The number of businesses failing is going up – and security firms are in the thick of it.
The number of businesses failing is going up – and security firms are in the thick of it. According to Experian, in the third quarter of 2002 failures went up 16 per cent compared with the third quarter of last year. Though the information company does not log security separately, the sector that security is a part of – business services – saw theÿthe highest number of failures in the quarter – 910, an increase of 110 (13.8 per cent) on 2001.ÿSome 2,741 companies in the Business Services sector have failed in the year so far, an increase of 348 (14.5 per cent) on the first nine months of 2001. The South East, including London and the City, recorded more than 42 per cent of all failures in the UK during the quarter.ÿThe next highest toll came in the North West. Phil Cotter, Director of Experian?s Nottingham-based Business Information division, said: ?Corporate failures have been running at the rate of 355 a week throughout the year and continue to affect every part of the economy.ÿ It is vitally important, therefore, that those in business remain vigilant and carry out regular checks on the financial viability of their customers.?
Company losses
A total of 4,754 companies failed during the third quarter of 2002, an increase of 655 on the same period in 2001.ÿ 14,198 companies failed during the first nine months of the year, an increase of 1,481 on 2001.ÿ The most significant increase in the first nine months was a leap of 1,082 companies (30 per cent) in compulsory liquidations, which made up a third of all company failures.ÿ Voluntary liquidations, which make up just over half company failures were up 545 (7.8 per cent) in the first nine months.ÿ All types of company failure were greater in Q3 2002 than in Q3 2001, compulsory liquidations by 53.4 per cent to 1,594.ÿ
