SME failure rate falls
Rate of business insolvencies slows
Number of UK business closures falls
Councils concerned about suppliers' financial robustness
Rok collapse leaves buyers picking up the pieces
22 November 2010 | Lindsay Clark
Business insolvencies in the UK fell by 17 per cent year on year in October.
Figures from information services company Experian show that 1,635 UK businesses failed last month, down from 1,976 recorded in October 2009.
Despite the recent high-profile administrations at building firms Connaught and Rok, the figures may provide buyers with some reassurance that stability is returning to the supply base following the recession.
This equates to an insolvency rate of 0.08 per cent of the business population in October 2010, compared with 0.10 per cent in 2009, and generally reflects a long-term improvement.
The only businesses to register an annual increase in insolvencies were mid-sized companies. In firms with between 51 and 100 employees, the insolvency rate leapt to 0.24 per cent in October this year from 0.19 per cent a year earlier.
Max Firth, managing principal of pH, an Experian company, said: “It is encouraging that the business population in general is faring better in terms of insolvencies than this time last year, despite mid-market failures increasing in October.
“It remains key for organisations to ensure they use data insight to help them understand and manage the risks in today’s marketplace.”
Yorkshire and north-east England, the regions with the highest insolvency rate in October 2009, made the biggest annual improvements.
In the north east, 0.11 per cent of businesses failed in October 2010, compared with 0.14 per cent 12 months earlier, while Yorkshire recorded a fall in the insolvency rate from 0.15 per cent to 0.07 per cent.