SCOTTISH corporate insolvencies in the first quarter were up by 67 per cent on the same period of last year, official figures have revealed.

Tim Cooper, who chairs insolvency trade body R3 in Scotland, highlighted his view that the latest figures signalled a return to a trend of rising corporate insolvencies which began in early 2017, following a year-on-year dip in company failures in the fourth quarter of last year.

The figures, from the Accountant in Bankruptcy (AiB), show there were 259 corporate insolvencies in the opening three months of 2018, up from 155 in the first quarter of last year.

In the fourth quarter of last year, corporate insolvencies totalled 202, which was down from 210 in the final three months of 2016.

Mr Cooper said: “After a dip three months ago, the sharp rise in corporate insolvencies in the last quarter returns us to the trend of rising corporate insolvencies which began in early 2017. Corporate insolvency levels are back to where they were at the end of 2015, although it should be noted that insolvencies are still way below where they were in 2011/12.

“In many respects, this rise is not too surprising. Insolvencies of well-known companies have featured regularly on the newspaper front pages since the start of 2018, with further reports of firms scrambling to renegotiate rents and contracts with suppliers and landlords.”

He added: “It’s important to note that the AiB does not record administrations or company voluntary arrangements, without which it’s hard to get an idea of the full picture in Scotland.”

The AiB observed that corporate insolvencies in Scotland in the first quarter of 2017 had been “particularly low”.

However, it also noted that, comparing the year to March with the preceding 12 months, the number of corporate insolvencies in Scotland was up by 4.7% at 886.

Mr Cooper noted that R3’s members had reported that a number of companies “sought urgent advice” in the wake of the liquidation of construction and services company Carillion.

He said: “It’s difficult to assess the extent of any potential ‘domino effect’ from Carillion’s insolvency on other companies.”

Mr Cooper also cited the potential impact of severe weather and retail sector weakness.

He said: “Another key factor behind the rise in insolvencies could well have been the repeated bouts of severe weather which froze activity in our high streets, roads, and on construction sites. Festive trading was also not as strong as anticipated for many firms, and the prospect of the looming ‘quarter day’ rent payment due at the end of March may well have been the final straw for a number of firms.”