KPMG have released their Q3 insolvency statistics ahead of the government’s Accountant in Bankruptcy’s quarterly report (due out tomorrow). Figures show the number of insolvent companies in Scotland has fallen by 30% since the same time last year. 177 companies were insolvent between the July and September this year compared to 254 in Q3 2014.
Overall figures were also down on the previous quarter which saw 214 company insolvencies in Scotland. Looking more closely, the number of companies going into administration actually increased by 27%, (from 15 to 19) between July and September while the number of liquidations fell 33% year on year (from 239 to 158).
Blair Nimmo from KPMG’s Scotland division commented “We can see similar six and nine-month comparative trends. To put this in a wider context, there are now fewer businesses failing than before the recession and there is no doubt that, for the most part, business confidence is on the rise.” We will expect to see similar results in tomorrow’s figures from AiB. UK-wide insolvency statistics from Q3 will be released by the government on Thursday.
Update 28th October: Today’s statistics from AiB reveal the number of Scottish companies that entered liquidation or receivership in the second quarter fell by 8.6% since Q1. There were a total of 129 compulsory liquidations and 51 creditors voluntary liquidations, a fall of 13.9% since the same time last year. Note – the corporate insolvencies below only represent liquidations:
Source: http://www.aib.gov.uk/aib-quarterly-insolvency-statistics-publication-quarter-2-2015-16-statistical-report-pdf The overall results from KPMG and AiB reflect the growing confidence and increasing turnaround options for Scottish businesses as insolvencies continue to decline year on year. UK statistics released tomorrow will likely show a similar pattern.