A recent report into the insolvency rates of businesses throughout the UK has shown that the financial health of all businesses is heading in the right direction.

The report, whose findings were out earlier this week have revealed that compared to last year, the number of businesses to become insolvent has decreased from over 1,800 last year to just over 1,500 last month.

Along with showing a decrease in the number of firms becoming insolvent, the report revealed that all areas of the UK saw their average financial health score improve from an average of 83.24 in April 2011 to 83.76 last month.

The latest figures make for particularly positive reading for medium sized firms, which have traditionally struggled, as it was shown that these were the most improved during April.

Businesses with fifty-one to one-hundred employees saw the biggest improvement from 0.22 percent April 2011 to 0.10 percent in April 2012.

A spokesperson for the report said of the findings: “The figures show a more stable business environment, with some areas and sectors that have historically seen the highest rates of business failures moving in the right direction.

“Since January 2009, when the average financial strength score of UK firms had fallen to its lowest level recorded, there has been a definite and positive upward trend.

“Combined, these two valuable indicators show how UK businesses are faring and highlight areas where there are opportunities, as well as risks.”