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% |
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% |
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% |
Managing commercial credit in today's economy can be a real challenge. That’s why Experian created a new business management system called BusinessIQ - an advanced new web portal that meets all your credit risk assessment, customer management and collection needs in one easy-to-use, integrated platform.
ENDS
Follow us on Twitter @Experian_UK for our latest news, views and insight.
Contact:
Natalie Fox
PR Manager
T: 44 (0) 115 992 2645 | M: 44 (0) 7971 709274
natalie.fox@experian.com
About Experian
Experian is the leading global information services company, providing data and analytical tools to clients around the world. The Group 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 2013 was US$4.7 billion. Experian employs approximately 17,000 people in 40 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
.