Insolvencies in the IT sector shot up by nearly 25 per cent in July, despite an overall drop in businesses going bust across the UK.
The latest Business Insolvency Index from Experian revealed that a total of 1,776 companies (0.09 per cent of the business population) failed, compared with 1,962 firms (0.10 per cent) in July 2011.
According to the results break down, insolvencies in the IT sector represented 0.06 per cent of the total business community in July 2012, compared with 0.05 per cent in 2011. However, in general terms, the biggest improvement in business performance came from firms with 501 employees or more, and smaller firms with 11 to 25 employees.
Max Firth, managing director of Experian Business Information Services UK and Ireland, said: "Since March this year, when the insolvency rate peaked at 0.11 per cent, it has remained fairly stable – between 0.08 per cent and 0.09 per cent. The lack of any real increase is clearly welcome and this picture is unlikely to change in the near future.
"The figures continue to underline the importance of good insight into the financial risks associated with insolvencies among both clients and suppliers and how these issues can affect their business."
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