Business insolvencies remain stable in November
The latest BusinessIQ Insolvency Index from Experian®, the global information services company, reveals a stable picture, with the number of business insolvencies during November 2012, standing at 0.09 per cent.
The data shows that 0.09 per cent of the business population (1,830 companies) failed in November 2012, compared to the same figure in November of 2011 and 0.08 per cent in October 2012.
The greatest improvement in the average rate of insolvencies was seen by firms with 11 to 25 employees - their insolvency rate fell from 0.24 per cent in November 2011 to 0.20 per cent in November 2012, while other sizes of firms remained broadly consistent.
Figures for Wales showed the rate of insolvencies were down to 0.06 per cent, a significant drop on last year when the rate was 0.11 per cent. It is now at the lowest rate since December 2010.
Max Firth, Managing Director, Experian Business Information Services, UK&I said: “The continuing stability within business insolvencies is encouraging and if the trend continues for the December business insolvency figures, then it’s likely the insolvency rate for 2012 will be lower than experienced in 2011, despite having spent a significant portion of the year in a double dip recession. Nonetheless, insolvency rates are yet to fall to the levels seen before the credit crunch, so it is important for businesses of all sizes to closely monitor all clients and suppliers and as firms start to show signs of increasing stability, they need to ensure they continue to remain prudent in order to prosper.”