Credit, Collections & Insolvency News
Latest figures released by Registry Trust show that the number of decrees against Scottish businesses dropped by 28 percent in the first six months of 2019 (compared to HY1 2018 figures) – totalling 1,140, the lowest of any first half-year on record.
The total value of decrees against businesses in the first half of the year rose 27 percent to £9.4million. The average value of a business decree leapt 75 percent to £8,231, while the median, at £2,127, was up by 26 percent compared to the same period the previous year.
Though the total number of decrees against incorporated businesses dropped by 29 percent from the previous year’s figures, to 850, the total value of decrees against companies rose by 69 percent to £8.4million. The average value of a decree in HY1 2019 jumped 138 percent to £9,829 and the median increased by 45 percent to £2,235.
The total number of decrees against the generally smaller unincorporated businesses fell 23 percent on HY1 2018 figures, to 290 – a record first half-year low. The total value also dropped to a record first half-year low of £1million, down 58 percent compared to the same period of 2018. The average value decreased by 46 percent to £3,549, while the median value fell seven percent to £1,951.
Only 4.34 percent of decrees were marked as satisfied during the first half of 2019. This compared to the 13.88 percent of satisfied debt judgments in England and Wales, where satisfaction rates are far higher owing to legal differences.
Scotland chairman Malcolm Hurlston CBE said “Lenders are likely to take notice when a decree is satisfied. It would be helpful if advice agencies in Scotland helped clients to report it to us.”
“The decree stats for both businesses and consumers are positive over this half year and give hope for a strengthening economy.”
Business statistics
| Q1+Q2 2018 | Q1+Q2 2019 | Change (compared with Q1+Q2 2018) | |
| Decrees against all businesses | |||
| volume | 1,573 | 1,140
[record low] |
-28% |
| total value | £7.4m | £9.4m | +27% |
| Average* value | £4,713 | £8,231 | +75% |
| median | £1,687 | £2,127 | +26% |
| Decrees against incorporated businesses | |||
| volume | 1,197 | 850 | -29% |
| total value | £4.9m | £8.4m | +69% |
| Average* value | £4,123 | £9,829 | +138% |
| median | £1,545 | £2,235 | +45% |
| Decrees against unincorporated businesses | |||
| volume | 376 | 290
[record low] |
-23% |
| total value | £2.5m | £1.0m
[record low] |
-58% |
| Average* value | £6,589 | £3,549 | -46% |
| median | £2,109 | £1,951 | -7% |
* 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.
