Scotland's economy has seen dramatic reductions in business distress, says insolvency specialists Begbies Traynor.
In the last three months, there were 119 companies in critical distress (decrees totalling more than £5000 or winding-up petitions), down from 127 in the first quarter and a dramatic drop from 410 in the second quarter of 2012.
Businesses in significant distress (court action or problems with accounts) totalled 9661, down from 10,797 in the first quarter of 2013 and 12,149 a year earlier. Scotland's 71% reduction in critical distress was almost twice the UK average of 39%.
The reductions were strongest in construction (down 78%) manufacturing (53%), real estate and property services (70%) and professional services (91%) .
Ken Pattullo, group managing partner in Scotland for Begbies Traynor, said: "When things improve in the infrastructure and business sectors that support the longer term economic system, we start to feel more comfortable about the prospects for the rest of the consumer facing economy."
Meanwhile the number of wind-up petitions issued by HM Revenue & Customs (HMRC) has fallen by almost 70% in Scotland over the past year, according to law firm Pinsent Masons.
Only 315 petitions to wind-up Scottish companies were filed in 2012-13, down from 986 the previous year, while wind-up orders dropped by 48%.
Ainslie Benzie, a Glasgow-based senior associate in the restructuring team at Pinsent Masons, said: "South of the Border HMRC seems to have switched tactics and is using statutory powers of distraint to effectively seize assets in return for outstanding tax. However, we are not seeing remedies equivalent to distraint in Scotland being used – there simply seems to be less enforcement activity going on."
She added: "Scottish businesses in a distressed position now seem to have a window of opportunity to review their financial position and, where possible, seek settlements."
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