NEWS19 October 2009

Business services sector tops September insolvency list

Financials UK

UK— The business services sector has again topped the list for the number of insolvencies seen in September, according to Experian’s monthly insolvency index.

There were 373 closures during the period in the sector, which includes market research and polling agencies, ad agencies, data services companies and software suppliers.

The figure was down 6% on September 2008’s numbers, and down from 404 companies in August 2009 – the first time that Experian published monthly numbers.

The building and construction sector saw the second highest number of business failures with 281, followed by the leisure and hotels sector which saw 107 business failures.

However, the average business insolvency rate across all sectors was the lowest since September 2008.

Rolf Hickman, managing director of Experian-owned marketing analytics firm pH, said: “A flat insolvency rate in September coupled with a small improvement in the overall financial solidarity of the business population is positive. August can be a slow month for insolvencies, which may have explained the low insolvency rate, but the fact that the low rate has continued into September is a good sign.”