Essential reading for retailers and suppliers in the home improvement market

UK business community at its strongest since last summer

Published: 24 November 2009
Latest Insolvency Index reveals that businesses are in a stronger financial position, with a smaller chance of failure in the coming year.
UK business community at its strongest since last summer
The Index from Experian revealed that, while the average business insolvency rate increased slightly in October, the UK's business community as a whole is now at its strongest financially since July 2008.

The average financial strength score of active businesses reached 81.14 during October - up from 79.80 in October 2008. According to Experian, this indicates that businesses on the whole are in a stronger financial position than previously, with a smaller chance of failure in the next 12 months.

The business insolvency rate rose from 0.09% in September this year to 0.10% in October, with 10 businesses in every 10,000 going under. However, this still represents a slight improvement on October last year, when the insolvency rate was at 0.11%.

Smaller businesses, with one to two employees remained the most resilient, with only 0.06% failing during October. Firms in this category also demonstrated the highest improvement in their financial strength score during last month, up to 82.22.

Experian company, pH's managing director Rolf Hickman said: "Throughout 2008, the average financial strength score had been seeing a downward trend but 2009 has seen a reversal. The financial solidity of UK businesses has been improving over the year.

"This has impacted on the insolvency rate, which has remained fairly stable since July... If the financial strength of businesses continues to improve, we could see insolvencies maintain a low level and even start to fall."

The Index also revealed that the South West was the only region in the UK to see a year-on-year fall in the insolvency rate, while all others saw an increase. Yorkshire had the highest insolvency rate of any region and saw the highest month-on-month increase.

The highest insolvency rates were among businesses with 11 to 25 and 26 to 50 employees, while businesses with more than 501 employees had the best financial strength score during October but were the only business type to see a year-on-year deterioration, from 84.92 in October 20008 to 84.67 in the same month this year.

Comments


(Your email address will not be published)
Already Registered?
Sign In
Not Yet Registered?
Register
Printable View E-mail Bookmark
*

What do you think?


As a retailer, what do you struggle most with in the adhesives & sealants category?





Latest reader comments

re: Toolstation.com excels in Which? website survey

Ray Pearce
Toolstation is always straight forward from ordering from the catalogue to receiving the items and a comfortable welcoming place to browse ...

re: Better Bathrooms goes into administration

Carolyn Muggleton
HiWe purchased a shower enclosure from Better Bathrooms which we have returned to them and asked for our money back.. The amount we ...

re: Woolworths staff reunited by new website

Pam Jones
looking for Brian Finch who worked as an undermanager to Mr. Cotton in Ebbw Vale woolworths....

re: 13-year-old's invention goes into production

Gel
No point in responding to an 8 year old post!...

re: Capitol Tiles outlets snapped up by BC Ceramics

Beryl smith
Hi I bought some black tiles called night black by capitol tiles I need some spares do you know where I can get them thanks Beryl...

Most read stories