Fewer large Scottish firms going under, new figures show
FURTHER signs of an improving business environment in Scotland came yesterday with figures showing a steep fall in the number of companies going into administration or receivership.
The number of administrations and receiverships, which typically affect larger businesses, have decreased by more than half in the third quarter of 2014 compared to the same period in 2013 according KPMG.
Overall corporate insolvency statistics show a small increase of 4.5 per cent in the number of business failures in the third quarter after a 13 per cent rise in liquidation appointments, which tend to affect smaller companies.
KPMG’s latest insolvency figures follow the recent publication of statistics from the Office for National Statistics showing the Scottish economy expanded
to
figures
from by 0.9 per cent quarter of 2014.
Blair Nimmo, head of restructuring for KPMG in Scotland, said: “Large businesses are clearly in much better shape than they’ve been in some time and we’re finding that many are looking to transactional activity for the first time for several years, signifying a renewed confidence in the market.”
But Nimmo warned the figures also suggest that smaller businesses have yet to fully
in
the
second emerge from the recession.
“As a result, we are busy assisting such companies in dealing with cost reduction, cash management and balance sheet restructuring to help combat remaining legacy issues,” he added.
“In terms of the lending market, however, we have noticed an increase in confidence among businesses – both large and small – with more companies looking to the banks and other funders to secure investment for growth opportunities.”