There has been a year-on-year decline in business insolvencies during June, according to the latest Insolvency Index from Experian. The overall financial strength score of UK businesses also improved, from 80.83 in June 2009 to 80.66 in June this year.
1,771 UK businesses failed during June 2010, 13.4% fewer than in June 2009 when 2,044 firms became insolvent. As a result, the year-on-year insolvency rate fell from 0.10% to 0.09% in June.
At 0.14%, the North East had the highest insolvency rate of the regions in June, with Yorkshire (0.12%) close behind. Businesses in the South West saw a UK low of 0.07%, while Greater London had an insolvency rate of 0.08%
Although these figures are encouraging its vital that businesses remain on their guard as we are not out of the woods yet.