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Experian® launches Business Health Index [Copy of Press Release]

Experian®, the global information services company, has released its first Business Health Index for the Republic of Ireland. Using Experian's unique credit scoring model, the Business Health Index provides insight into the business universe of each of the 26 counties in the Republic.

Experian analysed data across a number of variables and determined a credit risk score for every business in Ireland.  The Experian Business Health Index ranks each county against a national average to determine which counties had a healthy business universe. Experian also analysed the number of new businesses established and the number of companies dissolved/ceased during the year to determine whether the business universe was growing or contracting in each county.

Tipperary ranked number one in the Experian Business Health Index with an Index Score of 89 and the lowest number of companies in the high or maximum credit risk category (41.29 per cent). Laois and Monaghan follow with an Experian Business Health Index of 90 and 91 respectively.  41.48 per cent of Laois companies and 42.13 per cent of Monaghan companies were in the high or maximum credit risk category. 

Conversely, Galway was the lowest ranked county on the Experian Health Index with an Index Score of 114 and the highest percentage of companies in the high or maximum credit risk groups (52.47 per cent).

Experian also looked at business growth rates around the country to examine whether the business universe was expanding or contracting in each county. The growth rate is calculated by subtracting dissolved/ceased companies from the sum of new companies established in 2011*. 

Counties in the South East had the strongest growth rates: Kilkenny (2.6 per cent), Carlow (0.9 per cent) and Waterford (0.7 per cent). 

Howard Lewis, Managing Director of Experian Ireland said, "What the Business Health Index tells us is that when looking at the entire business universe in Tipperary, the county has a lower proportion of businesses at risk of failure than any other county".

"What is encouraging is that fifteen of the twenty six counties have a Business Health Index of 100 or under, which means more than half the counties in Ireland are performing better than the national average in terms of the level of risk in their local business populations.

"The four poorest performing counties are all situated in the West / North West namely Galway, Leitrim, Westmeath and Sligo. This shows that companies in this region have higher credit risk. The implications of having high credit risk means you could be extending credit to parties that may be entering financial difficulties. Today's financial market is highly changeable and a business that looks good today could be a risk tomorrow.'

'Monitoring your level of risk across your customer portfolio enables businesses to make the right decisions in terms of managing their exposure.' he added.

The Business Health Index is based on Experian's credit reporting methodology. By using an Experian Credit Report, companies can get a broader, deeper, more integrated picture of their customers. In addition it facilitates forecasting, whereby companies can gain insights into emerging risks and opportunities - long before they actually emerge.
For more information relating to this Experian Initiative please contact info@experian.ie or danielle.span-dominy@experian.ie