The latest Insolvency Index from Experian has reported a year-on-year improvement in business insolvencies during February.
The total number of insolvencies fell by 12.5% during February compared to the same month last year – from 1,834 in February 2010 to 1,605 in February 2011 – bringing the rate of insolvencies down from 0.10% to 0.08%.
The overall financial strength score of UK businesses continued to improve, from 81.18 in February 2010 to 81.60 in February this year. The score also saw a small month-on-month improvement from 81.49 in January.
Scotland saw the greatest improvement with the lowest insolvency rate at 0.06% in February, while Wales saw the biggest increase to the rate of insolvencies rising to 0.11% from 0.08% in February 2010.
Yorkshire was the worst performing region with a rate of 0.13%, while Greater London continued to be the region where businesses had the lowest financial strength score at 80.51.
Max Firth, managing director of pH, an Experian company, said: “The period of stability for businesses in the UK continues to head in a positive direction overall. However