those with 500 or more employees, saw the greatest rise year-on-year in the insolvency rate (from 0.07 per cent in September 2009 to 0.16 per cent).
• Businesses with 6-10 employees saw the biggest annual drop in the rate of insolvencies from 0.21 in September last year to 0.16 in 2010. It was also the only sized business to see a quarterly drop from 0.17 per cent in August.

 

 

 

 

 

Region

Insolvencies Sept 10

Insolvencies  August 10

Insolvencies  Sept 09

% of business population failing Sept 10

% of business population failing August 10

% of business population failing Sept 09

Scotland

 83

 72

 49

0.07%

0.06%

0.04%

North East

 60

 26

 46

0.15%

0.06%

0.12%

North West

 204

 184

 215

0.11%

0.10%

0.11%

Yorkshire

 120

 152

 139

0.10%

0.13%

0.12%

Wales

 50

 44

 43

0.09%

0.08%

0.08%

West Midlands

 131

 131

 185

0.08%

0.08%

0.12%

East Midlands

 96

 99

 122

0.09%

0.09%

0.11%

Eastern

 111

 106

 153

0.06%

0.06%

0.09%

South West

 104

 93

 123

0.07%

0.06%

0.08%

Greater London

 371

 287

 368

0.08%

0.06%

0.08%

South East

 234

 197

 251

0.07%

0.06%

0.08%

Grand Total

 1,564

 1,391

 1,694

0.08%

0.07%

0.09%

Source: pH, an Experian company

 

Number of employees

Insolvencies Sept 10

Insolvencies  August 10

Insolvencies  Sept 09

% of business population failing Sept 10

% of business population failing August 10

% of business population failing Sept 09

1-2

 467

 376

 477

0.05%

0.04%

0.05%

3-5

 205

 190

 221

0.05%

0.04%

0.05%

6-10

 256

 233

 260

0.12%

0.10%

0.12%

11-25

 206

 218

 269

0.16%

0.17%

0.21%

26-50

 234

 206

 264

0.23%

0.20%

0.26%

51-100

 99

 89

 100

0.21%

0.19%

0.21%

101-500

 46

 37

 56

0.17%

0.14%

0.21%

501+

 36

 29

 40

0.14%

0.11%

0.15%

Unspecified

 15

 13

 7

0.16%

0.14%

0.07%

Grand Total

 1,564

 1,391

 1,694

0.08%

0.07%

0.09%

Source: pH, an Experian company

 

Sector

Insolvencies Sept 10

Insolvencies  August 10

Insolvencies  Sept 09

% of business population failing Sept 10

% of business population failing August 10

% of business population failing Sept 09

Extractive Industries

 1

 -  

 -  

0.07%

0.00%

0.00%

Oil

 -  

 4

 3

0.00%

0.14%

0.09%

Building and Construction

 260

 247

 281

0.16%

0.15%

0.17%

Building Materials

 8

 3

 5

0.21%

0.08%

0.13%

Chemicals Industry

 2

 3

 2

0.07%

0.11%

0.07%

Diversified Industrials

 32

 41

 48

0.15%

0.19%

0.22%

Electricals

 12

 11

 14

0.13%

0.12%

0.16%

Engineering

 45

 50

 68

0.11%

0.12%

0.18%

Printing, Paper and Packaging

 7

 6

 8

0.23%

0.19%

0.32%

Textiles and Clothing

 17

 22

 33

0.12%

0.15%

0.24%

Breweries

 2

 -  

 1

0.42%

0.00%

0.21%

Spirits, Wine and Tobacco

 1

 -  

 -  

0.21%

0.00%

0.00%

Food Manufacturing

 3

 12

 13

0.05%

0.19%

0.26%

Pharmaceuticals

 6

 2

 1

0.49%

0.16%

0.11%

Wholesaling

 61

 71

 83

0.10%

0.11%

0.13%

Leisure and Hotels

 113

 105

 107

0.13%

0.12%

0.13%

Media

 73

 47

 56

0.11%

0.07%

0.09%

Food Retailing

 12

 13

 9

0.08%

0.08%

0.06%

Non-Food Retailing

 74

 83

 102

0.09%

0.10%

0.12%

Servicing/Repair

 6

 6

 4

0.08%

0.07%

0.05%

Transport

 63

 52

 62

0.12%

0.10%

0.12%

Utilities

 1

 3

 2

0.05%

0.14%

0.11%

Postal and Telecommunications

 10

 6

 4

0.12%

0.07%

0.05%

Agriculture, Forestry and Fishing

 4

 5

 8

0.02%

0.02%

0.04%

Banking and Financial Services

 65

 51

 57

0.12%

0.10%

0.11%

Health and Household

 -  

 -  

 -   

0.00%

0.00%

0.00%

Business Services

 348

 293

 373

0.06%

0.05%

0.07%

Hiring and Leasing

 15

 12

 24

0.11%

0.09%

0.18%

Property

 85

 78

 105

0.06%

0.05%

0.06%

Other Services

 101

 62

 88

0.05%

0.03%

0.05%

Plastics & Rubber

 8

 17

 10

0.12%

0.26%

0.17%

Insurance

 12

 3

 6

0.10%

0.03%

0.05%

IT

 67

 44

 54

0.06%

0.04%

0.05%

Motor Traders

 37

 26

 42

0.10%

0.07%

0.12%

Unspecified

 13

 13

 21

0.01%

0.01%

0.02%

Grand total

 1,564

 1,391

 1,694

0.08%

0.07%

0.09%

Source: pH, an Experian company

 

ENDS
Contact:
Natalie Hale 
0115 992 2645/07971 709274
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.







Top