A total of 75 insolvencies were registered, comprising 37 Creditors’ Voluntary Liquidations (CVLs), 32 compulsory liquidations, and six administrations. No Company Voluntary Arrangements (CVAs) or receivership appointments were recorded.

The insolvency rate for the 12 months to January 2025 stood at 51.3 per 10,000 companies on the effective register, a slight decrease of 1.3 from the 12 months ending January 2024.

Michelle Elliot, restructuring advisory partner at FRP in Glasgow, said: “While we’ve started the year with a fall in insolvency levels, further drops are by no means guaranteed.

“Businesses’ costs are steadily rising, and demand and consumer confidence is weak. This is a perfect storm – firms are not only facing weaker sales, but also extremely limited in their ability to offset cost pressures by increasing their prices. Add to this the fact that many companies are still shouldering unsustainable levels of debt amid what are still historically high interest rates, and you have a recipe for distress.

“Management teams will have welcomed this month’s interest rate cut and the prospect of more to come, but these alone won’t be enough to offset the headwinds companies face. Businesses will need to continue to be vigilant for any cracks in their operations.”