Ludo Thierry

Good economic news on business insolvency front. It refers to a single quarter’s figures so doesn’t tell us too much. However, the guy from KPMG explains he interprets the figures as demonstrating some resilience operating within the Scottish economy. Lord knows we’ll need it if Johnson and Co. aren’t thwarted pretty sharpish and manage to drag Scotland further into their brexit mire. Link (Scottish Legal site) and snippets below:

https://www.scottishlegal.com/article/number-of-scottish-business-insolvencies-falls-by-over-a-third

The number of Scottish companies entering into administration, receivership or liquidation has decreased by almost 35 per cent in the last quarter, according to new analysis by KPMG.

There were a total of 158 corporate insolvency appointments in the three months to 30 September 2019 – down from 244 in the previous quarter and from 242 in the same period last year.

A total of 140 cases involved liquidation, as compared to 232 in quarter two. There were 18 administration and receivership appointments, up from 12 in the previous quarter while 43 cases were HMRC appointments, down from 93 in Q2.

Blair Nimmo, head of restructuring for KPMG, said: “With ongoing political and economic uncertainty increasing pressure on the UK’s retailers, there have been a number of particularly high profile administrations and liquidations in the last quarter, but our latest insolvency data offers up some cause for optimism.

“The latest quarterly data confirms a relatively minor rise in administrations, with liquidations and HMRC cases both down. The data appears to reflect a growing sense of resilience from the business community.”

Ed: I’d been hoping for English business insolvencies to feel a bit of schadenfreude over but I can’t see any. I note, however for the quarter April-June 2019:

LONDON (Reuters) – The number of insolvent companies in England and Wales hit its highest in more than five years in the second quarter of 2019, according to data on Tuesday that showed businesses under rising financial pressure as Brexit nears.FILE PHOTO: A boy cycles past a closed down retail unit for rent in Stockport, near Manchester, Britain June 11, 2018. REUTERS/Phil NobleThe Insolvency Service, a government agency, said 4,321 companies entered insolvency in the April-June period on an underlying basis, excluding bulk closures of personal service companies. This was up from 4,213 in the first quarter and marked the largest total since early 2014.

https://uk.reuters.com/article/us-britain-economy-bankruptcy/uk-company-insolvencies-hit-five-year-high-in-second-quarter-idUKKCN1UP1AN

So, in Q2, 4 321 insolvencies in England and Wales compared to 232 in Scotland? E&W has 12 times the population and thus, all things being equal, might have 12 times as many insolvencies – 2 784. Insolvency much more common in England and Wales.