December 2024 saw a 24% decrease in company insolvencies compared to the same month in 2023, with 82 registered cases. This comprised 52 voluntary liquidations, 27 compulsory liquidations, and three administrations.

The overall insolvency rate for 2024 was slightly down at 51.9 per 10,000 companies.

Michelle Elliot, restructuring advisory partner at FRP in Glasgow said: “While we expect to see month-to-month fluctuations like these, overall volumes will remain elevated throughout the year ahead.

“Rising cost pressures are an immediate challenge many firms are facing, which are set to be exacerbated by the National Insurance and minimum wage increases in April. While the full extent of the of this remains to be seen, it will put particular strain on sectors like hospitality and retail, which haven’t had the revenue boost they’d been hoping for after disappointing ‘golden quarter’ trading.

“Vigilance and proactivity in the face of distress will continue to be critical to firms’ resilience.”