Information services company Experian’s Insolvency Index has shown that large UK businesses are financially stronger and less likely to fall into insolvency compared to last year.

In September, 11 companies with over 500 employees entered into insolvency, 27% fewer than in the same month last year. These companies scored a ‘financial strength score’ of 85.87 in the most recent survey, compared to 84.63 the previous year.

However, the rate of insolvencies across British business as a whole rose, up to 0.09% from 0.08% the previous year, with financial strength decreasing for the seventh consecutive month, down to 78.80 compared to 81.05 the same time last year.

Micro businesses - those employing just one or two people - saw 258 insolvencies in September, a rise of 26% compared to last year.

Scotland remained the region with the lowest insolvency rate overall - 0.07%, while the North East was the region with the highest rate at 0.13%, although its drop from September 2010’s 0.15% was also the most significant reducation across the regions. The most significant regional increase in insolvencies came in the West Midlands, rising from 0.08% for September last year to 0.11%.

Oil companies proved to be the strongest, with a financial strength score of 84.21 while food retailers were the worst performing with a score of 73.76.

Two sectors - spirits, wine and tobacco and pharmaceuticals - saw no insolvencies at all last month.
 
Managing director of Experian Business Information Services UK & Ireland Max Firth said: “While larger businesses bucked the trend in September, our analysis underlines how important it is that companies understand the financial strength of their customers, suppliers and business partners. This kind of accessible and valuable insight can make all the difference to a business of any size”.