The number of business insolvencies in February fell year-on-year according to figures from Experian.
The total number of insolvencies was 1,834 compared to 2,160 in February 2009 – a decline of 15.1 per cent.
The financial strength score of UK businesses, which is the likelihood a business will fail in the next 12 months, also improved from 79.96 to 81.18 year-on-year.
The Greater London area emerged as the region where companies had the lowest financial strength score although there has been some improvement in the past year.
Larger companies, with more than 501 employees, saw the biggest improved in the rate of insolvency from 0.20 per cent in February 2009 to 0.10 per cent in 2010.
Insolvencies remained the same for the leisure and hotel sector year on year with the failure of 139 businesses while in the transport sector 65 insolvencies were reported for February 2010 compared to 80 in February 2009.