Scottish insolvencies ease during April

In April 2024 there were 109 company insolvencies registered in Scotland, 4% lower than the same month last year.

This was comprised of 48 compulsory liquidations, 59 creditors’ voluntary liquidations (CVLs) and two administrations. There were no CVAs or receivership appointments.

Historically, compulsory liquidations were the most common type of company insolvency in Scotland. However, since April 2020, numbers of CVLs have remained higher than numbers of compulsory liquidations.

Between 26 June 2020 and 30 April 2024, in Scotland, no moratoriums were obtained and two companies had a restructuring plan registered at Companies House.

The total insolvency rate in Scotland in the 12 months to April 2024 was 52.7 per 10,000 companies on the effective register. This was up by 0.6 from the preceding 12 months ending April 2023.

Michelle Elliot, restructuring advisory partner at FRP in Glasgow, commented: “Sustained month-on-month growth continues to allude the Scottish economy for now but growth for broader UK plc and a fall in Scottish insolvencies suggests we are beginning to emerge from its lengthy post-Covid hangover.

“Firms must continue to be alive to the risk of insolvency though.

“Many are hopeful of a cut to the base rate materialising next month, however, the summer will continue to be turbulent with businesses still contending with the legacy of high interest rates, input costs and wage growth.”

Don’t miss the latest headlines with our twice-daily newsletter – sign up here for free.