Scottish insolvencies jump 10% amid uncertainty

KPMG's Blair Nimmo said insolvency numbers were starting to 'creep back upwards'. Picture: Contributed
KPMG's Blair Nimmo said insolvency numbers were starting to 'creep back upwards'. Picture: Contributed
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Business insolvencies in Scotland climbed 10 per cent in the first quarter of this year, according to figures issued by accountancy and professional services group KPMG.

The number of insolvency appointments rose to 206, up from 188 in the first three months of 2015. The increase was mirrored in both liquidation appointments, which tend to affect smaller businesses, and administrations that usually involve larger organisations.

KPMG head of restructuring Blair Nimmo said the slump in the oil price, coupled with the impending EU referendum and Scottish Parliament elections, had contributed to “a period of uncertainty, which inevitably results in unfavourable trading conditions”.

READ MORE: Corporate insolvencies down despite late surge in 2015

However, Nimmo said the latest figures needed to be kept in perspective, adding that “the number of failing businesses now is still significantly lower than at the height of the recession, but we are beginning to see figures creep back upwards”.