The IT sector was one of a handful to see a slight increase in insolvencies in February, according to market watcher Experian.
In total, the number of IT firms going bust in February 2013 stood at 89, as opposed to 69 in the same month last year.
Business services firms and construction also saw the number of failing firms in their sectors increase. Overall Experian’s Business Insolvency Index recorded a grand total of 1,646 UK firms that failed during February, compared with 1,877 in February 2012.
Firms with 101 to 500 employees saw a drop in insolvencies for the third month running according to Experian, with companies of 501 employees or more also seeing a second consecutive month of failure decline, throwing insolvencies back to the levels they were last February.
The only businesses that showed an increase in their insolvency rate compared with February 2012 were those with between 51 and 100 employees. They saw their rate rise from 0.12 per cent last year to 0.16 per cent in February 2013.
Max Firth, managing director of Experian Business Information Services UK&I, said: “The falling insolvency rate among the UK’s larger firms will impact positively on the wider supply chain, often smaller businesses.
“The overall lower level of insolvencies is also encouraging to see. Much has been made of the argument that low insolvency rates are in part due to ‘zombie businesses’ – weak firms unable to do more than survive and pay off the interest on their debt.
“Many of the weaker businesses failed during 2008-2009 when insolvency rates were high and more businesses closed than started up, leading to the business population reducing by seven per cent. The firms that have since survived are now more robust. Furthermore, we are once again seeing more businesses starting up than closing.”
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