news release
Good news for businesses as insolvency rate falls in the first half of 2014
All but two regions experience fall in business failures
Nottingham, 30 July 2014 – Analysis released today from Experian®, the global information services company, reveals positive news as the overall business insolvency rate for the first six months of the year fell to 0.44 per cent from 0.47 per cent in 2013.
This was led by businesses in the North West region which saw the biggest turnaround since last year. During January to June, 0.46 per cent of the business population in the North West of England failed compared to 0.56 per cent of the business population in 2013.
There were only two areas that experienced an increase in business failures. Scotland saw a significant increase in insolvencies from 0.18 per cent in H1 2013 to 0.28 per cent in H1 2014. The South East of England also saw a minor increase, from 0.41 per cent to 0.42 per cent.
Looking at insolvencies by company size showed an overall positive picture with all performing well in H1. Only the smallest companies with 1-2 employees did not experience a fall in insolvencies as their rate remained flat at 0.32 per cent. Companies with 100-500 employees saw the biggest improvement with their insolvency rate going from 0.72 per cent to 0.51 per cent in June 2013.
Max Firth, Managing Director, Experian Business Information Services, UK&I said: “The fall in insolvencies is in line with the more positive economic backdrop. Improving business confidence and rising market demand is underpinning a greater willingness among firms to employ more people, which is good news across the UK.
“It is particularly interesting that the North West, which has seen general improvement in the economic backdrop in line with the UK as a whole, has seen better than average improvement in the insolvency rate.
“Insolvencies among the UK’s smallest firms - one and two man bands - did not worsen, but did not improve either. A key component to surviving as a small business is to keep an eye on the fortunes of their biggest customers and key suppliers. If either of these go out of business then the impact will reach them too.”
| Area |
% of business population failing in H1 2014 |
% of business population failing in H1 2013 |
| Scotland | 0.28% | 0.18% |
| North East | 0.54% | 0.58% |
| North West | 0.46% | 0.56% |
| Yorkshire | 0.57% | 0.59% |
| Wales | 0.45% | 0.52% |
| West Midlands | 0.49% | 0.49% |
| East Midlands | 0.46% | 0.54% |
| Eastern | 0.45% | 0.48% |
| South West | 0.36% | 0.40% |
| London | 0.44% | 0.48% |
| South East | 0.42% | 0.41% |
| Grand Total | 0.44% | 0.47% |
Source: pH, an Experian company
| Employment |
% of business population failing in H1 2014 |
% of business population failing in H1 2013 |
| 1-2 | 0.32% | 0.32% |
| 3-5 | 0.57% | 0.63% |
| 6-10 | 0.83% | 0.92% |
| 11-25 | 0.85% | 1.00% |
| 26-50 | 0.84% | 0.97% |
| 51-100 | 0.72% | 0.77% |
| 101-500 | 0.51% | 0.72% |
| 501+ | 0.50% | 0.67% |
| Grand Total | 0.44% | 0.47% |
BusinessIQ
The latest analysis has been compiled using some of the most comprehensive business data on the market. This data powers BusinessIQ, a new easy-to-use, integrated online platform that enables credit professionals to accurately and efficiently manage their business customers and all the risks and opportunities associated with them - from acquisition stage and throughout the life cycle of the relationship. This includes giving firms an early warning system on customers that might be getting into financial difficulty.
-ENDS-
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Contact:
Serj Heera
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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.
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 March 31, 2014, was US$4.8 billion. Experian employs approximately 16,000 people in 39 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.