| July 2, 2001 The number of businesses going bust increased by more than 15% in the second quarter of this year (compared with the first quarter). However, the half-yearly toll has not yet exceeded last years figures for the same period according to the latest figures released today by Dun & Bradstreet, the business information company. More small businesses appear to be failing while large company liquidations are continuing to decline. Mr Philip Mellor, Senior Analyst at D&B commented: "Apart from London, it looks as though the trend which showed the rate of business failures dropping by more than 12% during the first part of this year has been reversed. Failures are now starting to climb upwards again. This rise is in part due to the drop in tourism and other adverse factors caused by the foot and mouth epidemic. There is evidence that business failures in the South West and North West of the country - the regions most affected - increased significantly during the second quarter of the year." There have so far been 20,164 business failures in the first six months of this year which is 0.5% below the same figure for the first half of last year (20,264). These consist of 9,360 failures during the first quarter followed by 10,804 in the second quarter - an increase of 15.4% between quarters. In fact the 10,804 failure level is 13% up on the second quarter¿s figures in 2000. The picture throughout the country is uneven. The largest increase in business failures over the six month period (compared with the previous year) has been in the North East where business failures have increased by more than 12%. In fact business failures during the second quarter in this region were two-thirds up on the first quarter. The second worst-affected area is Scotland where business failures have increased by 7%. They have also increased by 4.5% in the West Midlands. While the South West and North West regions have shown a continuing decline in business failures of 9% and 1% respectively, second quarter figures for business failures were well up on the first quarter's figures in both regions. In the South West there were 1,243 business failures in the second quarter as compared with 851 in the first - an increase of 46%. In the North West there were 1,271 business failures in the second quarter as compared to 1,106 in the first quarter - an increase of about 15%. The biggest decrease in business failures over the first six months was in Wales but here again business failures rose by 42% between the quarters from 304 to 432. Smaller company bankruptcies appear to be responsible for the reversal of the failure trend. There were 11,694 business bankruptcies during the first six months of this year an increase of 1.7%. The rate of larger company liquidations continues to drop with a 3.4% decrease recorded down to 8,470 liquidations during the first six months. Further information from Philip Mellor on 01494 423346 (office) or 07802 757679 (mobile) or from Tim Devlin on 01580 893176. Regional Highlights
| London | London recorded 2,506 business failures during the first half of 2001, an increase of 1.9% on 2000. This accounted for 12.4% of the total for Britain. At 2,032 liquidations increased by 4.5% and bankruptcies at 474 decreased by 7.8%. | | South East | South East recorded 3,545 business failures during the first half of 2001, a decrease of 8.2% on 2000. This accounted for 17.6% of the total for Britain. At 1,583 liquidations decreased by 10.7%, and bankruptcies at 1,962 decreased by 6.1%. | | Eastern | Eastern region recorded 966 business failures during the first half of 2001, an increase of 0.8% on 2000. This accounted for 4.8% of the total for Britain. At 222 liquidations increased by 4.7%, and bankruptcies at 744 decreased by 0.3%. | | South West | South West recorded 2,094 business failures during the first half of 2001, a decrease of 8.9% on 2000. This accounted for 10.4% of the total for Britain. At 701 liquidations decreased by 4.4%, and bankruptcies at 1,393 decreased by 11.1%. | | East Midlands | East Midlands recorded 1,211 business failures during the first half of 2001, an increase of 0.3% on 2000. This accounted for 6% of the total for Britain. At 397 liquidations decreased by 15%, and bankruptcies at 814 increased by 10%. | | West Midlands | West Midlands recorded 1,675 business failures during the first half of 2001, an increase of 4.5% on 2000. This accounted for 8.3% of the total for Britain. At 696 liquidations decreased by 0.4%, and bankruptcies at 979 increased by 8.4%. | | North West | North West recorded 2,377 business failures during the first half of 2001, a decrease of 1% on 2000. This accounted for 11.8% of the total for Britain. At 982 liquidations decreased by 11%, and bankruptcies at 1,395 increased by 7.5%. | | North East | North East recorded 2,791 business failures during the first half of 2001, an increase of 12.2% on 2000. This accounted for 13.8% of the total for Britain. At 909 liquidations increased by 9.5%, and bankruptcies at 1,882 increased by 13.6%. | | Wales | Wales recorded 736 business failures during the first half of 2001, a decrease of 15.9% on 2000. This accounted for 3.6% of the total for Britain. At 202 liquidations decreased by 22.6%, and bankruptcies at 534 decreased by 13%. | | Scotland | Scotland recorded 2,263 business failures during the first half of 2001, an increase of 7% on 2000. This accounted for 11.2% of the total for Britain. At 746 liquidations increased by 3%, and bankruptcies at 1,517 increased by 10.7%. | TABLE 1
| Total Business Failures UK (Except Northern Ireland) January to June 2000/2001 | Region | 2000 | 2001 | % Change | London | 2,459 | 2,506 | 1.9% | South East | 3,861 | 3,545 | (8.2%) | East | 958 | 966 | 0.8% | South West | 2,300 | 2,094 | (8.9%) | East Midlands | 1,207 | 1,211 | 0.3% | West Midlands | 1,602 | 1,675 | 4.5% | North West | 2,401 | 2,377 | (1%) | North East | 2,487 | 2,791 | 12.2% | Wales | 875 | 736 | (15.9%) | Scotland | 2,114 | 2,263 | 7% | TOTAL | 20,264 | 20,164 | (0.5%) |
TABLE 2
| Total Business Failures Comparison 1st Quarter 2001 v 2nd Quarter 2001 | | REGION | 1st Quarter 2001 | 2nd Quarter 2001 | increase/decrease | | London | 1,483 | 1,023 | (31%) | | South East | 1,644 | 1,901 | 15.6% | | Eastern | 428 | 538 | 25.7% | | South West | 851 | 1,243 | 46.1% | | East Midlands | 571 | 640 | 12.1% | | West Midlands | 769 | 906 | 17.8% | | North East | 1,051 | 1,740 | 65.5% | | North West | 1,106 | 1,271 | 14.9% | | Wales | 304 | 432 | 42.1% | | Scotland | 1,153 | 1,110 | (3.7%) | | U.K. (except N.I.) | 9,360 | 10,804 | 15.4% | TABLE 3
Business Failures Report - United Kingdom except N. Ireland Limited Company liquidations and bankruptcies of sole traders, partnerships etcEngland, Wales& Scotland | | Q1 | Q2 | Q3 | Q4 | Total | | 1990 | 5,824 | 8,074 | 5,700 | 9,337 | 28,935 | | 1991 | 9,622 | 13,539 | 10,371 | 14,245 | 47,777 | | 1992 | 14,881 | 15,440 | 16,224 | 16,222 | 62,767 | | 1993 | 15,443 | 17,005 | 10,921 | 12,364 | 55,733 | | 1994 | 11,651 | 11,765 | 10,799 | 9,473 | 43,688 | | 1995 | 9,909 | 11,033 | 10,379 | 9,982 | 41,303 | | 1996 | 11,430 | 9,290 | 9,694 | 10,693 | 41,107 | | 1997 | 10,329 | 9,633 | 8,432 | 7,974 | 36,368 | | 1998 | 9,185 | 10,051 | 9,943 | 9,455 | 38,634 | | 1999 | 11,093 | 10,194 | 11,741 | 10,337 | 43,365 | | 2000 | 10,710 | 9,554 | 10,661 | 9,922 | 40,847 | | 2001 | 9,360 | 10,804 | | | | Dun & Bradstreet (NYSE:DNB), the world's leading provider of business information, has been enabling business-to-business commerce for nearly 160 years. D&B's information and technology solutions help businesses reduce credit risk, find profitable customers and manage vendors efficiently. Businesses also use D&B's information and technology to authenticate and verify potential trading partners online, increasing their trust and confidence in e-commerce transactions. That's why so many companies including over 90 percent of the Business Week Global 1000 rely on D&B as the most trusted source for information they need to make their business a success. For more information, please visit www.dnb.com. |
