This was comprised of 40 compulsory liquidations, 65 CVLs and three administrations. There were no CVAs or receivership appointments.

Michelle Elliot, restructuring advisory partner at FRP in Glasgow, commented: “High interest rates, unrelenting energy bills and spiralling operational costs mean Scottish businesses across a wide range of sectors have come into the new year facing a myriad of liquidity and cashflow challenges.

“Although December brought a slowing in insolvency rates, we’re expecting them to increase further in the months ahead.”

She continued: “In some sectors, pressures are particularly acute, with construction, hospitality and leisure, and food-related manufacturing all facing heightened stages of financial distress.

“Although falling inflation is a positive sign of some improvement in economic conditions, the thicket of challenges remains. Management teams need to make sure that they’re keeping a close eye on cash flow forecasts, tightly managing working capital, and monitoring for any signs of customer or supplier distress.

“Being proactive, rather than reactive, will be critical.”