IT firms holding up as enterprise insolvency rates rise

The number of IT firms falling into insolvency has remained stable at the start of this year compared with how things ended in 2011. The latest monthly figures from Experian show that 35 IT firms hit the wall last month, a 0.04% increase on the same period a year ago and 0.03% up on December. The ov

The number of IT firms falling into insolvency has remained stable at the start of this year compared with how things ended in 2011.

The latest monthly figures from Experian show that 35 IT firms hit the wall last month, a 0.04% increase on the same period a year ago and 0.03% up on December.

The overall business health across UK plc saw 0.07% of firms run into trouble, the same level as this time last year, small firms remained fairly steady but the number of insolvencies in firms with 501 plus staff reached 20% last month.

"January generally tends to be a good month, with many businesses benefiting from the Christmas trade. When coupled with steady improvements in the underlying financial strength of businesses, it means that we can entertain some cautious optimism in the months ahead," said Max Firth, UK managing director at Experian's business information services division.

"The latest data have, however, revealed an increase in the rate of insolvencies for the largest firms.

"This highlights that despite a positive start to 2012, businesses of all sizes still need to understand the risks they are exposed to and have strategies in place to protect themselves," he added.

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