Global information services company Experian has revealed that businesses with 51 to 100 employees saw a significant fall in insolvency rates year-on-year, from 0.20 per cent in February 2011 to 0.12 per cent in February this year.
This segment of the business population also saw the biggest year-on-year improvement in their financial strength score.
The figure did not mask, however, the fact that the rate of insolvencies among UK businesses rose from 0.08 per cent in February 2011 to 0.10 per cent during February 2012.
Medium-to-large sized firms (101 to 500 employees) led the way into insolvencies, year-on-year, with a rise from 0.12 per cent in February last year to 0.17 per cent for February 2012.
UK MD for Experian’s Business Information Services division, Max Firth, said: “Although business insolvencies increased slightly in February, our data is showing that UK business balance sheets have been improving gradually since August. Any increase in insolvencies among medium and large businesses highlights a riskier environment, particularly for the smaller firms that supply to them. Our insolvency figures underline the importance for smaller businesses to take as much care as their larger counterparts do when checking the credit worthiness of suppliers and customers before doing businesses with them.”
The pharmaceuticals and buildings industries showed the highest rate of insolvencies, while businesses in Wales fared best in February 2012, according to the new Experian data.
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