The number of Scottish companies folding into insolvency has fallen for the first time since 2008.
Figures released by professional services firm KPMG show Scottish corporate insolvency fell 26.9% in the final quarter of last year compared to the previous year.
The drop from 324 insolvencies in the last quarter of 2011 to 237 contributed to a 6% reduction in Scottish corporate insolvency appointments last year.
Figures for the year fell from 1,277 in 2011 to 1,200.
The number of liquidations, which usually involve smaller companies, fell throughout 2012 by 2.8% compared to the previous year, to end on a total of 1,059.
According to KPMG this annual reduction was driven by a year-on-year decrease in the final quarter of 29.6%, from 280 in 2011 to 197.
Administrations and receiverships, which typically involve larger business, fell 24.6% compared to 2011.
Blair Nimmo, head of restructuring for KPMG in Scotland, said the figures represent the first year-on-year reduction in failing Scottish businesses in fouryears.
“However, the reduction is not significant enough to indicate that the many challenges posed by the current global economic climate have been completely overcome,” conceded Mr Nimmo.
“The second half of 2012 was quieter for corporate insolvencies, but there were a number of high-profile appointments during that time which create the impression of great and worsening difficulties across the economy.
“Notable among those appointments are those made in the retail sector as these tend to dominate the news agenda and lead to the belief that things are worse than they actually are,” he added.
“We are finding that most companies now accept that things have changed post-2008 and there is unlikely to be a material upturn within the next couple of years.
“Those companies have become adept at ‘fighting the fight’ and adapting their operations to cope with tough economic conditions,” he said.
“This requires them to keep a tight leash on cost control and be vigilant of their business’ cash at all times.
“Having got this far through five difficult years, many Scottish businesses will now hope to survive until growth returns to the economy but until that time we will continue to see very little speculative investment or transactional activity.”
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