Fall in Scottish corporate insolvencies.
24th October 2017.
The number of businesses going bust in Scotland fell by almost a quarter in the last year.
New statistics from KPMG show, for the three months to 30th September, the total number of insolvency appointments decreased by 23%.
The report says the decline was down to the “steadying of the ship” in the oil and gas industry. However they warned about the effects the weakening exchange rate may have on businesses.
Blair Nimmo, head of restructuring for KPMG in the UK, said: “Scotland’s corporate insolvencies continue to show encouraging signs when compared to the same period last year, with a marked fall in failing businesses both during and in the last 12 months. 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.
“Following a challenging time for the oil and gas sector, it appears the ship has been steadied. The adoption of new business models and significant cost-cutting measures have left the energy industry in a more comfortable position, and as a result, we have seen fewer insolvencies in that sector.”
Mr Nimmo said that elsewhere it was difficult to detect an obvious sector weakness with most companies understandably adopting a cautious approach to business, given the broader political and economic climate.
“In all three quarters of this year, insolvency figures have improved compared with 2016. What will be key to the success of many Scottish firms, however, is how they cope with the coming 12 months and beyond.”
In the 12 months to September 2017 there were 802 insolvency appointments, a fall from the 1040 in the year up to September 2016.
There was also a 24% decrease in liquidation appointments (710 down from 931), and a 16% fall in administration appointments (92 down from 109) in that period.
The statistics from KPMG also showed the number of businesses failing in Scotland also fell in the third quarter of 2017, compared to the same three months in 2016.
The decrease marks the third consecutive quarterly fall in insolvencies compared to the same period last year. In the three months to 30th September 2017, the total number of insolvency appointments decreased by 23% (217 down from 282) compared to the same period in 2016.
There was a 24% decrease in liquidation appointments (193 down from 255), which tend to affect smaller businesses, and an 11% decrease in administration appointments (24 down from 27), which usually involve large businesses.
The Credit Protection Association is pleased to see the fall, however with rising inflation, Brexit on the horizon and a possible rise in interest rates, now is not the time to be complacent regarding the threat of future insolvencies.
The Credit Protection Association is a credit management company established in 1914. If you supply goods or services on credit then we can help you!
Keep up to date with the latest news by following us on social media:-
What can CPA do for you?
Read our blog – The Hidden cost of slower payers.
Read Our Blog – How to overcome common excuses for non-payment
Read our blog – Debt collection agency
Read our Cash Flow Advice
Read about our overdue account recovery service
Read our blog – What is credit management?
Read our blog -What is a credit management company?
Read our blog -Credit Management that works!
Read our blog – How to select a debt collection agency
click to see read about our successes
Please call us on 0330 053 9263 to discuss how CPA can help your cashflow. Alternatively, either email us or use our contact form.