Number Scots firms going bust drops by a third

Scottish insolvencies dropped by more than a third during the last quarter, despite a number of high profile cases, according to analysis by KPMG.

KPMG's Blair Nimmo said the latest data offers cause for optimism. Picture: Contributed

The number of companies entering into administration, receivership or liquidation in Scotland decreased by 34.7 per cent in the three months to 30 September, totalling 158 corporate insolvency appointments.

This marks a drop from 244 in the previous quarter, and from 242 in the same period last year, according to the professional services firm.

KPMG said there had been 140 cases involving liquidation, down from 232 in the second quarter; 18 administration and receivership appointments, up from 12 in Q2, and 43 cases of HMRC appointments, more than half the 93 recorded in the previous three-month spell.

The figures include a number of high profile failures, such as Ferguson Marine which was acquired by the Scottish Government after falling into administration this summer.

KPMG head of restructuring Blair Nimmo said: “With ongoing political and economic uncertainty increasing pressure on the UK’s retailers, there have been a number of particularly high profile administrations and liquidations in the last quarter, but our latest data offers up some cause for optimism.

“Companies across all industries are now proactively addressing long-term issues and attempting to place themselves on a more sure financial footing, ahead of any impending challenges that issues including Brexit could create.”