New figures from professional services firm, KPMG shows the number of businesses failing in Scotland fell to an eight-year low in 2017.
KPMG’s latest insolvency statistics reveals the number of corporate insolvencies at the end of 2017 stood at 832, a figure not seen since 2008. An annual comparison with 2016 shows a 15% fall in the number of insolvencies (832 down from 984).
Administrations, which typically affect larger organisations, fell by 14% in the past 12 months (83 down from 97). A quarterly comparison shows from October – December 2017, the number of administrations fell by 38% compared to the same period in 2016 (15 down from 24).
Liquidations fell by 16% in 2017 (749 down from 887). A quarterly comparison reveals from October – December 2017, the number of liquidations increased by 25% compared to the same three months in 2016 (236 up from 189).
Blair Nimmo, global head of restructuring at KPMG, said: “Although we saw a small rise in insolvencies in the quarter ended 2017 compared to the same period in 2016, this does not necessarily signal a fall in the fortunes of Scottish businesses. The figures must be viewed in the context of decreases over a six and 12-month comparison, by 7% and 15% respectively. Indeed, annually, it is encouraging to see the number of business failures falling to an eight-year low, representing what are relatively normal attrition rates.”