A report published by insolvency trade body R3 shows the proportion of Scottish manufacturers with a heightened risk of insolvency falling in every month since February, despite challenges created by falling oil and gas prices.

The research is based on Bureau van Dijk’s Fame database, which awards companies a score based on their likelihood of insolvency in the next year.

The likelihood is calculated based on various performance indicators including turnover, pre-tax profit, working capital, cash and bank deposits.

It says 22.4 per cent of manufacturing businesses in Scotland were considered at higher-than-normal risk of insolvency, below a UK average of 23.1 per cent.

Manufacturers in London showed a 29.9 per cent risk of insolvency, while manufacturers in Wales and south-east England recorded 24.1 per cent.

Tim Cooper, chairman of R3 in Scotland and partner at Edinburgh-based law firm HBJ Gateley, said the Scottish manufacturing sector was “showing rude health” and a “more robust attitude to risk” than in the rest of the UK.

He suggested the sector “feels it can weather the storm, if there is a storm at all”.

Mr Cooper added: “There are some particular risk factors for manufacturing in Scotland associated with the oil and gas sector but the general feeling is of it being a sector that is capable of dealing with it.”