Fewer firms failed in region over last 12 months

In the region, 0.1 per cent of businesses – or 128 firms – failed in February, compared to 0.12 per cent – or 141 firms – in the same period of 2012, the latest business insolvency index from Experian showed. Across the UK, insolvency rates among businesses with 101 to 500 employees fell for the third consecutive month – from a peak of 0.19 per cent in November of 2012 to 0.09 per cent in February 2013.

These firms also saw the biggest fall in the rate of insolvencies when compared to the 0.17 per cent of firms with 101 to 500 employees that failed during February 2012. Max Firth, MD, Experian Business Information Services, UK&I, said: “The falling insolvency rate among UK’s larger firms will impact positively on the wider supply chain, often smaller businesses.”

Businesses with more than 501 employees also showed improvements, with insolvency rates falling for the last two months from a peak of 0.24 per cent in December 2012 to 0.11 per cent in February 2013. The insolvency rate is now back to the level it was at in February last year.

Across the UK, 0.08 per cent of the business population – or 1,646 companies – failed during February, representing an improvement on February 2012 when the insolvency rate stood at 0.10 per cent.

The only businesses that showed an increase in their insolvency rate compared to February 2012 were those with between 51-100 employees.

They saw their rate rise from 0.12 per cent last year to 0.16 per cent in February.

Regionally, the most significant falls in the rate of insolvencies came from firms in Scotland, down to 0.03 per cent, and the North East, down to 0.1 per cent.