CM October 2023

PAYMENT TRENDS
MAKING HEADWAY
The latest late payment figures show improvements
across the board.
AUTHOR – Rob Howard
ON the face of it, the
latest late payment
statistics are brimming
with positives, with the
vast majority of UK and
Irish regions and sectors
making improvements to their Days
Beyond Terms (DBT). The average DBT
across UK regions and sectors reduced by
3.1 days and 2.7 days respectively. Over in
Ireland, the average DBT figure dropped
by 2.9 and 5.8 days respectively. Average
DBT across the four provinces of Ireland
decreased by 7.3 days.
Sector spotlight
Most sectors across the UK are on an
upward trajectory, with 18 of the 22 sectors
making reductions to late payments. The
Business from Home sector, in particular,
is on the charge, slashing its DBT by 13.3
to 10.4 days overall, the biggest reduction
by some distance. A cut of 6.7 days has
shot the Energy Supply up the standings,
now with an overall DBT of 3.9 days. But
it’s the Public Administration that takes
top spot with a cut of 6.2 days taking its
overall DBT to 1.9 days, making it the best
performing UK sector. Of the four sectors
moving in the wrong direction, the
Education sector saw the biggest jump,
with an increase of 6.3 days taking its
overall DBT to 15.1 days. It was the worst
performing UK sector but summer is over
and a new academic term could remedy
this.
In Ireland, the outlook is similarly rosy,
with all but two of the 20 sectors on the
up or seeing no change to DBT. Although
the Business Admin and Support sector
remains at the bottom of the rankings,
it did however make a significant move
forward, reducing its DBT by a sizeable
33.3 days to 33.2 days overall. Similarly,
The Water & Waste sector is also fighting
back, with an improvement of 16.8 days
taking its overall DBT to 30.1 days. At the
opposite end of standings, reductions for
the Entertainment (-6.2 days), Hospitality
(-6.6 days), IT and Comms (-9.8 days)
and Public Administration (-2.0 days)
sectors, mean they join the Education,
International Bodies and Mining
Quarrying (who all saw no change to DBT)
sectors with an overall DBT of zero days.
Regional spotlight
It’s one-way traffic across UK regions,
with all 11 moving in the right direction
and reducing DBT. The South West is
now the best performing region with
an overall DBT of 6.7 days thanks to a
decrease of 6.1 days. It’s closely followed
by the South East, with a reduction of
4.4 days taking its overall DBT to 7.7
days. Northern Ireland saw the biggest
improvement, taking 6.6 days off its DBT.
Once again there were some significant
reductions to DBT across the Irish
counties, and no bigger than in Kildare,
slashing 45.4 days off to take its overall
DBT to zero days. Elsewhere, the counties
of Meath (-39.1 days), Offaly (-30.6 days),
Wexford (-27.2 days) and Wicklow
(-23.5 days) also made noteworthy
improvements to their DBT. Alongside
The Water and
Waste sector is
also fighting
back, with an
improvement of
16.8 days taking
its overall DBT to
30.1 days.
Kildare, there are 10 other counties
tied on zero days DBT. However, at the
opposite end of the standings, Westmeath
and Donegal remain cut adrift by some
distance, and even from each other,
neither county saw any change, keeping
their overall DBT at 120 and 80 days
respectively.
As with the UK, it’s a clean sweep
across the four Irish provinces, with each
making reductions to late payments.
Leinster remains the best performing
province after cutting its DBT by a further
5.1 days, taking its overall DBT to 2.2
days. Connacht isn’t too far behind on 3.7
days overall, following a reduction of 3.8
days. Munster too (-3.7 days) made steady
progress, but Ulster saw the biggest
improvement, chopping its DBT by 16.7
days, taking it to 18 days overall.
Brave | Curious | Resilient / www.cicm.com / October 2023 / PAGE 47