KPMG stats show 10% increase in Scottish company insolvencies

22 April 2016

According to the latest KPMG insolvency figures, the number of companies entering administration or liquidation rose by 10% in the first three months of the year.
There were a total of 206 corporate insolvencies compared to 188 recorded in the same quarter last year. Liquidations increased 9% (from 168 to 184) while administrations rose 10% (from 20 to 22).

Compared with the previous quarter (end of 2015), company insolvencies actually dropped from 275 to 206, showing the situation is still looking positive. However due to various reasons, we are seeing insolvencies gradually rise this year.

Blair Nimmo from KPMG said “The number of failing businesses now is still significantly lower than at the height of the recession, but we are beginning to see figures creep back up.”

“The oil and gas downturn, coupled with an impending EU referendum and Scottish elections, have created a period of uncertainty, which inevitably results in unfavourable trading conditions.”

UK

KPMG's figures on the UK showed an overall fall of 15% in company administrations since the same time last year - 277 down from 327. This has generally  been expected in the industry as insolvencies continue to decline as the economy strengthens. 

Scotland’s Insolvency Service will publish official statistics on AiB on Wednesday while UK statistics will be published by the government next Friday.