UK companies' net rate of return dips
Commercial insurance
20th July 2010
The net rate of return among companies in the UK fell during the first three months of this year to 11.1 per cent, new figures have revealed.
Data from the Office for National Statistics (ONS) showed that the quarter saw a decline from 11.3 per cent from the end of 2009.
During last year, the net rate of return for non-financial enterprises stood at 11.6 per cent, compared with 14.3 per cent for 2008.
Figures varied widely between sectors, with manufacturing businesses seeing their returns stand at 6.4 per cent and the services industry witnessing a rate of 14.4 per cent.
Meanwhile, the number for United Kingdom Continental Shelf companies stood at 36.4 per cent for the period in question.
Highlighting the importance of a good UK insurance policy, the ONS report comes after a study by trade organisation R3 found that 56 per cent of corporate insolvencies are the result of bad management.
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