UK insolvencies creep up in October

Latest Experian figures reveal a slight increase in the number of firms going bust as economic pressures continue to mount

The number of firms going bust increased in October, according to the latest figures from Experian.

A total of 0.10 per cent of the UK business population entered insolvency, compared with 0.09 per cent in September 2011 and 0.08 per cent in October 2010.

The South-West of England was the best-performing region, while the West Midlands overtook the North-East as the worst-performing region, with an insolvency rate of 0.13 per cent.

UK businesses amassed an average financial strength score of 78.44 in October, but larger companies saw their financial strength score improve from 84.8 last year to 85.8 in October.

In the IT industry, the number of firms going to the wall increased by 27 per cent to 74, but still had a strong average business score of 80.5.

Max Firth, UK and Ireland managing director for business information services at Experian, said: “While 0.10 per cent represents a very small percentage of the UK’s business population failing in October, we are seeing an increase in insolvencies across most sizes of business.

“As a result of this, more and more businesses are now acutely aware of the importance of having a good understanding about the companies they deal with. Using commercial information to gain insight into a customer, partner or supplier’s financial health is a highly effective way of helping businesses make even smarter decisions in today’s environment.”