The number of UK firms becoming insolvent fell by 12% in February on the same period last year, according to data from information services firm Experian.

The research shows the total number of insolvencies fell from 1,834 in February 2010 to 1,605 in February 2011 – bringing the insolvency rate down from 0.10% to 0.08%.

Max Firth, managing director of pH, an Experian company, says: “The period of stability for businesses in the UK continues to head in a positive direction overall. “However, while smaller and larger companies are improving, insolvency rates for the midsized companies (20-100 employees) continue at the same rate month on month. This could mean that in more challenging times they fall victim to being too large to be flexible and too small to rely on a solid, established business structure and long-term contracts.”