The number of companies going to the wall dropped in the last part of 2013 owing to improved economic conditions and last-minute investments.

Corporate insolvency statistics published today show that 4,398 businesses went bust in the final three months of the year, down 6.8 per cent from 4,720 during the prior three-month period.

In the whole of 2013 18,841 companies failed compared with 20,749 in 2012, a steep drop of 9.2 per cent year-on-year.

But after analysing the figures PricewaterhouseCoopers (PwC) business recovery partner Mike Jervis said the drop was partly down to last minute cash injections.

"The quarter's low level of insolvency has been driven by the availability of investment funds to help bring companies back from the brink of collapse,” he said.

“Hedge funds and distressed venture capital funds are the busiest part of the restructuring community.

He added that the UK is doing better in this area than much of Europe: "The insolvency levels in the UK compare very favourably to other Eurozone economies, notably Spain and Italy, where the insolvency trend is still rising,” said the PwC spokesman.