Risk
The Insolvency League Top 50
above the long term trend, in line with the recent GDP data and fuelling fears of a triple dip recession. Our Insolvency Top 50 league table for 2012 shows the Darlington area rising 80 places to claim the top spot although this is heavily skewed by the failure of Southern Cross Healthcare, whose many businesses were registered in the area. Stripping this out, we can see that once again, Manchester, Leeds, and Sheffield occupy the top 3 places. There appears to be some contagion in the North West, as we see Wigan and Preston rising up the table. Preston in particular is notable for a 44% increase in its insolvency rate to 1.11%, taking it from 37th place in 2011 to 13th place in 2012. There is some comfort for the North East of England however, where Sunderland and Teesside saw rates fall during 2012, although these were fairly small. Teesside’s 2012 ranking remains above its 3 year average, although Sunderland has fallen slightly. Bright spots in the North were the Hull and Huddersfield areas, showing a 43% and 40% fall in their respective insolvency rates. Northern Ireland is creeping ever closer to matching the insolvency rate in the Republic of Ireland, at 1.15%, a 13% rise on 2011. Both areas are feeling the devastating effect of the decline in the Construction industry. High profile failures such as Ballymena based Patton Group
T 4
he 2012 UK insolvency rate barely changed at 0.64% against 0.67% in 2011 and unfortunately remains well
hit the headlines in 2012, however, the underlying tale is one of smaller subcontractors and suppliers to the industry falling into insolvency as the flow of work dries up. Outside of Construction in the Republic of Ireland, Retail and Leisure are driving the insolvency rate of 1.27%, underlining the poorer than anticipated retail sales performance over the Christmas period. The historically stronger Food Production sector is also starting to show signs of weakness with 2012 seeing the failures of Co-operative Poultry and Olhausens. One feature that has always been consistent in the insolvency rates is the North / South divide and 2012 was no different with no area in the South making it into the top 10. After a fall in 2011, Southampton rose up the league table again to 12th position although this was an anomaly compared to other areas in the South, which showed falls. Conditions in London appear to have eased slightly although in 2012 sectors outside the Construction industry are pushing the insolvency rates into the top 20; Printing and Engineering being two such examples. Again reflecting previous years, the South West of England and East Anglia are the two ‘safest’ places to do business in the United Kingdom. The Leisure sector in these areas has remained relatively unscathed despite problems in the wider economy and failures in Food & Agriculture are running well below the national averages.
"Insolvency rates have fallen in Scotland for the first time in 4 years with figures showing a 14% reduction on 2011." Neil Redhead
Regional Risk Manager North of England & Scotland
Insolvency Rate >1.25%
1.00% - 1.25% 0.75% - 0.99% 0.50% - 0.74% <0.50%
Northern Ireland
Nort East
North West
Scotland
Ireland
West Midlan
Wales
South West
"We expect Irish insolvency numbers to follow a similar trend in 2013 with falls in Construction offset by increases in Retail and Service sectors". Mike Buggy
Risk Underwriting Manager Republic of Ireland
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