UK business insolvencies down 15 per cent year-on-year in April

The latest Insolvency Indexfrom Experian®, the global information services company, has revealed a year-on-year fall in business insolvencies during April in the UK.

The total number of insolvencies fell by 15.1 per cent during April compared to the same month last year - from 2,274 in April 2009 to 1, 818 in April 2010. As a result, this brought the year-on-year insolvency rate down from 0.11 per cent to 0.10 per cent in April.

The overall financial strength score[1] of UK businesses also improved, from 80.02 in April 2009 to 80.76 in April this year.

Mid sized businesses suffered the most in April. Companies with 26-50, 51-100 and 101-500 employees experienced the highest rate of insolvencies in April 2010 at 0.22, 0.26 and 0.24 per cent respectively.

Rolf Hickmann, Managing Director of pH, an Experian company, said: "Our analysis shows that it continues to be vital for businesses to understand the circumstances of those they are doing business with and the risks they could expose their company to."

"It is easier for the smallest businesses, with just one or two employees, to make adjustments to their operations and pull in the reins when times are challenging. For the largest business, there is the flexibility that comes with economies of scale, so insolvency rates among these extremes of business type are also low. Mid-sized businesses do not typically have the luxury of either of these benefits and can face the most pressure."