THE number of Scottish corporate insolvencies fell in the first quarter, analysis by KPMG has shown.

The accountancy firm calculated that there had been a total of 188 corporate insolvency appointments in the three months to March 31 in Scotland, including liquidations and administrations.

This was down by 21 per cent on the first quarter of last year, and 10 per cent lower than in the closing three months of 2014.

Blair Nimmo, head of restructuring for KPMG in Scotland, cited a more positive trading environment, against a backdrop of economic recovery, as the reason for the fall in corporate insolvencies in the opening three months of this year.

However, he also flagged a cautious approach by businesses amid uncertainty over the impending General Election result, and also the impact of swings in oil prices.

Mr Nimmo said: "It's clear as we enter the second quarter of 2015, in general businesses are in a stronger position. Buoyed by an overarching recovery, economically we're seeing a positive trading environment for both large and smaller organisations in Scotland, which is reflected by the drop in insolvency appointments.

"That being said, volatility in oil prices as well as uncertainties around the outcome of the General Election may have wider repercussions for the economy as businesses adopt a wait-and-see approach to growth."

The number of administration appointments, which KPMG noted typically affected larger organisations, totalled 20 in the first quarter, up from 19 in the opening three months of last year but well down on the average at the height of the recession.

The number of liquidation appointments in the first quarter, at 168, was down by 24 per cent from 220 in the opening three months of last year.

Mr Nimmo noted KPMG's restructuring and debt advisory practices remained "busy" dealing with issues that remained "critical" to many businesses, including pension deficits, working capital management, cost reduction and refinancing.