The number of Scottish companies going out of business has fallen to pre-recession levels, according to new data, although the shutdown of steel operations may see an upturn in future figures.

There was a 30% fall in insolvencies to 177 in the last quarter compared to the same period in 2014 (254), the lowest since 2007 (151).

Blair Nimmo, head of restructuring for KPMG in Scotland, said: “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.

“That being said, we’re reaching a natural levelling off period which will likely prevail, irrespective of economic conditions, meaning we will continue to see similar numbers of businesses going into liquidation and administration.

“The effects of the recession are still fresh on the minds of most corporates, which is reflected by cautious optimism. Instead of a flood of deals, businesses are focusing on less risky transactional activities.

“From a sector perspective, the low oil price looks like it might be around for a while yet, but it is pleasing to note that most corporates are addressing this through active cost and working capital control and this is certainly where we are concentrating our efforts with clients.

“We have also recently seen significant problems in the steel sector, albeit it is a little early to forecast the likely outcome and impact across Scotland.”

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