Business insolvency rate falls for North East

New figures from Experian, a global information services company, have revealed that the rate of business insolvencies steadied in March 2012 with 0.11% of the UK’s business population failing, the same level as recorded in March 2011.

The North East of England, a region that has traditionally been one of the hardest hit for insolvencies, recorded a significant improvement in failure rates, declining from 0.22% of its business population in March 2011 to 0.14% in March 2012. This was the biggest year-on-year improvement of any region.

The health of the business community in the North East – measured using an average of Experian financial strength scores attributed to local businesses – rose from 81.71 in March 2011 to 84.50 in March 2012.  Only businesses in the East Midlands recorded a bigger average improvement in financial strength, from 81.82 in March 2011 to 84.89. 

Max Firth, UK MD for Experian’s business information services division, said: “March was a positive month for businesses in the North East and an improving financial strength score is encouraging. It highlights that even in regions which have experienced some of the highest rates of insolvencies over the past year, there will be potential pockets of opportunities for organisations to extend credit and increase business.

“However, the North East does still have the second highest insolvency rate in the UK, so it is vital that businesses fully understand the financial risks associated with firms they deal with. This message is pertinent across the UK, regardless of region or sector. Where there are risks there are also opportunities.”

Did you find this article useful?

Posted by Billy Taylor (100)

Written on 4th May 2012

Find other articles written by this user

Comments

0

Add Comment

Please Register

Please register to use the full range of our site's features: renew your subscription, post a blog, comment against news articles, view Dealer Support magazine online

Latest Added

ECS expands its recycling with new…

New site allows more consumables to be recycled or remanufactured

Written By Austin Clark 29th July 2015

Integra announces 2015 Conference…

Opportunity knocks at dealer group’s annual event

Written By Austin Clark 28th July 2015

SPOT receives another financial boost

Spicers-OfficeTeam Group strengthens its balance sheet as loans capitalised into…

Written By Austin Clark 28th July 2015

Most Viewed

Making lighting work

Sean Starkey, MD of Durable UK, talks about the importance of lighting in the workplace…

Written By Austin Clark 21st July 2015

The simplest way to motivate your…

There is one action that stands out from the rest when it comes to motivating staff…

Written By Austin Clark 17th July 2015

Do you have the Business Skills needed…

How have business skills changed in the 21st Century?

Written By Austin Clark 6th July 2015