Scots companies have UK’S lowest risk profile

Scottish firms are generally more financially stable than those in the rest of the UK, although risk levels have risen, a new report suggests.

Scotland has the lowest proportion of businesses at greater-than-average risk of insolvency of anywhere in the UK, but the percentage of companies at elevated risk has increased sharply over the last six months, according to insolvency and restructuring trade body R3.

In the latest figures, Scotland has the lowest overall rate of firms at higher-than-normal risk of insolvency, at about one in three (32.5 per cent), against a UK proportion of two in five (39.1 per cent).

Tim Cooper, chair of R3 in Scotland, said: “While it is good news for the Scottish economy that our businesses have the lowest risk profile of anywhere in the UK, it’s still concerning to see the proportion of firms at greater than usual risk rise from under a quarter to one in three in just six months.”