Large firms ‘resilient’ as failures fall in Q3

Larger firms in Scotland have shown resilience to economic uncertainty in the third quarter, although smaller businesses have struggled, new research has found.

According to accountancy group KPMG, the number of large businesses failing north of the Border showed a yearon-year drop of 29 per cent between July and September, at 17 down from 24.

The firm also revealed that total administrations in 2018 fell by 38 per cent compared to the first nine months in 2017 to reach 42.

However, liquidations, which affect smaller businesses, have risen by 32 per cent from January to September 2017, affecting 679 companies.

KPMG said Scotland has seen positive signs of growth in the tourism, financial services and building sectors, despite challenges in retail and casual dining.

Blair Nimmo, head of restructuring for KPMG UK, commented: “Business confidence in Scotland is among the highest in the UK, with large businesses in particular demonstrating resilience in the face of stalling Brexit negotiations and wider political uncertainty.

“Nevertheless, liquidations have increased compared to the same period last year.

“This mirrors much of our experience over the past 12 months, where we have worked far more with smaller businesses, trying to assist them avoid failure.

“Looking ahead, there is increased nervousness surrounding Brexit, and there’s still a lot of guessing as to how it will impact the economy, and when.” 0 ‘Business confidence is high’: KPMG’S Blair Nimmo