The latest Insolvency Index from Experian has reported a year-on-year improvement in business bankruptcy during February.
The total number of insolvencies fell by 12.5% during February compared to the same month last year – from 1,834 in February 2010 to 1,605 in February 2011 – bringing the rate of insolvencies down from 0.10% to 0.08%.
The overall financial strength score of UK businesses continued to improve, from 81.18 in February 2010 to 81.60 in February this year. The score also saw a small month-on-month improvement from 81.49 in January.
Scotland saw the greatest improvement with the lowest insolvency rate at 0.06% in February, while Wales saw the biggest increase to the rate of insolvencies rising to 0.11% from 0.08% in February 2010.
Yorkshire was the worst performing region with a rate of 0.13%, while Greater London continued to be the region where businesses had the lowest financial strength score at 80.51.
These Figures Conflict With Retailers Under Pressure Form Insolvency
However, last month saw a disturbing jump in the number of retail companies at high risk of going under, according to a report by RSM Tenon. The number of companies deemed to be at high risk of insolvency jumped by 4% in March compared to the month before, and jumped 2% compared to this time last year. The increase was the second in two months, reversing the positive trend that lasted nearly a year, bringing worrying news for the UK retail sector.
The news follows the announcement by the British Retail Consortium which reported its worst fall in sales since records began in 1996 with a drop of 1.9% in March compared to the same period last year.