Drop in number of big businesses failing
The number of larger businesses failing in Scotland has fallen by more than half in the last quarter, according to new figures from KPMG.
The firm said that it suggested the decision by many organisations to take a more cautious approach to growth in light of broader political and economic uncertainty was paying off.
Administrations – which typically involve larger companies – fell by 62 per cent, year-on-year, and compared to the previous three months in 2018 decreased by a third.
However, the total number of corporate insolvency appointments, which includes liquidations, increased by 26 per cent compared to the same period in 2017 (246, up from 196), and rose by 6 per cent compared to the first quarter of 2018, (246, up from 233).
Liquidations – affecting smaller businesses – increased marginally by 8 per cent compared to the first three months of 2018, but rose by more than one-third compared to the same time last year.
Blair Nimmo, head
of restructuring for KPMG in the UK, said: “Despite a number of high-profile UK businesses struggling, large organisations in Scotland continue to show resilience in the face of significant challenges.
“However, unfortunately, we have seen a rise in the number of liquidations, which has impacted overall figures. Nevertheless, these still represent relatively normal ‘attrition rates’ and we only have to look back to the third quarter of 2016 to see higher numbers of insolvency appointments.
“Overall, the figures reflect a relatively positive picture.”