The total number of insolvencies in the UK fell by 12.5% in February compared with the same month last year, bringing the rate of insolvencies down from 0.10% to 0.08%.
The results of the latest Insolvency Index from Experian also revealed a continued improvement in the overall financial score of UK businesses, which rose from 81.18 in February 2010 to 81.60 in February 2011. This is also a month-on-month improvement from 81.49 in January.

Max Firth, managing director of Experian company pH, said: "The period of stability for businesses in the UK continues to head in a positive direction overall. However, whilst smaller and larger companies are improving, insolvency rates for the midsized companies continue at the same rate month on month. This could mean that in more challenging times they fall victim to being too large to be flexible and too small to rely on a solid, established business structure and long-term contracts."

Scotland saw the greatest improvement with the lowest insolvency rate at 0.06%. Meanwhile Wales saw the biggest increase, with the rate rising to 0.11% up from 0.08% in February last year. Yorkshire was the worst performing region, with a rate of 0.13%.

The non-food retailing sector saw the number of insolvencies fall from 121 in February last year to 109 in February 2011.