Dormant businesses are costing millions

SCOTTISH oil and gas firms are wasting money by keeping dormant subsidiaries listed within their group structures, accountancy firm Deloitte yesterday claimed.

The firm said its analysis of the legal group structures of FTSE 350 companies has shown that more than 50 per cent of subsidiaries are dormant.

These unused entities are estimated to cost the average business £250,000 per year in unnecessary administrative costs and management time. Research across a sample of larger companies found that 31 per cent of a group structure is dormant.