The number of Scottish firms failing in 2014 rose by 8.7per cent, according to an analysis by advisers BDO.

The latest Accountant in Bankruptcy (AiB) figures show that 896 Scottish companies went bust during 2014 compared with 824 in 2013.

After dropping to only 583 in 2006, annual business failures peaked at 1278 in 2011 and 1264 in 2012, falling dramatically by a third to 824 last year.

The 2014 total of 896 includes 656 compulsory liquidations, the highest in the past 15 years excepting the three slump years 2010-12. There were 235 creditors' voluntary liquidations and only five receiverships, the lowest 15-year total.

Bryan Jackson, business restructuring partner with BDO, said: "The rise in the number of corporate insolvencies during 2014 is unwelcome, but not unexpected. Although the numbers are high the size and scale of these businesses may be relatively small. However, it is true to say that many companies have simply been existing, barely maintaining solvency in the hope and expectation that an upturn in the market will be around the corner."

Mr Jackson said that despite signs of improvement in the UK economy, the floundering eurozone and the falling oil price posed a continuing threat.

He went on: "Business owners need to prepare themselves for a bumpy ride in 2015 as the patchy growth in many parts of Europe may impact on growth in Scotland. I would expect corporate insolvency numbers to rise or remain very high in the coming year as the economy adjusts to a fairly difficult period in the overall recovery. Business owners should look at all aspects of their business finances if they are to ensure they can escape the possibility of insolvency in 2015."

In the market for personal insolvencies, which fell to a 10-year low of 11,621, the once buoyant protected trust deeds fell to their lowest level since 2001. The AiB also recorded the lowest total of low income low asset sequestrations since they were introduced by the Scottish Government in 2008.