CM MARCH 2022

PAYMENT TRENDS
Backward Step
The latest late payment figures show
declining performance across the board.
AUTHOR – Rob Howard
IF you look hard enough, you’ll
find some positives in the latest
late payment statistics, but the
overall picture isn’t so rosy and
there are a number of sectors
and regions moving in the wrong
direction. The average Days Beyond
Terms (DBT) across regions and sectors
in the UK increased by 3.2 and 4.4 days
respectively. In Ireland, regional figures
reduced by 0.5 day, but increased by 5.5
days across sectors. Average DBT across
regions in Northern Ireland increased by
1.5 days.
SECTOR SPOTLIGHT
The UK sector spotlight is fairly grim,
with all but two of the 22 sectors seeing
increases to late payments. The Financial
and Insurance (-1.9 days) and Energy
Supply (-1.1 days) sectors made small
improvements, but it’s red across the rest
of the board. The Mining and Quarrying
(+8.6 days), Public Administration (+8.5
days), International Bodies (8.0 days)
and Transportation and Storage (+6.9
days) saw the biggest increases, but it’s
the Water & Waste sector which remains
at the bottom of the standings, with a
further increase of 2.6 days taking its
overall DBT to 29.1 days.
Over half of the 20 sectors in Ireland
experienced no change to DBT, and only
five experienced increases. So on the
surface, it doesn’t sound so bad, but the
scales of the increases for the five sectors
do warrant concern. The Real Estate
sector, for example, saw the biggest
change, increasing by a massive 46.9
days. Similarly, the Construction and
Transportation and Storage experienced
large shifts, with DBT increasing by 32.8
and 29.0 days respectively.
REGIONAL SPOTLIGHT
As with the sector standings, the
UK regional figures do not make for
pleasant reading, with all 11 regions
moving in the wrong direction. Wales
saw the biggest jump, with an increase
of 5.7 taking its overall DBT to 22.6 days
and replacing East Anglia as the worst
performing region. Despite an increase
of 2.6 days, the South West remains the
best performing region.
The Irish standings are more
encouraging, with a number of regions
making improvements and a number
seeing no change to DBT. Mayo (-17.3
days), Offaly (-14.8 days), Kerry (-13.7
days) and Wicklow (9.0 days) all made
notable reductions to late payments.
Some twelve regions are tied at the top of
the standings with zero days DBT. Seven
regions, however, experienced increases
to their terms. A hefty increase of 27.5
days means Kildare’s overall DBT now
stands at 68.5 days.
In Northern Ireland, there’s a 50-50
split of improvement and decline. Making
positive strides in the right direction is
Ulster, with a significant reduction of
13.5 days to late payments. Also on the
up is Munster, with a reduction of 3.9
days taking its overall DBT to 0.2 days
and making it the new best performing
region. Leinster was previously at the top
of the standings with zero days DBT, but
a dramatic increase of 22.4 days mean
it is now the worst performing region.
Connacht’s DBT increased by 0.9 days.
The overall picture isn’t so rosy and there are a
number of sectors and regions moving in the
wrong direction.
Brave | Curious | Resilient / www.cicm.com / March 2022 / PAGE 32