West Mids' insolvency rate improves
The number of insolvent businesses in the West Midlands dropped to 136 in July this year, compared to 228 in the same month in 2009. The failing business population now stands at 0.09 per cent, compared with 0.15 per cent the year earlier.
The West Midlands received a financial strength score of 79.9, an increase on its July 2009 score of 79.7. This is slightly below the UK average of 80.9, according to the latest insolvency index from information company Experian.
Across the UK, there was a 33 per cent drop in the number of insolvencies. Last July, 2,312 insolvencies were recorded across the country, compared with 1,542 businesses which recorded failures in the same month this year.
The Yorkshire region experienced the highest rate of insolvencies at 0.13 per cent, and greater London remained the region where businesses had the lowest financial strength score, at 79.75.
Max Firth, managing principal of pH - an Experian company, said: “July’s data indicates that the SME population is faring much better in terms of insolvencies than it did this time last year. However, increasing failures at the top end of the market demonstrates clearly that there is a still a great deal of uncertainty.
“Given this ever changing picture, it is vital that organisations ensure they understand and proactively manage the risk that those they do business with exposes them to.”
