Mixed figures on corporate insolvencies
1 Mar 10
The latest figures from the Insolvency Service show that Scottish corporate insolvencies for the last quarter of 2009 were up 20 per cent on the last quarter, in contrast to a slight fall (1.7 per cent) in England and Wales
Despite the rise from quarter three to quarter four, even in Scotland the figures for the fourth quarter show a 5.5 per cent fall in insolvencies compared with the same period in the previous year. The equivalent year-on-year fall for England and Wales was 1.1 per cent.
Personal insolvencies in Scotland were down in the final quarter of 2009 compared with the previous quarter (down 1.5 per cent) and the same period the year before (down 2.7 per cent).
In contrast, England and Wales saw a 25 per cent rise in the number of people entering bankruptcy or an Individual Voluntary Arrangement or Debt Relief Order in England and Wales in the last quarter of 2009, compared with the same quarter in 2008.
Blair Nimmo, head of restructuring for KPMG in Scotland, said: “While the number of insolvencies has increased since the previous quarter, it is interesting to note that they have fallen when compared with this time last year.
“This supports what we are seeing when working with clients and conflicts with the perception that insolvencies are at record levels given the recessionary environment.
“In fact, insolvencies are at relatively low levels due to a variety of factors, including many businesses having taken early corrective action to manage cash and costs, and banks being more supportive than commonly perceived with lending.
“I believe 2010 will remain difficult with the uncertainty created by a general election, and it is possible that in common with previous recessions we will see more insolvencies as the economy recovers.”