Insolvency rates among UK firms fall

Date: 21st June 2010

Small business owners in the UK could be among those to be encouraged by a new report showing a decrease in the number of firms facing financial struggles.

According to a report from information services provider Experian, the number of UK businesses becoming insolvent decreased between April and May.

The 18 per cent fall between the two months means the insolvency rate for the UK is at its lowest point since January this year.

Rolf Hickmann, managing director of Experian company pH, said: "The fall in the number of insolvencies is a good sign and shows that businesses are distinctly aware of the current environment and are taking vital steps to protect themselves from risks.

"Apart from the very largest businesses, companies of all sizes saw marked improvements in insolvency rates."

However the report also showed that despite a year-on-year increase, the financial strength score of all UK enterprises fell from 80.76 in April to 79.98 in May

Posted by Thomas Fletcher