The average financial strength score for businesses in the
It was helped by an overall improvement in the time it takes businesses to pay their suppliers.
Business failures peaked in the first half of 2009 but the sharp fall during the second half of the year helped alleviate the final number of insolvencies.
The total number increased by 12% during 2009, compared to 29.3% during 2008, bringing the annual insolvency rate for 2009 to 1.25%.
Property-related business insolvencies have declined 18.6% from December 2008.
Experian reported 144 property insolvencies last month, with the sector’s strength score decreasing from 84.79 in December 2008 to 83.63 in December 2009.
Last month, insolvencies in the leisure and hotel sector fell 4.1% from December 2008 and stood at 140 in December 2009.
Non-food retailing insolvencies declined 37.5% from December 2008, with Experian reporting 100 insolvencies last month.
The food retail sector was one of the strongest sectors, with 11 insolvencies in December 2009 – and a 0% change in insolvencies from December 2008.
The north east saw the highest levels of insolvency throughout the year;
Rolf Hickmann, managing director of pH, an
“Last year, it became clear that the businesses most successful at avoiding insolvency were the very smallest and the very largest ones.
“The highest insolvency rates in 2009 were among mid-range businesses.
“Many more businesses are taking steps to protect themselves from the risks of not getting paid, the impact on them if a key supplier or customer goes bust and indeed the risk of insolvency within their own businesses.
“With this in mind, businesses need to not only proceed with caution when it comes to both new and existing business clients, but also ensure that their own house in order, so that they themselves are appealing prospects for business.”
