The number of companies going under is continuing to fall.

Last month, 1,454 company failures were recorded, compared with 1,562 in May last year - a drop of 6.9 per cent.

This brings the total number of companies who failed so far in 2003 to 7,367 - a fall of 4.7 per cent compared with the first five months of last year.

But credit specialists Experian, which compiled the report, said the actual rate of company failures as a percentage of actively trading UK companies remained unchanged at 1.1 per cent.

This was because fewer new companies were set up, which offset the number of companies going out of business.

The report also said voluntary liquidations fell by 5.3 per cent in the five months to May when compared with last year.

Compulsory liquidations dropped 1.5 per cent and receiverships fell by 23 per cent.

Friday June 20, 2003