CM December 2023

EXCLUSIVE PAYMENT TRENDS
ONE-WAY TRAFFIC
Late payments across UK and Irish regions
and sectors continue to rise.
AUTHOR – Rob Howard
THE latest late payment statistics show things are continuing
to move in the same direction.Unfortunately, it’s the wrong
direction, with late payments on the rise across the board in
the UK and in Ireland. The average Days Beyond Terms (DBT)
across UK regions and sectors increased by 0.4 and 2.2 days
respectively. Over in Ireland, the average DBT figure rose
by 1.6 and 0.7 days respectively. Average DBT across the four provinces of
Ireland dropped by 2.1 days.
SECTOR SPOTLIGHT
For the most part, the UK sector standings don’t make for pleasant reading,
with 15 of the 22 sectors going the wrong way. Two sectors in particular have
seen a significant hit to late payments. The Other Services sector (which
includes dry cleaners, hairdressers and other beauty services through to
membership organisations), saw the biggest rise, an increase of 22.4 days
taking its overall DBT to 37.7 days, meaning it is now the worst performing
UK sector. It is closely followed by the International Bodies sector, with a
sharp increase of 22.2 days taking its overall DBT to 36.2 days. On a more
positive note, although the Financial and Insurance sector remains towards
the bottom of the standings with an overall DBT of 27.0 days, it is, at least,
making strides in the right direction, cutting its DBT by 16.0 days.
The picture over in Ireland isn’t too dissimilar, with just three of the 20
sectors making improvements to late payments. It’s worth noting that five
sectors saw no change whatsoever to DBT, but the remaining 12 sectors are
all going backwards. The IT and Comms sector saw the biggest jump, with an
increase of 18.5 days. Elsewhere, the Transportation and Storage (+15.3 days)
and Wholesale and retail trade; repair of motor vehicles and motorcycles
(+14.4 days) sectors also saw steep increases to DBT. Of the three sectors
making progress, the Real Estate deserves a mention. Although it remains
at the bottom of the Irish sector standings, it has cut the deficit, reducing
its DBT by a noteworthy 60.0 days, takings its overall figure to 34.0 days.
The picture over in
Ireland isn’t too
dissimilar, with just
three of the 20 sectors
making improvements
to late payments. It’s
worth noting that five
sectors saw no change
whatsoever to DBT,
but the remaining 12
sectors are all going
backwards.
REGIONAL SPOTLIGHT
The latest UK regional data shows just over half (six) of the 11 regions
are going backwards. London has slid down to the bottom of the
standings, with an increase of 4.8 days taking its overall DBT to
18.8 days. The West Midlands isn’t too far behind, an increase
of 4.2 days taking its overall DBT to 14.5 days. At the other end
of the scale, the North West made the biggest improvement
and has shot up the standings following a reduction of 5.3
days, taking its overall DBT to 11.2 days. Despite an increase of
1.8 days, the South West remains the best performing region with
an overall DBT of 10.4.
Over in Ireland, just under half (12) of the 26 regions saw increases
to DBT. The county of Wicklow saw the biggest rise and moves towards
the bottom of the standings following an increase of 27.0 days to its DBT.
Elsewhere, Carlow (+24.8 days), Tipperary (+11.0 days) and Limerick (+8.7
days) also saw sharp increases to late payments. Looking at the positives,
Kilkenny saw the biggest improvement, cutting its DBT by 27.0 days, and
taking its overall DBT to 1.0 day.
The four Irish provinces provide a positive, with three of the four moving
in the right direction with reductions to DBT. Although Munster remains at
the bottom of the standings, it did make the biggest improvement, cutting
DBT by 7.4 days. Connacht reduced its DBT by 0.4 days, taking its overall DBT
to 6.3 days overall. Leinster takes over as the best performing province with
an overall DBT of 4.1 after cutting late payments by 5.2 days.
Data provided to the CICM and its members exclusively
by Creditsafe Group and with thanks to Jason Braidwood FCICM.
Brave | Curious | Resilient / www.cicm.com / December 2023 / PAGE 47