news release

March insolvency figures reveal increased resilience amongst mid-sized firms

Scottish insolvencies stay low for the fourth month running
North East businesses see significant falls over two years

Nottingham, 7 May 2013 – The latest Business Insolvency Index from Experian®, the global information services company, reveals that medium-sized firms which have struggled the most in recent years saw fewer insolvencies during March 2013.

The insolvency rate among businesses with 25-50 employees fell by 0.07 per cent from 0.24 per cent in March 2012 to 0.17 per cent in March 2013 – almost back to the levels seen in March 2007 of 0.16 per cent and nearly half their peak of 0.35 per cent in March 2009. 

Insolvencies also fell by 0.07 per cent amongst businesses with 11-25 employees, down from 0.25 per cent in March 2012 to 0.18 per cent in March 2013.

The analysis shows that across the UK, the insolvency rate remained a 0.08 per cent of the business population for the second consecutive month this year.  1,736 firms failed during March 2013 – an improvement on March 2012 when the insolvency rate stood at 0.11 per cent.

Max Firth, Managing Director, Experian Business Information Services, UK&I said: “The fact that mid-tier businesses are seeing lower rates of insolvency is encouraging. These companies have struggled more than most during the recession as they are not necessarily small enough to be flexible, but are also not big enough to benefit from economies of scale. 

“The overall rate of insolvencies for the first three months of 2013 is a significant improvement on the equivalent months in 2012 – from 0.27 per cent to 0.22 per cent.  Today’s figures point to a more benign trading environment and suggest that companies are becoming much better at anticipating risk, getting their credit policies in shape and developing better relationships with customers.”

Regional statistics
Taking a two-year snapshot of the regions, figures show that firms in the North East have fared the best with the insolvency rate decreasing by 0.10 per cent since March 2011 – the biggest fall compared to other regions and twice the drop of the next region – the East Midlands.

Sector view
Of the UK’s top five biggest industries, Building and Construction saw the biggest fall in the insolvency rate year-on-year – from 0.19 per cent in March 2013 to 0.15 per cent in March 2012. Other big fallers year-on-year include insurance, breweries, leisure and hotels and utilities.

ENDS

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Contact:
Serj Heera
Head of PR
Credit Services
T: 44 (0) 115 992 2773 | M: 44 (0) 7837 652169
E:serjeet.heera@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.

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