Business failure fall
August 19th, 2010 by Richard Aucock
EXPERIAN has reported a big 33 percent reduction in business insolvencies for June 2010 compared to last year.
It means 0.08 percent of the UK business population failed, compared to 0.12 percent last year.
Business financial strength is also up, both on last month and last year. However, it still isn’t as high as the 12 month peak seen in December 2009.
Medium sized companies fared best of all – 56 percent fewer businesses sized between 101-500 employees went to the wall last month. That equals 30 firms. Failure rates for the largest firms rose, though.
And car dealers in particular? 35 failed in July 2010, compared with 50 last year. Despite this though, the financial strength of the sector has actually fallen, and is below the UK business average.
Max Firth, managing principal of Experian firm pH, said: ‘July’s data indicates that the SME population is faring much better in terms of insolvencies than it did this time last year.’
He fired a warning not to be complacent, though. ‘Increasing failures at the top end of the market demonstrates clearly that there is a still a great deal of uncertainty.
‘Given this ever changing picture, it is vital that organisations ensure they understand and proactively manage the risk that those they do business with exposes them to.’
Tags: business health, experian, failure, insolvency