SBF discusses increase in UK insolvency figures

Michael Levack, chief executive, SBF has said the latest preliminary UK insolvency figures indicate that the number of Scottish construction firms forced into compulsory insolvency, has rocketed by 245 per cent in the last three months of this year, compared to the same period as last year.

Michael states that this paints a worrying picture of the continuing impact of the economic downturn on Scotland's construction sector.

Figures from the Office of National Statistics, published by the UK Insolvency Service, show that the number of construction companies in Scotland entering compulsory insolvency jumped from 14 in the second quarter of 2009 to 48 in the last three months of this year.

Furthermore, the compulsory liquidations from Q1 2010 to Q2 2010 has risen 14.5 per cent from 42 to 48 construction firms.

Meanwhile, the number of Scottish firms in the construction sector subject to creditors' voluntary liquidations rose 120 per cent from 10 to 22 in last three months of this year.

The number of Scottish construction firms enter creditors' voluntary liquidations rose 215 per cent from seven to 22 in last three months of this year compared to the same period as last year.