The Courier & Advertiser (Fife Edition)
Rise in number of Scottish liquidations
The number of Scottish companies going to the wall increased over the last year.
Figures from KPMG show there were 246 corporate insolvency appointments in the 12 months to June 30, up from 196 in 2017 and similar to the level between 2014 and 2016.
However, the granular data shows a mixed picture, with significantly fewer larger companies going bust – down from 26 in 2017 to 10 – while liquidation appointments for smaller companies jumped from 170 to 236.
Blair Nimmo, head of restructuring for KPMG in the UK, said a rise in liquidations was unfortunate, but he described the overall business attrition rates as “relatively normal”.
He said: “Despite a number of high-profile UK businesses struggling, large organisations in Scotland continue to show resilience in the face of significant challenges. 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.”
Mr Nimmo said pressures on the construction sector continued to impact businesses large and small, noting the recent administrations of Aberdeenshire-based Deveron Homes and Deveron Construction.
He added: “In the UK as a whole, the casual dining and retail sectors continue to face the consequences of changing consumer attitudes to spending, coupled with increased costs as a result of the living wage and business rates pressures.
“While many national chains survived through successful CVAs or administrations, inevitably there have been closures and job losses.
“Scotland has not been immune to the impact of this.
“Overall, the figures reflect a relatively positive picture for Scottish businesses.
“Adopting a long-term cautious approach appears to be paying off for the majority of firms, although sectoral-specific challenges and global economic changes will inevitably force some businesses to reconsider their operations and potentially restructure their organisations.”