This was comprised of 34 compulsory liquidations, 46 CVLs, seven administrations and one CVA. There were no receivership appointments.

Historically, the volume of company insolvencies registered in Scotland has been driven by compulsory liquidations. However, since April 2020, numbers of CVLs have remained higher than numbers of compulsory liquidations.

Michelle Elliot, restructuring advisory partner at FRP in Glasgow, said: “This is likely a temporary dip in what’s expected to be an upwards trend in insolvency numbers this year.

“Many Scottish businesses, like those across the rest of the UK, came out of the Covid-19 pandemic shouldering significant debt burdens. The financial pressure of this has since been compounded by factors like higher interest rates and weak demand – factors that will keep biting over the months to come, even as wider economic conditions gradually improve.

“So far, we’ve seen the majority of collapses happening within smaller businesses. Should a greater number of larger firms start to fail, there’s the risk of an amplified ‘domino’ effect across the economy as their supply chains are hit. Management teams will need to remain hyper-vigilant for cracks in their operations, and be quick to react when they spot issues.”