Leisure and hotel business insolvencies rose for the year between May 2009 and May 2010 according to the latest Insolvency Index from Experian.
The report shows 123 leisure and hotel businesses failing in May this year compared to 121 a year ago.
Leisure and hotels improved slightly with its financial strength score rising from 78.85 to 77.15 year-on-year. The financial strength score predicts the likelihood of a business to fail in the next 12 months, with 100 being the least likely.
The transport sector saw some improvement with the number of insolvencies falling from 67 in May 2009 to 53 for the same month this year. The sector’s financial strength score also improved from 76.21 to 78.13.
Generally, the rate of business insolvencies fell to its lowest point since January 2010, according to Experian.
The report also showed an 18% fall in the total number of business insolvencies during May compared to April.
Medium sized businesses of between 51 and 100 employees appear to have fared best with a decline in the rate of insolvencies from 0.24 percent in April to 0.13 percent in May.
The average financial strength score UK businesses was up year-on-year, from 79.98 during May 2009 to 80.70 in May 2010.
However, the figure was down slightly on April’s figure of 80.76, the third consecutive decline this year.