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As advisers move in at diving centre ...

Fewer large firm failures as bosses adapt to climate

Blair NimmoFewer large Scottish businesses are failing as more adapt to tough trading conditions, according to newly-released data.

The number of large companies collapsing in Scotland fell by almost a third (29%) in the last quarter (July-September) compared to same period in 2017 (17 down from 24).

New statistics from KPMG also reveals total administrations in 2018 have fallen by 38% compared to the same nine-month period in 2017 (42 down from 68). 

Liquidations, which affect smaller businesses, increased by 16% compared to the third quarter in 2017 (225 up from 193), and as a result, the total number of corporate insolvency appointments recorded rose by 11% (242 up from 217).  Over a nine-month period liquidations rose by 32% (679 up from 513).

The figures reflect a positive environment for Scotland’s larger corporates, which, in spite of some recent high-profile failures, are demonstrating growth and resilience in the face of uncertainty, says KPMG.

Blair Nimmo (pictured), head of restructuring, said there have been no recent high-profile business failures in Scotland, and at only 57 administration appointments over the last twelve months, numbers are the lowest they have been since the firm’s records began in 2006.

The data was published as Gordon MacLure and Donald McNaught of Johnston Carmichael were appointed as joint administrators of the Underwater Centre in Fort William which ceased trading on 15 October.

One of only two diving centres in the world which provide vital, closed-bell diver training, The Underwater Centre was recognised a centre of excellence for diver training, subsea trials and testing. 

Donald McNaught, restructuring partner at Johnston Carmichael, said: “Despite a long history of providing subsea training and testing, The Underwater Centre has been severely hit by the recent and prolonged downturn in the oil and gas industry.

“Our first priority is the staff and we will be working with PACE and other organisations to ensure they receive the support they need. We will also be working with all stakeholders and interested parties to explore the options for the business and its assets.”


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