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Sharp decline in failing companies in Scotland

Category: Scotland Business News — Mark on October 22, 2013

New figures have shown a notable drop in the number of Scottish firms claiming insolvency, marking the third quarter in a row that there has been such a fall.

The data from KPMG shows that in the third quarter of 2013, 230 firms went into administration, representing a 27 per cent drop from the same period in 2012. It also comes on the back of a 45 per cent fall in the previous quarter, and a 46 per cent decline in the first quarter of the year.

Overall for the year, there has been a 33 per cent drop in the number of insolvencies. To the end of September 2012, 1,262 firms in Scotland had fallen. To the end of September 2013, this figure was at 837.

According to the professional services firm, it is the first year-on-year reduction since 2008.

With a high number of smaller companies reworking their strategies with the help of invoice finance options such as factoring and discounting, liquidations also fell by 30 per cent through the year.

The head of restructuring at KPMG, Blair Nimmo, said:

“These figures show a positive slowing in the number of business failures, which is good news for the Scottish economy.

“Year-on-year the number of insolvencies, for both larger and smaller businesses, continues to fall.”

Nimmo did go on to say that some companies were still facing issues accessing finance, though factoring brokers in Scotland are playing their part in finding suitable and proactive solutions.

'Disclaimer: The information contained in these articles is of a general nature and no assurance of accuracy can be given. It is not a substitute for specific professional advice in your own circumstances. No action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a consequence of the material can be accepted by the authors or the firm.

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