Corporate insolvencies decelerate in Q3

The number of businesses in Scotlandfailingexperienceda year-on-year drop in the third quarter, accountancy giant KPMG has revealed, although it warned that the next year and beyond will be crucial.

The firm said there were 217 corporate insolvency appointments between July and September, down from 282 in the third quarter of 2016.

The drop represented the third consecutive quarter of improvement in insolvencies compared to the same respective months last year, although the latest figure was up from 177 in the third quarter of 2015.

The most recent figure comprised 193 liquidation appointments, which tend to affect smaller firms, and 24 administrations, which usually involve larger businesses.

Blair Nimmo, head of restructuring for KPMG in the UK, said Scotland’s corporate insolvencies “continue to show encouraging signs”.

He added: “The data reflects what we are seeing on the ground, with decreases in the number of liquidation, administration and receivership appointments across most if not all sectors, compared with last year.”

Nimmo flagged progress in oil and gas where “the ship has been steadied… Elsewhere, it is difficult to detect any obvious sector weaknesses, with most companies understandably adopting a cautious approach to business, given the broader political and economic climate.”

Brexit has not yet made a notable impact, he continued. “What will be key to the success of many Scottish firms is how they cope with the coming 12 months and beyond.” 0 Blair Nimmo of KMPG flags ‘encouraging signs’