Largest companies in the UK demonstrate resilience in May 2011

Largest companies in the UK demonstrate resilience in May 2011

Nottingham, 1 July 2011 — Experian, the global information services company, published its latest Business Insolvency Index today, revealing that the UK’s largest companies performed well in May 2011, experiencing the biggest fall in insolvencies compared to any other business size.  Those employing over 501 employees saw a fall in insolvencies from 0.16 per cent in May last year to 0.10 per cent in May this year and those companies employing 101-500 employees saw the insolvency rate decrease from 0.14 per cent to 0.10 per cent year on year.

Overall, out of 1,674 UK companies, 0.09 per cent of the active business community became insolvent in May 2011, compared to 1,491 companies (0.08 per cent) in the same period in 2010. 

Regional trends

The South West experienced a fall in business insolvencies with just 0.06 per cent of firms failing in May, compared to 0.07 per cent the year before.

In contrast, the eastern parts of the country witnessed a less positive picture against this time last year.  The East Midlands had the biggest increase in failures, rising to 0.10 per cent in May from 0.07 per cent last year, while insolvencies also increased in the North East, Yorkshire, East Anglia and South East.

Yorkshire recorded the highest level of insolvencies, with 0.13 per cent of the business population failing, up from 0.11 per cent in May 2010.

Sectors

It was positive news for Insurance companies in May with the rate of insolvencies dropping from 0.12 per cent last year to 0.04 per cent this year.  Food retailers continued to be the lowest performing industry in terms of financial strength, with the average score falling from 75.92 last May to 74.60 this year.

Max Firth, Managing Director of Business Information Services at Experian UK & Ireland, comments: “The increase in insolvencies was relatively small and at 0.09 per cent, the rate is actually an improvement on April 2011, which was at 0.10 per cent.  However in all economic climates, we urge businesses to ensure they effectively manage risk around their portfolio.  Tracking variations in insolvency rates and business strength across region, company size and sector, continues to be one of the ways we help businesses manage this.”

Source: pH, an Experian company

Source: pH, an Experian company

Source: pH, an Experian company

ENDS

Contact:

Chantal Heckford / Jennifer Comerford / Duncan Skehens
Lansons Communications
020 7490 8828
chantalh@lansons.com / jenniferc@lansons.com / duncans@lansons.com

About Experian

Experian is the leading global information services company, providing data and analytical tools to clients in more than 80 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 2011 was US$4.2 billion. Experian employs approximately 15,000 people in 41 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and São Paulo, Brazil. 

For more information, visit http://www.experianplc.com.

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