According to research from KPMG, the number of insolvent Scottish companies in the first quarter of 2015 has fallen 21%, compared to the same time last year.
Liquidations in Scotland fell even more by 24% year on year. Compared to the previous three months (Q4 2014), the number of liquidations decreased by 13%.
Official figures from Accountant in Bankruptcy (AiB) show the number of liquidations and receiverships hasn't been this low in seven years (looking at Q4 2014 results). It is the third consecutive year that Scottish insolvencies have been in decline.
Head of restructuring at KPMG Scotland, Blair Nimmo, said in a statement:
“It’s clear as we enter the second quarter of 2015, in general, businesses are in a stronger position. Buoyed by an overarching recovery, economically we’re seeing a positive trading environment for both large and smaller organisations in Scotland, which is reflected by the drop in insolvency appointments.”
“That being said, volatility in oil prices as well as uncertainties around the outcome of the general election may have wider repercussions for the economy as businesses adopt a 'wait and see' approach to growth.”
Supporting Nimmo’s comment, many SMEs could be waiting to see what happens in May before deciding the next step for their business. The government’s Q1 insolvency statistics for England and Wales will be released next week.