Decrees against Scottish businesses drop to record low

In the first three months of 2019, the number of decrees against Scottish businesses dropped by 25 percent, compared to the same period of 2018, according to figures released by the Registry Trust. The total of 561 was the lowest of any quarter on record.

The total value of decrees against businesses in the first quarter fell three percent to £3.1million. The average value of a business decree rose 30 percent to £5,599 while the median, at £1,900, was up by 23 percent compared to the same period the previous year.

The total number of decrees against companies dropped by 30 percent from the previous year’s figures, to 398, though the average value of a decree in Q1 2019 jumped 98 percent to £6,663 – a record high for the first quarter. The median increased by 38 percent to £2,067 and the total value of decrees against Scottish companies rose by 39 percent to £2.7million.

The total number of decrees against generally smaller unincorporated businesses fell 11 percent on Q1 2018’s figures, to 163 – also a record first quarter low. The total value also dropped to a record first quarter low of £489,041, down 63 percent compared to the same period of 2018. The average value decreased by 58 percent to £3,000, while the median value fell 15 percent to £1,632.

Only 4.39 percent of decrees were marked as satisfied during the first quarter of 2019, less than half the 10.52 percent of satisfied debt judgments in England and Wales, where satisfaction rates are generally higher owing to legal differences. This suggests advice agencies in Scotland should encourage clients to report when they have satisfied a debt.

Trust chairman Malcolm Hurlston CBE said: “These figures show a Scottish economy in robust health despite headwinds. The absence of judgments makes it easier to borrow responsibly – an important element to a strong economy.”

A decree is an incontrovertible proof that debt has not been managed.

Business statistics

	Q1 2018	Q1 2019	Change (compared with Q1 2018)
Decrees against all businesses
volume	750	561 [record low]	-25%
total value	£3.2m	£3.1m	-3%
Average* value	£4,301	£5,599	+30%
median	£1,548	£1,900	+23%
Decrees against incorporated businesses
volume	566	398	-30%
total value	£1.9m	£2.7m	+39%
Average* value	£3,370	£6,663 [record high]	+98%
median	£1,500	£2,067	+38%
Decrees against unincorporated businesses
volume	184	163 [record low]	-11%
total value	£1.3m	£489,041 [record low]	-63%
Average* value	£7,167	£3,000	-58%
median	£1,925	£1,632	-15%

* Average value refers to the ‘mean’. The mean average tends to be higher than the median, as it is more likely to be distorted by outlying, high-value cases.