The number of Scottish business facing liquation has declined by 23% over the three months leading up to September, according to new research from KPMG.
In the year leading up to September 2017, there were 802 insolvency appointments, a drop from 1040 in the previous year. Between June 2016 and June 2017, there was also a 7% drop in the number of insolvency appointments.
Commenting on the figures Blair Nimmo Head of Restructuring at KPMG said “Scotland’s corporate insolvencies continue to show encouraging signs when compared to the same period last year. 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. The impact of Brexit remains on the horizon, with no obvious influence yet being felt.”
“The impact of Brexit remains on the horizon, with no obvious influence yet being felt. Looking ahead however, uncertainty in a broader sense may leave a negative impression on consumer and corporate confidence. The weak exchange rate may take its toll on certain sectors, and inflation is at its highest level in five years. 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.”