Credit Management April 2024 issue

EXCLUSIVE PAYMENT TRENDS
GREEN TICKET
The latest late payment data shows
Irish regions and sectors leading the way.
BY ROB HOWARD
AFTER a tricky month that saw
increases across the board, the
latest late payment statistics appear,
at least, to offer some signs of
encouragement, particularly over in
Ireland, with a number of regions
and sectors reducing late payments.
The average Days Beyond Terms (DBT) across UK regions
increased by 1.3 days, while the average sector figure saw no
change. In Ireland, average DBT reduced by 2.1 and 0.7 days
respectively. Average DBT across the four provinces of Ireland
increased by 0.2 days.
Sector Spotlight
With the average DBT figure staying still, the UK sector
standings are also pretty stable, but encouragingly are swayed
slightly in favour of good news, with 12 of the 22 sectors
making improvements to DBT. The International Bodies
sector saw the biggest leap forward, and moves off the bottom
of the standings, after reducing its DBT by 9.6 days to take its
overall total to 13.4 days. The Energy Supply sector also made
strides forward, cutting its DBT by 4.5 days, taking its overall
DBT to 7.0 days, making it the new best performing sector in
the UK. Of the 10 sectors going in the wrong direction, the
Education sector saw the biggest rise, with an increase of 8.1
days taking its overall DBT to 18.2 days.
Over in Ireland, more than half (11) of the 20 sectors made
improvements to DBT, while two saw no change, and the
remaining seven went in the wrong direction. Of those on the
up, the Financial and Insurance (-13.5 days), Water & Waste
(-11.8 days) and Entertainment (-11.4 days) sectors all made
significant reductions to their DBT.
Elsewhere, thanks to a cut of 6.5 days to its DBT, the Public
Administration sector joins the International Bodies and
Mining and Quarrying sectors – which both saw no change to
their DBT – at the top of the standings with an overall DBT of
zero days. At the opposite end of the scale, the Energy Supply
(+15.5 days) and Manufacturing (+14.7 days) sectors have slid
down to the bottom of the standings, with hefty increases
taking overall DBT to 33.0 and 31.3 days respectively.
Regional Spotlight
The UK regional figures are disappointing, with eight of the
11 regions seeing rises to DBT. East Anglia (-2.2 days), the East
Midlands (-1.2 days) and Wales (-0.7 days) were the only three
regions to make progress. The Yorkshire and Humberside
region is now the worst performing in the UK, with an
increase of 3.9 days taking its overall DBT to 17.0, although
Scotland is not far behind with an overall DBT of 16.8 days
following an rise of 1.3 days to its total.
The picture is more positive over in Ireland, with half (13) of
the 26 counties reducing DBT. Even better, a number of these
counties made sizeable improvements. Wexford made the
biggest jump in the right direction, reducing its DBT by 19.1
days and taking its overall total to 8.2. Elsewhere, Clare (-17.9
days), Longford (-15.4 days), Kildare (-13.2 days) and Laois
(-12.3 days) all made significant improvements to DBT.
Of the 10 counties going backwards (the remaining three
counties saw no change) counties Wicklow (+15.1 days),
Tipperary (+10.6 days) and Waterford (+10.5 days) saw the
biggest increases to DBT.
Despite a rise in the average overall DBT figure, three
(Connacht -2.0 days, Munster -8.1 days and Ulster -2.9 days)
of the four Irish provinces made improvements. Leinster is
letting the side down, with a steep increase of 13.7 days taking
its overall DBT to 32.2 days, making it the worst performing
province by some distance.
Brave | Curious | Resilient / www.cicm.com / April 2024 / PAGE 47