Published on 17 - May - 2010
UK business insolvencies drop a further 15% in AprilSmall businesses showed "great resilience" last month, says Experian, while mid-sized companies fared the worst.
The latest Insolvency Index from Experian has revealed a year-on-year fall in business insolvencies in the UK last month.
The total number of insolvencies fell by 15.1% in April compared with the same month last year - from 2,274 in April 2009 to 1,818 in April 2010.
The overall financial strength score of UK businesses also improved, from 80.02 in April 2009 to 80.76 in April this year.
Mid sized businesses were also found to have suffered the most in April. Companies with 26-50, 51-100 and 101-500 employees experienced the highest rate of insolvencies last month at 0.22%, 0.26% and 0.24% respectively.
Managing director of Experian company, pH, Rolf Hickmann said: "Our analysis shows that it continues to be vital for businesses to understand the circumstances of those they are doing business with and the risks they could expose their company to.
It is easier for the smallest businesses, with just one or two employees, to make adjustments to their operations and pull in the reins when times are challenging. For the largest business, there is the flexibility that comes with the economies of scale, so insolvency rates among these extremes of business type are also low. Mid-sized businesses do not typically have the luxury of either of these benefits and can face the most pressure."
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