THE number of Scottish corporate insolvencies in the third quarter was down 23 per cent on the same period of last year, amid steadier times for the oil sector, analysis by KPMG reveals.

The accountancy firm noted corporate insolvencies in Scotland had now shown year-on-year falls for three straight quarters. Its figures show there were 217 corporate insolvencies in Scotland in the three months to September, down from 282 in the third quarter of 2016.

Blair Nimmo, KPMG’s UK head of restructuring, said: “Following a challenging time for the oil and gas sector, it appears the ship has been steadied. The adoption of new business models and significant cost-cutting measures have left the energy industry in a more comfortable position and, as a result, we have seen fewer insolvencies in that sector. Elsewhere, it is difficult to detect any obvious sector weaknesses, with most companies understandably adopting a cautious approach to business, given the broader political and economic climate.”

He declared “the impact of Brexit remains on the horizon, with no obvious influence yet being felt” in terms of corporate insolvency numbers.

But he added: “Looking ahead…uncertainty in a broader sense may leave a negative impression on consumer and corporate confidence. The weak exchange rate may take its toll on certain sectors, and inflation is at its highest level in five years.”

The pound’s tumble following last year’s Brexit vote has played a key part in fuelling inflation.

There were 802 Scottish corporate insolvency appointments in the year to September, down from 1,040 in the prior 12 months, KPMG said.