201509 CM September

STORM
CLOUDS
GATHERING
5 6 7 8
Jason Braidwood MCICM(Grad), Head of Sales Ledger
Consultancy at Creditsafe Business Solutions analyses the
latest monthly business to business payment performance
statistics.
10
AFTER an encouraging spring we bounce back after a dip in performance in
5
are beginning to see payment June although it still has a way to go before
6 5 4 3 2 1 0 0 1 2 3 4 5 6 7 performance 8 0
take a slight turn for we see average Days Beyond Terms (DBT)
5 6 7 8
Aug Sep Oct Nov Dec Jan Feb Mar Apr23.8
Region
23.8 the worse in our monthly analysis of down to five days as 25 May Jun Jul
it was recently in May.
25
Scotland
Creditsafe’s trade payment data databases. Hospitality and Entertainment along with
20
18.2 17.4 17.3
20
ide
18.1 15.7 15.9 16.3 15.7 15.8 16.2 16.1 16
DBT
As you can see from the review of the Agriculture are also in our top five prompter
15
15
Getting Better
national picture over the last year, while we payers, as they have been for much of the
10
10
5 are not yet near the late payment levels a year – but once again their DBT figures are
Scotland -2.1
5
0 year or so ago the positive picture from the noticeably higher than they were earlier
0
Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
earlier part of the year has been replaced in Jul
+2.9 North West
the year. On the other hand problems
Scotland
rside
by a trend that seems to be moving in continue in the Utilities sector as once again
18.1 DBT
Scotland
+2.1 Yorkshire & Humbersidethe wrong direction. Perhaps all the 18.1 bad Mining and Quarrying and Energy Supply
DBT
Northern
weather this summer is stopping people both appear in the bottom five with Mining
Ireland
+1.5 West Midlands
23.4 DBT
getting out and posting their cheques!. and Quarrying also taking the biggest step
North West Yorkshire &
It’s by no means a devastating picture backward this month. Our old friend Water
20.5 Humberside
DBT
+3.1 East Midlands
16.4 DBT
but it does look consistently disappointing and Waste is sitting just outside the bottom
Northern
Ireland
+0.7 East Anglia
with few industry sectors showing any five as well and it’s also disappointing to
23.4 DBT
North West Yorkshire &
real improvement, with the honourable see Manufacturing in the bottom five again
Humberside
East
20.5
Northern
DBT
16.4 DBT
Midlands
Ireland
+1.9 Wales
exception of Finance Insurance, and after some improvement of late.
17.9 DBT
23.4 DBT
North West Yorkshire &
West all regions of the UK except Scotland
East
20.5 Humberside
DBT
+2.1 South West Midlands Midlands
just that East bit Anglia worse. However, the average 16.4 REGIONS
DBT
Wales17.9 DBT 19.3 DBT
West
is now rooted 14.5 DBT
18.6 firmly above two weeks If we split the country on a regional basis
DBT
+2.8 South Midlands East
East Anglia
Wales 19.3 DBT
beyond terms and is potentially heading the East rough north-south divide seems to
14.5 DBT
18.6 DBT
London
Midlands
+2.6 London
out towards three, while deeper analysis be generally in place, with the regular
London
19.6 17.9 DBT
DBT
West
19.6 in some industry sectors this kind of late exceptions of Yorkshire and Humberside on
DBT
South East
Midlands
South East
East Anglia
+1.8 Northern Ireland South payment is becoming the norm, month the positive side and London in the bottom
South West
18.6 West
18.6
Wales
DBT
19.3 DBT
DBT
14.5 DBT
18.6 DBT
16.8 DBT 16.8 DBT after month. We would of course always five. As noted before we’ve moved from a
Getting Worse
recommend that all credit professionals situation London two months ago of improvement
19.6 DBT
keep a close eye on these trends, not across the board to one where all the
South East
Bottom Five Poorer Payers
just in terms of managing your collection South West regions except 18.6 DBT Scotland have taken a step
Bottom Five Poorer Payers
16.8 DBT
5
Region July 15 Change on June 15
strategies, but in setting terms in the first backwards. None of these regions appear
Finance
Wholesale
Northern Ireland Insurance 23.4 Hospitality +1.8
and Retail
Constructionplace, particularly with new customers. to be making spectacular falls but the
etter North Region West -12.5Finance
20.5 -1.7July +2.915 -0.3 Change on June 15 Wholesale -0.1
general trend is one that we all need to be
London 19.6 +2.6
Northern Ireland Insurance 23.4 Hospitality +1.8
and Retail
Construction
Wales Top Five Prompter 18.6 Payers +1.9
INDUSTRY Bottom Five SECTORS Poorer Payers
keeping a close watch on.
tter orse Scotland North Mining & West -12.5 Business 18.1 20.5 -1.2 IT & Comms -1.7+2.9
Professional -0.3 Education
A deeper look -0.1 at industry by sector reconfirms
Quarrying
from Home
& Scientific
London Region 19.6 +6.8 July 15 +2.6 Change on June 15
+12.2 +9.7
+6.5
+6.2 Region
some Finance
July 15 Change on June 15
of the trends we’ve seen
Wholesale
Wales East Anglia 18.614.5 +1.9 +0.7
Northern Ireland Insurance 23.4 Hospitality +1.8
and Retail
Construction
over the last six months or so. On the plus HJason Braidwood MCICM(Grad) Head of
rse Scotland Mining Yorkshire & & Humberside Business 18.116.4 -1.2 IT +2.1 & Comms Getting Better Professional
North West -12.5 Education 20.5 +2.9
side Finance and Insurance is looking
-1.7
to Credit -0.3 & Collections -0.1 - Creditsafe Group
Quarrying South West from Home 16.8 +2.1
London & Scientific
19.6 +2.6
+6.8
+6.2
+12.2
East Midlands
+9.7
17.9 +3.1
Wales +6.5
18.6 +1.9
South East 18.6 +2.8 Getting Worse Scotland Mining &
Business 18.1 -1.2 IT & Comms
Professional
Education
Quarrying
from Home
& Scientific
+6.8
+6.2
30 September 2015 www.cicm.com
The recognised standard in credit management
+12.2
25
20
15
23.8
+9.7
18.2
15.7 15.9 16.3 15.7 15.8 16.2 16.1 16
17.4 17.3
+6.5
18.2
15.7 15.9 16.3 15.7
Aug Sep Oct Nov Dec Jan