Fewer large companies fail in September
Scotland maintains lowest regional insolvency rate
Nottingham UK, 23rd October 2011 - The latest Insolvency Index from Experian® has revealed that the largest companies in the UK – those employing 501 or more employees – experienced a year on year fall in the number of insolvencies during September. Just 11 large firms failed in September 2011, 25 per cent fewer than the same period in 2010.
Across the entire UK business population, the rate of insolvencies increased. 0.09 per cent of British businesses failed in September, up from 0.08 per cent in September last year. The insolvency rate is calculated by comparing the number of businesses that failed with the total business population in Great Britain.
The average financial strength score1 for UK businesses fell for the seventh consecutive month, to 78.80 in September, compared to 81.05 in September 2010. However, large companies saw their financial strength score improve from 84.63 to 85.87.
Micro businesses employing just one or two people experienced the biggest annual rise in insolvencies during September, increasing by 25 per cent to 258. This represented 0.06 per cent of the UK’s total business population.
Although the North East of England saw the biggest drop in its failure rate from 0.15 per cent to 0.13 per cent, it remained the region with the highest rate of insolvencies. Scotland maintained the lowest insolvency rate with 0.07 per cent, while the West Midlands witnessed the biggest rate increase from 0.08 per cent in September 2010 to 0.11 per cent in September 2011.
Oil companies remained the strongest in September 2011 with a financial strength score of 84.21 while food retailers were the worst performing with a score of 73.76.
Max Firth, Managing Director of Experian Business Information Services in the UK & Ireland, said: “While larger businesses bucked the trend in September, our analysis underlines how important it is that companies understand the financial strength of their customers, suppliers and business partners. This kind of accessible and valuable insight can make all the difference to a business of any size. ”
1The 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.
Region |
Insolvencies |
% change from |
% of business population failing |
% of business population failing |
Financial Strength Score |
Financial Strength Score |
Scotland |
78 |
-6.02 |
0.07% |
0.07% |
79.78 |
80.89 |
North East |
55 |
-8.33 |
0.13% |
0.15% |
79.79 |
81.25 |
North West |
196 |
-3.92 |
0.10% |
0.11% |
78.28 |
80.50 |
Yorkshire |
123 |
2.50 |
0.10% |
0.10% |
78.90 |
81.11 |
Wales |
63 |
26.00 |
0.11% |
0.09% |
79.02 |
80.66 |
West Midlands |
170 |
29.77 |
0.11% |
0.08% |
78.26 |
80.18 |
East Midlands |
92 |
-4.17 |
0.08% |
0.09% |
79.61 |
81.40 |
Eastern |
140 |
26.13 |
0.08% |
0.06% |
79.91 |
81.94 |
South West |
135 |
29.81 |
0.09% |
0.07% |
81.08 |
82.74 |
Greater London |
430 |
15.90 |
0.09% |
0.08% |
76.56 |
79.87 |
South East |
250 |
6.84 |
0.08% |
0.07% |
80.13 |
82.22 |
Grand Total |
1,732 |
10.74 |
0.09% |
0.08% |
78.80 |
81.05 |
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 |
258 |
25.85 |
0.06% |
0.05% |
82.26 |
82.25 |
3-5 |
288 |
12.50 |
0.13% |
0.12% |
81.34 |
81.86 |
6-10 |
213 |
3.40 |
0.16% |
0.16% |
81.26 |
81.41 |
11-25 |
205 |
-12.39 |
0.20% |
0.23% |
81.22 |
81.16 |
26-50 |
110 |
11.11 |
0.23% |
0.21% |
81.18 |
81.09 |
51-100 |
41 |
-10.87 |
0.15% |
0.17% |
81.17 |
80.92 |
101-500 |
39 |
8.33 |
0.15% |
0.14% |
82.41 |
82.09 |
501+ |
11 |
-26.67 |
0.12% |
0.16% |
85.87 |
84.63 |
Unspecified |
567 |
21.41 |
0.06% |
0.05% |
75.66 |
80.21 |
Grand Total |
1,732 |
10.74 |
0.09% |
0.08% |
78.80 |
81.05 |
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 |
1 |
0.00 |
0.07% |
0.07% |
80.50 |
82.54 |
Oil |
2 |
0.00 |
0.07% |
0.00% |
84.21 |
85.88 |
Building & Construction |
280 |
7.69 |
0.17% |
0.16% |
76.40 |
77.58 |
Building Materials |
6 |
-25.00 |
0.16% |
0.21% |
78.67 |
79.84 |
Chemicals Industry |
1 |
-50.00 |
0.04% |
0.07% |
80.65 |
81.92 |
Diversified Industrials |
32 |
0.00 |
0.15% |
0.15% |
76.95 |
77.95 |
Electricals |
6 |
-50.00 |
0.07% |
0.13% |
78.60 |
79.22 |
Engineering |
62 |
37.78 |
0.16% |
0.11% |
78.75 |
79.41 |
Printing, Paper & Packaging |
7 |
0.00 |
0.21% |
0.23% |
78.20 |
78.59 |
Textiles & Clothing |
29 |
70.59 |
0.20% |
0.12% |
75.11 |
76.46 |
Breweries |
3 |
50.00 |
0.63% |
0.42% |
76.63 |
79.68 |
Spirits, Wine & Tobacco |
- |
-100.00 |
0.00% |
0.21% |
80.44 |
82.70 |
Food Manufacturing |
6 |
100.00 |
0.09% |
0.05% |
76.84 |
77.94 |
Pharmaceuticals |
- |
-100.00 |
0.00% |
0.49% |
81.90 |
81.71 |
Wholesaling |
75 |
22.95 |
0.12% |
0.10% |
78.57 |
79.76 |
Leisure & Hotels |
109 |
-3.54 |
0.12% |
0.13% |
77.61 |
79.35 |
Media |
58 |
-20.55 |
0.09% |
0.11% |
78.88 |
80.59 |
Food Retailing |
21 |
75.00 |
0.13% |
0.08% |
73.76 |
75.68 |
Non-Food Retailing |
100 |
35.14 |
0.12% |
0.09% |
77.22 |
78.84 |
Servicing / Repair |
4 |
-33.33 |
0.05% |
0.08% |
81.33 |
82.13 |
Transport |
51 |
-19.05 |
0.10% |
0.12% |
77.39 |
78.44 |
Utilities |
2 |
100.00 |
0.08% |
0.05% |
76.37 |
79.63 |
Postal & Telecommunications |
10 |
0.00 |
0.12% |
0.12% |
74.41 |
76.34 |
Agriculture, Forestry & Fishing |
7 |
75.00 |
0.03% |
0.02% |
83.84 |
85.04 |
Banking & Financial Services |
68 |
4.62 |
0.13% |
0.12% |
82.42 |
83.96 |
Health & Household |
1 |
0.00 |
0.12% |
0.00% |
77.91 |
79.30 |
Business Services |
418 |
20.11 |
0.08% |
0.06% |
78.67 |
81.44 |
Hiring & Leasing |
20 |
33.33 |
0.15% |
0.11% |
80.80 |
81.55 |
Property |
110 |
29.41 |
0.07% |
0.06% |
80.59 |
82.41 |
Other Services |
101 |
0.00 |
0.05% |
0.05% |
83.81 |
85.91 |
Plastics & Rubber |
7 |
-12.50 |
0.10% |
0.12% |
77.54 |
78.13 |
Insurance |
5 |
-58.33 |
0.04% |
0.10% |
82.93 |
84.18 |
IT |
53 |
-20.90 |
0.05% |
0.06% |
81.02 |
83.52 |
Motor Traders |
41 |
10.81 |
0.11% |
0.10% |
79.04 |
80.09 |
Unspecified |
36 |
176.92 |
0.03% |
0.01% |
67.33 |
75.47 |
Grand total |
1,732 |
10.74 |
0.09% |
0.08% |
78.80 |
81.05 |
Source: pH, an Experian company
ENDS
Contact:
Chantal Heckford / Jennifer Comerford / Duncan Skehens
Lansons Communications
020 7490 8828
chantalh@lansons.com
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jenniferc@lansons.com
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duncans@lansons.com
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