Credit Management magazine December 2024

CREDIT MANAGEMENT

CM

DECEMBER 2024

THE CICM MAGAZINE FOR CONSUMER AND

COMMERCIAL CREDIT PROFESSIONALS

Inside

CICM DESKTOP

CALENDAR FOR

2025

A stitch in time?

Investment is needed

for collections to remain

competitive.

Sean Feast FCICM

speaks to Alasdair Reisner

of CECA. Page 24

Urgent action is demanded

to address Enforcement

fees. Page 38

SEAN FEAST FCICM

MANAGING EDITOR

Editor’s column

TIME TO

LEVEL THE

PLAYING FIELD

WELL that all went rather

quickly, didn’t it? The

year I mean. It only

seems like yesterday

that I was writing this

column for Christmas

2023, and now here we

are, 12 months on, when so much has changed but so much

has also stayed the same.

In many respects, this year seems to have been a year of

marking time. The elections on both sides of the Pond will

of course have had something to do with that, impacting

markets, delaying investments, making individuals and

businesses pause and think twice before making a decision

that could have profound consequences.

Progress on many fronts has been painfully slow. The

final implementation deadline for Consumer Duty has

arrived, but whether the initiative will have the impact the

FCA intends is still in debate. Controversial proposals to

make enforcement investigations public have been aired,

and other regulation that was promised either hasn’t

materialised or has been kicked down the road.

Three years after Woolard confirmed the need to regulate

BNPL, for example, and we’ve advanced about as far as an

asthmatic ant with some heavy shopping (with apologies

to Blackadder). But then promises like pie crusts are made

to be broken. Just ask Mr Bates and the Post Office.

In our lead section, Daniel Spenceley and David Sheridan

FCICM give their own individual perspectives on the

consumer collections industry, Daniel wearing his trade

association hat and David as a practitioner. It’s a sector

that seems to take one step forward and two steps back,

confronting many of the same issues and challenges today

that it was 30 years ago when I first started writing about it.

And it’s not a story particularly filled with Christmas cheer.

I think what really irritates me the most, is that you can

have one rule for one, and a completely different rule for

another. And meantime, those in authority do absolutely

nothing about it. To be specific, how is it you can have a

heavily regulated consumer debt recovery sector where if

you so much as blink out of turn the FCA comes down on

you like a ton of bricks, while public sector debt recovery

is a free for all, and certainly not with any focus on a good

outcome other than for themselves?

You know the situation is bad when you find yourself

agreeing with Martin Lewis who said of local authorities:

‘Council Tax debt collection is so aggressive, it would

make banks blush.’ Contrast that with the feedback David

Sheridan recently received from a lady thanking him for

his firm’s support: ‘You have really created a new image

for debt collectors.’

So, if I have a wish for the New Year, and my 16th as interim

Managing Editor, it’s that the FCA and the Government

level the playing field. We need to end, once and for all,

the unfairness in the system where one side is regulated

to the hilt, and bears all the cost of compliance, whereas

the other can act with impunity. And we need a system

where every consumer in debt is treated with the same

compassion and respect, no matter who they owe money to.

Brave | Curious | Resilient / www.cicm.com / December 2024 / PAGE 3

contents

December 2024 issue

12 – A MESSAGE FROM THE CEO

A year of challenge and opportunity awaits.

14 – APRES MOI LE DELUGE

The 2024 Autumn budget could make or break

struggling businesses.

16 – DUTY BOUND

With challenge comes opportunity so what can

we expect in the world of collections in 2025?

22 – FAIR PLAY

Empathetic collections need to be adopted

by all.

24 – TALKING TIME

Sean Feast FCICM speaks to Alasdair Reisner

about civil engineering, journalism, and the

joy of repairing watches.

32 – ROCK THE KASBAH

Algeria is a country with a past and a future.

38 – GETTING BACK ON TRACK

HCEOA calls for urgent Government action on

fees to track inflation.

40 – KEEPING IT REAL

Is it time to abolish retentions in construction?

44 – THE BARE MINIMUM

The National Living Wage is still an employer

minefield.

Al

44

HR MATTERS

14

INSOLVENCY

The 2024 Autumn Budget could

make or break struggling businesses.

16

DUTY BOUND


32

COUNTRY FOCUS

CICM GOVERNANCE

President: Stephen Baister FCICM

Chief Executive: Sue Chapple FCICM

Executive Board: Chair Neil Jinks FCICM

Vice Chair: Allan Poole FCICM

Treasurer: Glen Bullivant FCICM

Larry Coltman FCICM

Peter Gent FCICM(Grad)

Paula Swain FCICM

geriaAtul Vadher

Advisory Council: Laurie Beagle FCICM

Laura Brown MCICM(Grad) / Arvind Kumar MCICM(Grad)

Natalie Bunyer FCICM / Glen Bullivant FCICM

Alan Church FCICM(Grad) / Larry Coltman FCICM

Peter Gent FCICM(Grad) / Neil Jinks FCICM

Martin Kirby FCICM / Charles Mayhew FCICM

Joshua Mayhew MCICM / Hans Meijer FCICM

Debbie Nolan FCICM(Grad) / Amanda Phelan FCICM(Grad)

Allan Poole FCICM / Emma Reilly FCICM

Philip Roberts FCICM / Paula Swain FCICM

Jonathan Swan FCICM / Mark Taylor MCICM

FCICM(Grad) / Dee Weston FCICM

22

FAIR PLAY

24

TALKING TIME

Sean Feast FCICM speaks

to Alasdair Reisner

about civil engineering,

journalism, and

the joy of repairing

watches.

View our digital version online at www.cicm.com.

Log on to the Members’ area, and click on the

tab labelled ‘Credit Management magazine.’

Credit Management is distributed to the entire

UK and international CICM membership, as well

as additional subscribers

Publisher

Chartered Institute of Credit Management

1 Accent Park, Bakewell Road, Orton Southgate,

Peterborough PE2 6XS

Telephone: 01780 722900

Email: editorial@cicm.com

Website: www.cicm.com

CMM: www.creditmanagement.org.uk

Managing Editor: Sean Feast FCICM

Deputy Editor: Iona Yadallee

Art Editor: Andrew Morris

Telephone: 01780 722910

Email: andrew.morris@cicm.com

Editorial Team

Rob Howard, Milica Cosic and

Melanie York

Advertising

Paul Heitzman

Telephone: 01727 739 196

Email: paul@centuryone.uk

Printers

Stephens & George Print Group

2024 subscriptions

UK: £134 per annum

International: £166 per annum

Single copies: £14.00

ISSN 0265-2099

Reproduction in whole or part is forbidden without specific permission.

Opinions expressed in this magazine do not, unless stated, reflect those

of the Chartered Institute of Credit Management. The Editor reserves

the right to abbreviate letters if necessary. The Institute is registered as a

charity. The mark ‘Credit Management’ is a registered trade mark of the

Chartered Institute of Credit Management.

Any articles published relating to English law will differ from laws in Scotland and Wales.


THE NEWS

CMNEWS

A round-up of news stories from the

world of consumer and commercial credit.

WRITTEN BY: SEAN FEAST FCICM

Industry and Tech firms

warn of tough times ahead

UK-listed companies issued

84 profit warnings between

July and September 2024,

the highest quarterly

total for two years, with

businesses in the industrial and technology

sectors leading the rise.

EY-Parthenon’s latest Profit Warnings

report found that profit warnings from

UK-listed companies rose 11 percent

compared with Q3 2023, and the proportion

of those that have issued a warning over the

last year now stands at 19.2 percent – the

highest rolling 12-month percentage since

the pandemic and, before that, since 2001.

Leading factors behind Q3’s profit

warnings included contract and order

cancellations or delays, cited in 38 percent

of warnings, the highest percentage for

this reason in 15 years. Falling sales also

triggered a third (33 percent) of the

quarter’s warnings.

The FTSE sectors with the highest

number of profit warnings in Q3 were

Industrial Support Services – which

encompasses business service providers,

industrial suppliers and recruitment

companies – with 10 warnings issued, and

Technology Hardware & Equipment, with

eight.

Customer reluctance to commit to new

contracts and orders was particularly

pronounced in the Industrial and

Technology sectors, where over 90

percent and 70 percent of the warnings,

respectively, were related to either

lower orders or contract delays and

cancellations.

Dan Hurd, EY Partner, Turnaround

and Restructuring Strategy, says firms

have been grappling with a drop in sales,

budgetary pressures and challenging

negotiations with customers: "The FTSE

Industrial Support Services is heavily

reliant on business and public sector

spending, making it particularly vulnerable

to economic uncertainty and cost-cutting

measures.

“The 64 percent quarterly rise in

industrials profit warnings also reflects

the pressure we’ve seen in the commercial

aerospace and automotive sectors. While

end demand is stable in aerospace, the

sector is having to cope with the impact

of industrial action, coupled with supply

chain and production issues at major

airline manufacturers.”

Dan says the automotive sector is also

challenged: “Demand is under greater

pressure,” he says, “with annual car sales in

Europe still materially below pre-pandemic

levels, and OEMs having to navigate

regulatory requirements to increase the

mix of electric vehicle sales. This is having

a disruptive impact on the automotive

supply chain, and the OEMs are now also

facing the additional challenge of having to

keep an eye on the resilience of their dealer

networks.”

A high number of warnings were also

seen across FTSE Software and Computer

Services (seven), Travel and Leisure,

Investment Banking & Brokerage, and

Media (all with five).

Unusually, this latest surge in warnings

wasn’t preceded by a sudden economic

downturn or one-off event. This uncertainty

seemed to intensify over the summer as

companies awaited the new Chancellor’s

Autumn Budget and were also affected by

ongoing heightened geopolitical tensions.


CREDIT MANAGEMENT

Shaw Footed

SHAWBROOK Bank has reported a

significant increase in its loan and deposit

books. In a trading update, the retail

lender revealed that its loan book grew

by 18 percent year-on-year to £15.1bn,

driven by strong net lending volumes

across our core specialist real estate and

SME markets. The deposit book also rose

by 16 percent to over £15.2bn.

Cash Genie out of the bottle

PAYDAY lender Cash Genie has entered

into administration six months after

agreeing a £20 million redress package for

unfair practises with the Financial Conduct

Authority.

The collapse follows an investigation into

failings that date back to 2009 and affect

more than 90,000 customers. Poor practise

identified included loans being refinanced

or rolled over without the permission of

customers or checks on their financial

situation, and customer payments being

taken by Cash Genie after they applied for

loans from other payday loan brands run by

the same company.

The firm also admitted to failing to send

yearly statements to customers meaning

it should not have applied further fees or

interest on the loans.

The administration is being handled

by RSM who said that the business

had voluntarily entered into a solvent

liquidation meaning there is enough capital

left in the business to redress all affected

customers.

Steven Law, RSM Partners said:

“We have been working closely with Cash

Genie and its sister company and are

keen to find and pay those remaining

customers.”

Rent and mortgages rises

SPENDING on rent and mortgages

increased by 6.4 percent annually in

October, marking the highest growth

since September 2023.

Despite the increase, a survey of

2,000 people found that 55 percent

were confident their monthly rental or

mortgage outgoings were affordable, up

from 53 percent in September. However,

69 percent of renters identified property

prices as the main obstacle to home

ownership, with 60 percent concerned

about deposit costs.

Mark Arnold, Head of Mortgages and

Savings at Barclays who carried out the

research, stated: “More needs to be done

to unlock greater capacity in the market

to help drive down some of the financial

barriers facing renters and home-owners

as we look ahead to 2025.”

Good news in the housing sector

contrasts with a slowdown in the

construction sector generally. S&P

Global Market Intelligence's construction

purchasing managers' index (PMI) fell

to 54.3 from 57.2 in September. The

civil engineering subsector performed

best, driven by renewable energy

infrastructure growth (see our interview on

page 24).

Optimum acquired by

eCapital Commercial Finance

BCA shortlist

THE shortlist for the British Credit

Awards has been announced, with more

than 90 firms or individuals up for an

award across 17 categories. Among those

making the biggest impact are Sage, a

finalist in five categories, and Optimum

Finance, a finalist in three. The winners

of the BCA's will be announced at the

Awards ceremony, on the 6th February

2025, with Debt Register as headline

sponsor.

Getting onboard

EQUIFAX UK has launched a new digital

customer onboarding journey to help

certain utility and telecoms providers

automate customer eligibility assessments

for social tariff discounts, making it

simpler and easier for consumers to

apply, and helping them access discounts

and special pricing plans available for

households facing financial hardship.

Tariff Connect uses a digital application

form and Open Banking technology to

assess eligibility automatically. The firm

claims it eliminates the need for manual

documentation and cuts down the current

timeline from weeks to minutes.

Short changed

PLANS to reduce office space by 40

percent to save money and reflect new

ways of working are promoting HSBC

to relocate from its iconic Canary Wharf

base to a refurbished building on Newgate

Street, London. Management is reportedly

considering leasing additional space

nearby due to concerns about potential

shortages.

OPTIMUM SME Finance has been

acquired by eCapital Commercial Finance

Limited, a leading independent invoice

finance company with an extensive UK

presence.

Ant Persse FCICM, CEO of Optimum

SME Finance, says the acquisition represents

a pivotal moment for the business: “It

will unlock new possibilities for our

clients, introducers, and team members.

eCapital's impressive scale, combined

with the robust delivery platform we’ve

built at Optimum, will allow us to extend

even greater liquidity support to UK

SMEs.”

Importantly, Ant says, it is very much

business as usual: “We remain open, actively

supporting clients, and are as committed

as ever to helping as many UK SMEs as

possible thrive in today’s economy.’’


continues on page 8 >

THE NEWS

Car loan review could

see lenders pay billions

in compensation

THE Financial Conduct Authority

(FCA) is set to allocate £20m for the

initial phase of its investigation into

car loan commissions, a move that may

oblige lenders to compensate consumers

to the tune of £23bn.

According to a Freedom of

Information Request actioned by City

AM, the FCA has already spent more

than £14m since the start of the year on

examining discretionary commission

arrangements (DCAs) in the motor

finance sector. The review's total costs

are projected to reach £19.7m by May

2025, but this could change due to a

recent Court of Appeal ruling that

requires brokers to obtain informed

consent from customers before receiving

commissions.

Adrian Dally, Director of Motor

Finance at the Finance and Leasing

Association, warned that the ruling

could cause ‘severe disruption’ to the

industry and the UK economy. He said

that the spending marked a ‘fraction of

the costs’ lenders have incurred due to

the regulator’s work, including handling

more than two million complaints in

this year alone.

The FCA is also assessing records from

2007 to 2021, indicating the extensive

nature of the investigation.

Dally said that approximately 80

percent of new car purchases in the UK

are made using credit, with FLA members

issuing £52bn of motor finance loans

last year: “If finance isn’t available, for

most people that will mean the car

doesn’t get sold, doesn’t get delivered,” he

added.

Meanwhile, the impact of the review

is being felt throughout the credit and

lending community. Vanquis Banking

Group recently announced that it

has revised its commission disclosure

practices for its Moneybarn vehicle

finance business amid the growing

scandal. Chief executive Ian McLaughlin

stated that while commissions were

previously disclosed upon customer

request, they will now be provided

automatically by dealers.

Close Brothers has seen its shares

plummet by six percent following

concerns about its exposure to the

inquiry. The merchant bank's stock has

already lost over half its value this year.

Other lenders, including Lloyds Banking

Group and Vanquis are also exposed to

declines.

Meanwhile, new car sales in the

UK experienced a six percent decline

in October, marking only the second

decrease this year. The Society of Motor

Manufacturers and Traders (SMMT)

reported that 144,288 new passenger

cars were registered, resulting in a loss

of £350m in turnover.

While petrol and diesel sales fell

significantly, electric vehicles (EVs) saw

a remarkable increase of 24.5 percent,

capturing 20.7 percent of the market.

PKF appointed as

liquidators

INSOLVENCY Practitioners Stratford

Hamilton and James Sleight of PKF

Littlejohn Advisory have been appointed

joint liquidators of Big Help Project

Limited. The limited company is an

entity associated with the Big Help

Project charity and owned by one of

the charity trustees, a former Labour

councillor. The charity is currently being

investigated as to whether potential

misconduct or mismanagement was to

blame for significant financial losses to

the Liverpool-based organisation. The

charity commission, which has launched

an inquiry into the Big Help Project, has

expressed concern over trustee decision

making, potential unauthorised trustee

benefit, and unmanaged conflict of

interest, according to BBC reports.

Waterfall investment

IWOCA, one of Europe’s largest lenders

for small and medium enterprises (SMEs),

has secured a £200 million debt funding

package from Citi and Waterfall Asset

Management. The firm says this brings

total investment in iwoca to nearly £1.5

billion. iwoca claims it now ranks among

the UK’s top 10 fintechs by revenue

and profit, standing alongside Monzo,

Starling, and Revolut. The company’s

Annualised Revenue Rate rose to £251

million in Q3 2024 — up 62 percent yearover-year.

Wise counsel

PHILLIPS & Cohen Associates, the

deceased account care management

and technology solutions provider, has

appointed Chris Lagow as its new Global

General Counsel. In his new role, Lagow

will oversee PCA’s global legal strategy,

ensure compliance with employment

laws and regulations, and provide critical

legal guidance to support the company’s

continued expansion.


CREDIT MANAGEMENT

Mortgage woes placing

consumers under pressure

HOMEOWNER mortgages in arrears are

up eight percent year-on-year, according

to data published by UK Finance in

November, and the number of mortgage

possessions among homeowners are up 39

percent in the same period.

In terms of the detail, there were 93,630 homeowner

mortgages in arrears of 2.5 percent or more of the

outstanding balance in Q3 2024, three percent fewer than

in the previous quarter (96,090), but eight percent higher

than the same quarter in 2023 (87,010).

The number of homeowners with arrears of more than

10 percent of the outstanding balance, reached its highest

ever level of 33,070, marking a one percent increase from

the previous quarter (32,820) and a significant 13 percent

increase from the Q3 2023 (29,350).

The number of mortgage possessions on buy-to-let

properties remained unchanged from the previous quarter

but 73 percent higher than Q3 2023, while possessions for

homeowners rose by one percent in the latest quarter,

marking a 39 percent year-on-year rise.

Tom Cuppello, Director, Risk at financial services

consultancy Broadstone, warns of trouble ahead: “While

the data encouragingly points to a slight downturn in

arrears over the last quarter, the significant increases

across the past year point to the huge impact that

prolonged high interest rates are having on mortgages.

“In the months ahead, this shift is likely to bring renewed

financial challenges for many borrowers, particularly

those transitioning from fixed rates on to higher payments.

For lenders, this means preparing to support customers

through a potentially challenging period as household

budgets come under increased strain. Staying agile and

prioritising borrower support will be essential.”

The figures from UK Finance appear to be reflected in

new data from StepChange that suggests that mortgage

arrears have been steadily rising this year, with average

arrears per StepChange client now standing at £9,657, a

68 percent increase year-on-year.

Among UK adults with a mortgage, two in five (41

percent) have found it difficult to keep up with bills and

credit commitments in the last few months; one in four

(25 percent) have used credit to afford their mortgage

payments (20 percent in September 2023); and one in six

(16 percent) have used credit, loans or an overdraft to

make it through to payday. This compares to 11 percent of

the wider population.

Richard Lane, Chief Client Officer at StepChange, says

that even with a recent fall in interest rates, its clients

are still challenged: “Thousands of mortgage holders have

faced new fixed rate deals over the past year or two with

monthly payments eating up a much larger proportion of

their income. This has had a knock-on effect on people’s

ability to keep up with bills and repay other debts as they

prioritise keeping a roof over their head.

“The effect on private renters can also not be

underestimated – many landlords have passed on higher

debt servicing costs to tenants, making their rental

payments increasingly unaffordable.

“Thousands of mortgage

holders have faced new

fixed rate deals over the past

year or two with monthly

payments eating up a much

larger proportion of their

income.’’

Brave | Curious | Resilient / www.cicm.com / December 2024 / PAGE 9 continues on page 10 >

THE NEWS - CICMQ ROUNDUP

DISTINCTION

FOR IMPERIAL

The Income Team at Imperial College London has been

awarded the prestigious Distinction grade following its recent

re-accreditation for CICMQ Best Practice.

THE distinction grade following its

recent re-accreditation for CICMQ

Best Practice, recognises the team’s

continuing dedication to best practice

in credit management.

The award was presented to Gavin

Jones FCICM, Head of Income at

Imperial College London, at a special team celebration held

in its West London campus, by Iain Young FCICM(Grad),

Head of Accreditation at the CICM.

This accolade stands as testament to the entire team’s

commitment to excellence. The robust re-accreditation

process involved a comprehensive assessment of the

Income Team’s policies, procedures and performance

metrics and found strengths across all areas. In particular,

the Income Team is highly regarded for open-mindedness,

willingness to embrace change and collaborative ethos. It

was clear they take a highly structured approach to their

work, with strong reporting lines and regular KPI reviews

ensuring best practice across the board.

Another factor which shone through from the

assessment was the strength of relationships that the

Income Team enjoys with key stakeholders, a number

of who attended the award celebrations. Speaking at the

event, John Whitlow, Imperial’s Director of Financial

Services and Procurement, reflected on the value of

remaining CICMQ accredited and how positively it is

viewed across the University, and within the industry.

John also spoke about how pleased he was to see so many

of the team demonstrating such dedication to their roles,

including those who have recently achieved qualifications

through CICM or who are beginning their journey

towards it.

Gavin Jones took the opportunity to express his pride

in the team’s achievement, he said: “Being re-accredited

with distinction by CICM is a significant achievement for

our team, recognising all the hard work they’ve put in. The

process gave us a valuable opportunity to dive deep into

our processes and systems, helping us identify areas of

focus for the years ahead. The accreditation has energised

the team, which includes two new studying members, and

we’re excited to continue working with CICM to see what

we can achieve next.”

While the Income Team faces challenges ahead,

particularly with a large-scale system improvement,

these also present valuable opportunities. The CICMQ

re-accreditation confirms the team’s commitment to

best practices, positioning them excellently to continue

innovating and thriving. The CICMQ Accreditation

team wish them every success in their ongoing journey of

excellence.


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SUE CHAPPLE FCICM

CEO’s Christmas message

POSITIVE

THINKING

Credit managers are proving resilient in the face

of global challenge.

THAT was the year that was, and it

probably wasn’t quite as bad as we

might have expected!

Of course there are big challenges

in the world: the impact of ongoing

conflicts in Ukraine and the Middle

East and the uncertainty caused by elections both in the

UK and US cannot be underestimated.

But despite these events, the world has kept turning,

and our industry has proven to be steadfastly resilient.

Credit managers demonstrate time and time again their

chameleon-like tendencies, able to adapt to an everchanging

environment and emerge stronger for it.

Within the CICM it has been another busy year. The

website, which was launched 12 months ago as our flagship

digital initiative, has proven to be incredibly successful as

an essential resource and communications platform not just

for our members, but also the wider business community

in keeping with our charitable objectives.

We have also enjoyed a further increase in demand for

training which reflects a general attitude among businesses

to invest in their people and their skills. It also reflects a

focus on staff retention, ensuring organisations have the

right people in the right jobs with the right training for

them to be at their most productive and professionally

fulfilled.

The training given in relation to Credit Policy has been

especially popular, as has our training in some of the ‘softer’

skills related to credit management and collections.

It is interesting, to that end, that we seem to have lost the

skill of talking, relying too much on email and other digital

communication channels for our customer engagement.

Knowing when to talk and how to talk to customers is

an art, but with the requirements of Consumer Duty and

Know Your Customer there is a limit to what extent you

can really claim a customer ‘relationship’ without having

ever spoken to them!

Face-to-face success

The success of Credit Fest confirms my belief in the power

of face-to-face communications. Gaining new members has

always been a strength but must never be at the expense

of not seeking to recognise and continually delight our

existing members. The feedback from the nationwide

roadshow was universally positive, and very much in our

plans going forward, supporting a re-invigorated branch

network.

In the autumn we welcomed a new Board and a new Chair,

and I am looking forward to working closely with them in

the future, and indeed continuing to engage with all our

stakeholders, partners and CICMQ accredited companies

in promoting best-practice credit management.

There will be challenges; there always are. It will be

interesting to see how ‘working from home’ plays out in

2025 and beyond, for example, as more professional services

firms seek to get more people back into the office. It will

be interesting too to see how AI becomes increasingly

integral to our working lives. I know personally that I am

looking forward to 2025 with a continued sense of hope,

optimism and positivity.

There is much to be said for a positive mindset, focusing

on all that’s good with our world and not dwelling on the

bad. And in that spirit, I thank everyone across the CICM

community for their continued goodwill and support,

for it is you who make the Institute what it is today.

Merry Christmas and a happy New Year to you all.


Festive

Greetings

to all our CICM members from the

editorial and marketing team.

INSOLVENCY

APRES MOI,

LE DELUGE!

The 2024 Autumn Budget could

make or break struggling businesses.

BY ALEXANDRA DAVIES

IT is impossible to address the current

issues faced by businesses across the UK

without tackling the critical factors shaping

their future and the elephant in the room:

the autumn budget and its impact across

industries.

Throughout 2024, the UK has grappled with a substantial

increase in business insolvencies, driven by economic

challenges that include rising costs, high energy

prices, and tightening credit conditions. This uptick in

insolvencies marks a continuation of an upward trend

from previous years, particularly impacting sectors

like retail, hospitality, and construction. Companies in

these industries are experiencing high levels of financial

distress as they cope with sustained inflation, wage

pressures, and fluctuating demand.

Although inflation has begun to stabilise, the residual

effect of economic turbulence from previous years

continues to strain businesses, with many companies

struggling to manage cash flow and operational costs.

Energy costs have also been a major concern for

businesses, especially those in energy-intensive sectors.

Price spikes and overall high energy costs place pressure

on firms to pass these expenses on to consumers, reducing

demand and impacting profitability. This environment

has been especially challenging for smaller businesses,

which may have fewer resources to offset such high

costs. Additionally, tighter credit markets and elevated

interest rates further exacerbate financial constraints,

making it harder for these businesses to secure the

financing necessary for growth and operations.

Trouble to come

As Labour confirms the largest tax rise since 1993, with

tax hikes of £40 billion in the autumn budget, this is

expected to influence the trajectory of insolvencies,

especially as employers will suffer the worst with the

increase in employers’ national insurance contributions,

which are projected to raise £25 billion, along with

increases to the national minimum wage.

These measures will place further pressure on labourintensive

industries like retail and hospitality. These

tax hikes come at a time when many businesses are

already vulnerable, increasing the likelihood that some

firms might face insolvency if these costs become

unsustainable.

However, there is hope that the Government’s changes

will ultimately plug the ‘black hole’ in the UK’s finances.

Some analysts expect that policies will begin to rebuild

the UK’s economy, securing stronger growth in the

future and ending the economic stagnation that the UK

has been stuck in. The Chancellor suggested that this is

a ‘Budget for growth’, and it appears that her strategy is

to focus on longer-term infrastructure.

Looking ahead, business insolvency levels are expected

to remain high in 2025, with many firms needing to

adjust strategies, reduce costs, and explore options

like credit insurance to manage risk. The sectors most

affected are those with high fixed costs and exposure to

discretionary spending, which may see a longer-term

recovery as economic conditions gradually improve.

However, after a volatile couple of years, business

leaders will find it difficult to see past the tax rises and

the immediate effects these will have on their businesses.

Ultimately, UK businesses will need to be resilient

and adaptive. It is imperative at this stage in the UK’s

economic recovery that business leaders look ahead,

manage business risks, and take proactive rather than

reactive steps.


CREDIT MANAGEMENT

COMPANIES

IN THESE

INDUSTRIES ARE

EXPERIENCING

HIGH LEVELS

OF FINANCIAL

DISTRESS

Author: Alexandra Davies is a senior

manager in the business recovery team at

accountancy firm, Menzies LLP.


COLLECTIONS

DUTY

BOUND

With challenge comes opportunity

in the world of collections.

BY DANIEL SPENCELEY


CREDIT MANAGEMENT

AN early election and new

Government. The final

implementation deadline for

Consumer Duty. Controversial

proposals to make enforcement

investigations public. Plans for

the biggest overhaul in regulatory

reporting in decades. It’s fair to say that 2024 has kept the

credit and collections industry on its toes.

And many of 2024’s challenges will follow us into 2025.

The implications of the change in Government are still

becoming clear and Consumer Duty will continue to

challenge firms, especially as the regulator gives industry

more of an idea what it expects to see.

While the Financial Conduct Authority (FCA) may have

acknowledged the criticism it received on its enforcement

proposals, it is still planning to consult before the end

of the year on revised proposals. And many firms will be

getting underway with preparations for the changes to

regulatory reporting, with some firms required to be ready

by mid-2025.

2024 HAS

KEPT THE

CREDIT AND

COLLECTIONS

INDUSTRY ON

ITS TOES.

Threading the needle

A new Government heavily focused on growth will need to

begin showing signs of delivering on that promise sooner

rather than later. The new Chancellor faces significant

pressure to thread the needle of establishing a growth

agenda while also managing the challenging state of the

public finances. What this will look like for financial

services, and specifically collections and purchase, remains

to be seen.

However it shakes out, it will be important that the

Chancellor takes measures that enhance the appetite for

much-needed investment into the sector, to ensure that

UK financial services remain innovative and competitive.

Rising compliance costs and uncertainty about post-

Consumer Duty regulatory intervention make for a more

challenging back-drop.

Headline announcements about recovering millions

lost to fraud during the pandemic, and enhancing the

identification and recovery of benefit overpayments

suggest that this Government will have additional need of

Credit Service Association (CSA) members’ skills in the

coming year.

The collections and purchase industry plays an important

role in the financial services ecosystem – providing

cost-effective expertise for creditors, especially when it

comes to identifying and supporting the most vulnerable;

enabling lenders to improve their own capital positions

and make new credit available; and delivering essential

support and forbearance to customers. It would be a good

time for the Government to recognise just how valuable a

role it plays and support the sector by ensuring compliance

costs and regulatory intervention are proportionate.


COLLECTIONS

Put to the test

On the regulatory side, the credit industry has gone to great

lengths to integrate the Consumer Duty into their operations

and those efforts will inevitably be put to the test in the coming

year as the FCA examines firms’ implementation efforts more

closely. We can expect to see more from the regulator about what

the Duty actually means in practice, including examples of good

and bad practice, and it will be incumbent on firms to pay close

attention to what the regulator says and, where appropriate, to

act on it.

Reports from CSA members indicate that they faced more FCA

data requests in 2024 than they had since the FCA first took

on the regulation of consumer credit in 2014. Some of this has

been driven by the fact that the industry has been caught in the

regulatory crosshairs of various FCA projects (the review of the

vulnerability guidance; the implementation of the Consumer

Duty). But some of this is also likely part of the regulator’s

preparations to produce a debt purchase and collections

portfolio letter in the new year, where it will set out its priorities

and concerns for the sector. When that lands, the content will

undoubtedly play a big role in both members’ and the CSA’s 2025

priorities.

Earlier this year, we hosted a workshop for members on the FCA’s

new Product Sales Data requirements, new rules which will

significantly change regulatory reporting for firms within scope.

The data that in-scope firms are going to have to collate and

provide to the FCA is on an overwhelming scale, with millions,

potentially billions, of records across the financial services sector

being reported to the FCA, so getting an early start could be

critical. The changes present a logistical and technical challenge

for both the FCA and firms but, helpfully, the FCA has informed

firms that it will provide testing capabilities so that firms can be

assured that they are set up for the new requirements. Firms will

want to keep their eyes peeled for updates on that.

On the radar

While many of us may be hoping for a quiet January, a recent

update from the FCA’s Director of Enforcement, Therese

Chambers, suggests that we may be spending the pre— and

post—holiday period looking at revised FCA proposals on

publicising enforcement investigations.

In a September speech, Chambers noted that the FCA would be

consulting further on the subject in Autumn 2024. The original

proposals were justifiably criticised by industry and Government,

with the Lords’ Financial Services Regulation Committee even

driven to launch an inquiry. Industry will be eager to see that

the FCA has listened, as Chambers claimed in her speech. At the

time of writing, the consultation is yet to appear, but the speech

gave an impression that the revised proposals would contain a

tougher public interest test.

We’re also anticipating seeing some movement on a few

Government—led projects which were put on hold as a result of

the election, such as the review of personal insolvency, revisions

THE NEW

CHANCELLOR

FACES

SIGNIFICANT

PRESSURE TO

THREAD THE

NEEDLE OF

ESTABLISHING

A GROWTH

AGENDA…

...WHILE ALSO

MANAGING THE

CHALLENGING

STATE OF

THE PUBLIC

FINANCES.


CREDIT MANAGEMENT

to data protection law, and the publication of claimant

names in the Register of Judgments, Orders and Fines.

Given that these topics pre-date the new Government,

it is unclear what could change as and when they are

picked back up, but each could have ramifications for

CSA members and the wider industry in the coming

year. We’ll be monitoring developments closely.

Progress is expected in the FCA’s work in the credit

information market in the new year. The FCA plans

to publish proposals to change credit reporting rules,

making it mandatory to report to all three credit

reference agencies. On top of that, the interim working

group, which has been tasked this year with making

recommendations for the creation of a new credit

reporting governance body, will also publish its final

report, which will kickstart the process for the move to

a new governance structure. So, in 2025, we could see,

not just changes to the rules on reporting to the Credit

Reference Agencies (CRA's), but also the creation of a

new credit reporting governance body. The impact of

those changes is likely to be much felt far beyond 2025.

Key campaigns

Beyond our reactive work, we’ll be working with

members and stakeholders to progress some of our

key campaigns. As promised in our Tackling the

Engagement Gap report, we want to revisit and build

on our #heretohelp campaign, continuing our work to

highlight the importance of customer engagement in

debt resolution. Separately, with credit information

reform on the agenda, it is an opportune moment for

the industry to deliver credit information records that

better reflect a customer’s commitment to repaying

their arrears, rather than the current approach that

declares customers simply as ‘defaulted’ for six years,

whether they are paying or not.

We will continue to challenge Government and

regulators on the ever—rising cost of compliance and

regulation, which risks stifling innovation, growth

and inward investment. In particular, we’d like to see

more scrutiny of the impact regulatory costs can have

in terms of inhibiting competition and innovation,

especially under a Government that has identified

economic growth as its North Star. We would also

welcome a more proportionate approach to regulatory

change, with cost benefit analyses giving consideration

to the cost and impact on firms of simultaneous

regulatory change, which has become more and more

frequent.

In my experience, the impact of these complaints is

felt throughout the industry, baffling and irritating

everyone from chief executives down to frontline

agents. People respond in this way not just because

the letters are routinely nonsensical, citing everything

from US law to maritime law, but because they cause

very real and very avoidable harm to the vast majority

of customers that use them, either by prolonging

the impact of non-payment or by leaving creditors

with little recourse other than enforcement. As we

discussed in our 2024 paper, Tackling the Engagement

Gap, use of these strategies is often just another form

of disengagement and finding ways to engage (or

re-engage) these customers is critical. We plan to

explore both the challenges and potential solutions.

In 2024, artificial intelligence (AI) has grabbed all the

headlines, and it will be even more firmly on the radar

in the coming year, as more and more firms adopt the

technology across their businesses. This year has seen

all manner of suppliers finding ways to utilise the

technology, with varying degrees of success. Its place

in search and content creation/enhancement is already

becoming widely-adopted, but 2025 will perhaps see

some of the other long—term BAU applications of AI

(and the associated suppliers) begin to emerge more

prominently. The applications that stand the test of

time are likely to be the applications that are reliable,

have been adopted widely and are genuinely costcutting.

A year in policy

Even with more than a decade in the industry, I can

safely say that this has been one of the busiest years

I’ve known, with all manner of political and regulatory

turbulence for the industry to weather. But with

challenge comes opportunity, and the chance to

demonstrate our resilience.

However, as it’s the festive time of year, it really would

be very welcome if Santa could see to it that we have a

consultation—free Christmas.

Daniel Spenceley is Head of Policy at

the Credit Services Association (CSA).

Some early 2025 policy work will involve a closer look

at public sector debt and the alleged gap in private and

public sector practices. We are also planning to dig

into a perennial industry challenge — vexatious and

template complaints.


THURSDAY 6 FEBRUARY 2025

THE ROYAL LANCASTER, LONDON

BOOK YOUR TABLE

If you require any assistance with your booking or would like

to discuss the package options further please contact Rushna Khan at

Rushna.khan@incisivemedia.com or via 020 7484 9843

PLATINUM PACKAGE

• One finalist logo with your shortlisted

category and license

• One finalist social media tile with

company logo

• Company logo on awards website,

displayed on the big screen, back page

of the programme and on lightbox

• Table of 10 premium position

including: Three-course meal, bubbles

on arrival, five bottles of wine, tea &

coffee with petit fours, after dinner

liquors and mineral water.

GOLD PACKAGE

• Table of 10 including: Three-course

meal, bubbles on arrival, magnum

of champagne, five bottles of wine,

tea & coffee with petit fours, after

dinner liquors and mineral water.

£5,995.00 +VAT

£5,445.00 +VAT

To find out about the exceptional range of sponsorship opportunities available at the CICM British Credit Awards

please contact Will Bolton to request a copy of our full sponsorship information pack.

Will Bolton – Business Development Manager | T: +44 (0)207 484 9796 | E: will.bolton@incisivemedia.com

THE 2025

FINALISTS

B2B TEAM OF THE YEAR

AWARD - PRIVATE SECTOR

TEAM EXCELLENCE

• Anixter Ltd t/a Wesco Anixter

• Optimum SME Finance Ltd

• Sage UK

• Technology Services Group

Limited

• Winterhalter Ltd

• Zurich Insurance

B2C TEAM OF THE

YEAR AWARD

• ARC (Europe) Ltd

• Bill Gosling Outsourcing

Octopus Energy Team

• Global Debt Recoveries

• United Utilities Water Ltd

BEST USE OF

TECHNOLOGY AWARD

• British Gas and EXUS

• My DSO Manager

• Novuna Business Cash Flow

• Optimum SME Finance Ltd

• Saint-Gobain Limited

• Turnbull & Co Limited

•

CREDIT PROFESSIONAL

OF THE YEAR AWARD

• Christoforos Christofi

(GT Gettaxi (UK) Limited)

• Danielle Duke MCICM

(Utiliita Energy Limited)

• Emma Reilly FCICM

(Top Service Ltd)

• Joshua Mayhew MCICM

(Global Credit Recoveries)

• Rosie Fitzsimons MCICM

(Saint-Gobain Ltd)

• Tina Daulton

(Biffa Waste Services Ltd)

DEBT COLLECTION

AGENCY AWARD

• ARC (Europe) Ltd

• Ardent Credit Services Ltd

• Axis Professional

• Bill Gosling Outsourcing

• Brachers LLP

• STA International

• ZZPS Limited

DIVERSITY, EQUALITY

& INCLUSION PROJECT

AWARD

• Apex Litigation Finance Ltd

• Brabners LLP

• Hays Specialist Recruitment Ltd

• Sage UK Ltd

ENFORCEMENT BUSINESS

OF YEAR AWARD

• Announced on the night

GLOBAL CREDIT AWARD

• Atradius

• EMEA O2C Team at Sage

• Global Credit Recoveries Ltd.

INNOVATION IN CREDIT

AWARD

• Biffa Waste Services Ltd

• Debt Register Limited

• EMEA O2C Team at Sage

• Cedar Rose

• My DSO Manager

• O2C Laboratory Ltd

LEGAL SERVICES

PROVIDER OF THE

YEAR AWARD

• Brachers LLP

• DWF Law LLP

• Harwood & Co

• Pannone Corporate LLP

• Spencer West LLP

• Zakia Khalid Freelance Solicitor

OUTSTANDING

CONTRIBUTION TO

THE INDUSTRY

• Atul Vadher FCICM, SEFE Energy

• Dawn Chadwick MCICM(Grad),

Stepchange

• Jon Swan FCICM, Credit

Management Solutions Ltd

• Steven Barr, Sage Global Ltd

• Tina Daulton FCICM, Biffa Waste

Services Ltd

RISING STAR AWARD

• Amy Horgan, Winterhalter Ltd

• Emma Homewood, ZZPS

Limited

• Josh Webber, EDF

• Kavin Stavert ACICM, Charlotte

Tilbury Limited

• Milly Rodman, Brabners LLP

• Savanna Smith, Optimum SME

Finance Ltd

RISK MANAGEMENT

AWARD

• Cedar Rose

• Company Watch

• GT Gettaxi (UK) Limited

• identeco Business Support

Toolkit

• O2C Laboratory Ltd

• SEFE Energy Ltd.

SUPPLIER OF THE

YEAR AWARD

• Auquan

• Cedar Rose

• Chaser

• Company Watch

• My DSO Manager

• TCN.Inc

SUPPORTING THE

COMMUNITY AWARD

• Anixter Ltd. - Credit Team

• Biffa Waste Services - Shared

Services Team

• CTCC Solutions Ltd

• Global Credit Recoveries

• Saint-Gobain Limited

TEAM PLAYER OF THE

YEAR AWARD

• Darren Fowkes MCICM, Biffa

Waste Services Ltd

• Louise Goller, Winterhalter Ltd

• Matthew Jones, EDF

• Maureen Sleigh, EH Smith

(Builders Merchants) Ltd

• Sarah Pratt, EDF

TECHNOLOGY

DEVELOPMENT AWARD

• Atradius Collections Limited

• Biffa Waste Services Ltd

• Cedar Rose

• CoCredo

• Controlaccount

• My DSO Manager

• PayDrive Solutions Limited

COLLECTIONS

FAIR PLAY

Empathetic collections need to be adopted by all.

BY DAVID SHERIDAN FCICM

CUSTOMER expectations regarding

firms handling of their needs don’t

stop because they are being pursued

by a debt collector. In fact, they are

heightened because the likelihood

is that customers who are being

contacted by a debt collector are most

probably in a vulnerable situation and in financial distress

that firms like ours have responsibilities to identify and

support.

This year has seen a number of developments within

our business that are focused on enhancing the support

and tools we provide all our customers in resolving their

accounts. These are a mix of technology-related initiatives

and operational enhancements that are helping agencies

like ours to deliver a better-quality experience to our

customers.

This includes the introduction of flexible and accessible

payment methods for our customers in managing their

account online (Google/Apple pay) and an enhanced

website that provides increased functionality for our

customers. As with some others in our sector, we are

also exploring AI and how it can be introduced to our

customer facing services.

Experience and outcomes

We fundamentally believe that improving customer

experience will lead to better outcomes for all stakeholders.

However, increased compliance comes at a cost, and the

investment required is a concern. We also have to address

the rise in National Insurance brought about by the

new budget. These are costs that hit the bottom line. All

will have to be accommodated and that will mean some

businesses will need to cut their cloth accordingly.

What those actions will look like, will vary by business

and the underlying profitability. That said, traditional

contingency debt collection businesses are not hugely

profitable. When commencing activities for new clients,

business like ours invest significant resources to meet

clients expectations and requirements. The commercial

model usually means that it can take in many cases well

over a year before any profitable returns are made.

Not many folks will bemoan a drop in debt collection

agency margins, but firms trying to do the right thing by

customers and investing in empathetic and supportive

collection practices that put customers first need to be

supported.

It is disappointing that the constant regulator interventions

do nothing to highlight good practice in the regulated

consumer debt recovery sector, and heavily focus on their

expectations of firms. I do appreciate the regulator has a

duty to ensure markets work for customers, but I have yet

to see positive reflections of any debt recovery practices

by the private sector.

Contrast our industry’s approach to the heavy-handed

tactics adopted in the pursuit of public debt as illustrated

by Martin Lewis’ campaign on changing Council Tax

Collection Practices. As he is quoted as saying: ‘‘Council

Tax debt collection is so aggressive, it would make banks

blush.’’ These are practices that if found in my sector

would potentially close the business. Why is the regulator

and Government allowing this to continue?

Positive feedback

We, like many firms in the regulated sector, can evidence

very powerful customer feedback that recognises the

support given to them and the care taken by our agents.

One said: ‘I've never been in debt before but know people

who have and the stories I've heard about debt collectors

have been awful. So when I got into debt, I was scared

because I was unsure of what was going to happen. But

ARC has been so kind and helpful it's unbelievable, so

thank you so much. You have really created a new image

for debt collectors.’

In fact, reviewing all customer feedback in the past few

months, the wordcloud is populated with words such as

‘polite’, ‘friendly’, and ‘helpful’. We value this feedback

since it underpins our commitment to helping customers

resolve their account and reflects our Google rating which

currently stands at 4.1.

In short, it is promoting a more empathetic collection

approach that is providing customers with a supportive

experience when engaging with us. With the appointment


CREDIT MANAGEMENT

Recognising that financial challenges can sometimes

create barriers for our customers, we’re committed to

making communication as clear and accessible as possible.

To achieve this, we’ve implemented a Plain Language

Pledge for all written communications. This isn’t just for

customers identified as vulnerable—it’s for everyone. By

ensuring that our communications are easily understood

by all, we aim to support customers in navigating their

options and managing their accounts with confidence and

clarity.

Genuine support

Our focus is on more than just collection; it’s on flexibility

and genuine support. This approach includes actions

such as pausing collection activity, providing referrals to

external support services, creating manageable payment

plans, and even gathering evidence to consider write-offs.

We’re breaking the stigma that debt collection is purely

about balance recovery—it’s about working collaboratively

with each customer to find sustainable solutions.

In addition, we’ve enhanced our complaint handling

processes to better respond when things go wrong. With

senior managers overseeing key performance metrics,

we’ve introduced Service Level Agreements (SLAs) that

set specific targets for complaint resolution, prioritise

responses for vulnerable customers, and fast-track cases

where customers report significant detriment. This

proactive approach not only meets but exceeds regulatory

standards, emphasising our commitment to customer care

by prioritising their needs and taking prompt corrective

action where needed.

Together, these changes reflect our dedication to Consumer

Duty. We’re not just following regulatory requirements;

like many of our professional contemporaries in consumer

collections we’re actively building a framework of

empathy, transparency, and support that empowers our

customers and reinforces trust in every interaction.

of a senior manager as a ‘Consumer Champion’ within

our business, this has led to a full time focus on customer

journey mapping and testing to measure and evolve our

compliance in putting customers first.

In terms of our own business, we have established a

vulnerable customer committee that is supported by

enhanced Management Information to assess the nature

and status of vulnerable customers we have under

management. This has led to even greater scrutiny of

our servicing strategies and resulted in a number of

enhancements to boost support for vulnerable customers.

This includes a more tailored and supportive contact

strategy for our vulnerable customers to ensure they are

supported in moving forward with their account.

Ahead to 2025

I believe our industry will go from strength to strength in

adopting empathetic and supportive collection practices.

These will, I believe, lead to better levels of engagement

and support offered to customers supported by continued

technology enhancements. I also believe that AI and

its impact within customer facing roles will start to be

evidenced.

Compliance and taxation will increase operational costs,

but I’d like to think firms like ours who are committed

to invest in people, systems and practices will be able to

navigate these challenges. I also think that there will be

an overall alignment to this approach when it comes to

unregulated collection practices. The impact of empathetic

debt recovery practices can’t be ignored and the ongoing

pressure and scrutiny on the lack of this approach will

drive help to drive change where it is needed most.

Author: David Sheridan FCICM. Operations Director at ARC

Europe Ltd.


INTERVIEW

TALKING

TIME

Sean Feast FCICM speaks to

Alasdair Reisner about civil

engineering, journalism, and

the joy of repairing watches.


CREDIT MANAGEMENT

ALASDAIR Reisner never set

out to work in the construction

industry. As Chief Executive

of the Civil Engineering

Contractors Association (CECA)

he heads up one of the industry’s

most important trade bodies,

representing a large majority of those companies who

work day-to-day to deliver, upgrade and maintain the

country’s infrastructure.

Even his arrival at CECA was something of a fluke: “I was

looking to join a different association and went to CECA

for a chat about what it was like to work for an association

generally and they said, ‘why don’t you come and work for

us?’. I never went to the other association in the end, and

I’m not even convinced I was invited for interview, but by

then it was a moot point anyway.”

Young offenders

Originally from the North East, Alasdair’s mother was a

primary school teacher and his father worked in a remand

centre for young offenders. He particularly remembers an

occasion being off sick from school and having to be taken

to work by his dad: “I quickly learned the best technique

for breaking into cars,” he laughs.

With a degree in Biomedical Sciences from the University

of Glasgow, a career as a virologist beckoned, but Alasdair

decided on another path. Having written various gig

reviews while at university, and enjoying it, he looked at a

post-grad course in Journalism at City University: “I was

one of those kids who read a great deal, and my bed was

virtually propped up by magazines.

“While studying I was given work experience at

Construction News, and though I wasn’t especially

interested in construction, the publishing group – EMAP

– had a huge range of other magazines like FHM, GQ

and Empire and so I could see that journalism could be

an exciting future. This was also before the days of the

internet, and no-one had grasped what that was going to

mean for the world of magazines.”

Alasdair’s experience at EMAP coincided with the dot.

com crash: “I was supposed to go back to finish off my

post-grad but thought I could either go back there, qualify,

and hope for the best, or have a job right now that pays me

money at a time when the world is falling down around

our ears. I opted for the latter.”

Exciting times

It proved a serendipitous choice: “I don’t think it was ever

my intention to stay at Construction News for very long

but as anyone in the construction industry will tell you,

once you're in you realise how brilliant it is. I've made so

many friends and met many brilliant, insightful people

doing funky, exciting stuff from design through to policy.

It may be a cliché to say that every day is different, but in

the construction industry it really is.”



INTERVIEW

Rising through the ranks at Construction News, Alasdair

was Deputy News Editor at the time of the collapse of

Northern Rock in 2008 at which point he began to

consider his options: “Magazine publishing is primarily

advertising led and the first thing that happens in a crisis

is that firms pull their advertising spend. The outlook

was pretty challenging, and so I began looking at other

opportunities.”

He joined CECA as Head of Industry Affairs and describes

it as a baptism of fire: “Doors were always opened for me

and I learned a great deal about our industry very quickly,”

he says.

Initially engaged in industry research, Alasdair identified

the key commercial issues that CECA members were

facing, especially around procurement, happily bringing

both his learned skills as a journalist and as a scientist

to bear: “It may sound a little pompous but having a

scientific background means that I am always analysing

and evaluating evidence before I am convinced of a case

to do something, and then as a journalist you learn to be

an extrovert even when it’s not an innate capability. That

means you are not afraid to ask questions and seek to

communicate things in a language that people understand.

“I am not a civil engineer,” he continues, “and if you asked

me how to project manage a civil engineering project,

I would be clueless but what I am hopefully good at is

understanding the nature of the industry and the people

who work in it, what their challenges are, and how we can

work collectively to resolve them.”

“MAGAZINE

PUBLISHING

IS PRIMARILY

ADVERTISING

LED AND THE

FIRST THING

THAT HAPPENS

IN A CRISIS IS

THAT FIRMS

PULL THEIR

ADVERTISING

SPEND.’’

Raising the profile

After three years in the role Alasdair was promoted to

Director of External Affairs, getting actively involved in

reshaping and rebranding the organisation and elevating

its visibility, especially among political stakeholders.

“Historically, I think as an organisation we had been

more focused on the technical side of things whereas the

demand from members was more focused around how can

you help us to grow the size of the market.

“At the time civil engineering was a sleepy backwater

of the construction industry whereas as we saw in the

October budget, infrastructure is now at the forefront

of Government thinking. We weren't the only reason for

that, but I would like to think that we were part of the

conversation that raised the profile of infrastructure to

those in Whitehall and the devolved bodies.”

In April 2014, Alasdair was appointed Chief Executive,

leading from the front. One of his proudest achievements

at CECA was his role in arranging a ‘meet the buyer’ style

conference in Birmingham that brought together more

than 800 people in a single day to discuss the delivery of


CREDIT MANAGEMENT

Serious challenge

Looking forward, CECA and its members face a series

of challenges, not least a shortage of skilled labour and

rising costs: “Had we managed to get more people into

the industry then some of the challenges we’ve seen on

projects relating to costs could have been mitigated,” he

says, “but then there is nothing we could do about the

war in Ukraine or unrest in the Middle East. Brexit didn’t

help because it limited the migrant labour from Eastern

Europe. That’s not a political point, it’s just an honest

reflection of what happened.”

While acknowledging that the construction industry does

suffer its fair share of insolvencies, and perhaps more than

its fair share, Alasdair believes the negative publicity is

not always warranted: “When you have so many businesses

in an industry, there are many more to fail,” he says.

He does acknowledge, however, that there are pressures.

Fixed price contracts work when inflation is negligible

and interest rates are low, and businesses are prepared to

take the risk. When the environment become less benign,

and impacted by global events beyond their control, such

contracts can prove disastrous when the risk is not suitably

spread, or the business does not have the cash flow to trade

through a difficult period when projects may be delayed.

HS2. The purpose was not only to help CECA members,

but also encourage greater collaboration across the entire

industry.

HS2, along with Crossrail, are emotive projects, and

Alasdair doesn’t pretend that the industry has got

everything right. With HS2 in particular, he believes that

the Government and industry need to hold up their hands

and admit that it became a scheme to pursue ‘at any cost’.

“That’s not to say that we did anything that was

inappropriate,” he explains. “We gave the right advice at

the right time, but I think collectively we didn’t challenge

the idea sufficiently in the first place in terms of the issues

it would resolve. The need to minimise the impact of the

scheme drove decisions that we now know didn’t make

financial sense, and perhaps we should have picked our

battles early on rather than throwing billions of pounds

into a project that potentially won’t please anyone.

“With future projects,” he continues, “we need to know

that what we are building will deliver the best possible

outcome for the public to the extent that they look at

what we have done and say that they want more. That’s

not about chasing the biggest possible pipeline for future

work; yes it’s good that our members are making money

but it’s about the end user being staggered and delighted

with our work.”

COVID, ironically, did not affect the industry to the

degree that other sectors were impacted. It also led to

various safety protocols being re-written to such an extent

that an individual working on a construction site was safer

than a person walking along the pavement. Product supply

was an issue to an extent, but with the roads free of traffic,

speed of delivery was accelerated.

HS2, ALONG

WITH CROSSRAIL,

ARE EMOTIVE

PROJECTS, AND

ALASDAIR DOESN’T

PRETEND THAT

THE INDUSTRY HAS

GOT EVERYTHING

RIGHT.



INTERVIEW

One of the ongoing challenges the industry faces is one of

culture and breaking with the bad habits of the past. Those

in senior positions today, and many of their successors,

were brought up in an environment when interest rates

were high and hanging onto cash was a sensible thing to

do. Squeezing suppliers, and squeezing them some more,

was also standard practice, as was turning the screw on

customers when contracts allowed them the latitude to do

so. Unfortunately, some of these attitudes still prevail, and

Alasdair says they are not helpful:

“Many smaller businesses fail when they find themselves on

the wrong side of a dispute and don’t have the cash reserves

to see them through,” he explains. “They might be a £5m

turnover business that is £1m short because a customer

has decided not to pay but they can’t afford to go through

the courts and end up recovering only a fraction of what

they are owed. “Any adversarial commercial environment

is poor for our industry and its long-term sustainability,”

he adds.

Cashflow management

Another challenge, especially for smaller players, is a lack

of commercial management: “Many go into construction

because they started on the tools, but no-one has taught

them how to manage a business,” he explains.

“It means they don’t know or don’t understand the risks

they may be taking on. One of the projects we have on the

go at the moment is unpicking some of the reasons why

businesses fail and working with partners who can provide

the authoritative advice to help avoid them from stepping

on any landmines.”

With the appointment of a new Government, Alasdair is

confident that civil engineers will be busy for many years

to come, but that the scale of the projects may change: “I

think there will be a higher number of smaller projects

coming through that matter to local communities,” he says.

While Alasdair loves his job, he also has two other

passions: his family and his watches. His youngest son is

a keen rugby player and his eldest a footballer, Alasdair

managing his local team – a role he is delighted is coming

to an end. In terms of his obsession with repairing watches,

he admits to owning ‘several hundred’, and has a favourite

brand called Tegrov: “It sounds Russian but is in fact a

Swiss manufacturer from the 1970s that no-one has ever

heard of,” he laughs, “and they’re really cheap.

“It keeps me busy when I’m not working, and it keeps me

out of mischief.”

“MANY GO INTO

CONSTRUCTION

BECAUSE THEY

STARTED ON

THE TOOLS, BUT

NO-ONE HAS

TAUGHT THEM

HOW TO MANAGE

A BUSINESS.”


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COUNTRY FOCUS

on Algeria

ROCK THE

KASBAH?

Algeria is a country with a past and a future


CREDIT MANAGEMENT

ALGERIA is not a country that is on

the tip of many tongues. However,

it’s a country worth noting for a

number of reasons as we shall soon

see.

Home to a number of UNESCO

World Heritage Sites including the Kasbah of Algiers (a

fortified citadel), Tassili n’Ajjer (a sandstone plateau that

contains with over 15,000 rock paintings and carvings made

before the birth of Christ), dates, and the Algerian camel

calvary, Algeria has much of interest.

It’s also noteworthy for its history: It’s been ruled over by

groups that include the Carthaginians (600BC), Berbers

(2nd century BC), German Vandals (429), various Berber

kingdoms (927-1557), the Spanish (1509-19), and the French

(1830-1962). During its time it’s been involved in the First

Punic War, Byzantine conquest (533-534), the French-

Algerian War (1681-88), the Second Barbary War (1815), the

Algerian War of Independence (1954-62), and the Algerian

Civil War (1991-2002).

At a crossroads

Algeria has seen action because it’s at the crossroads of

numerous cultures and civilisations sitting, as it does, at the

north of Africa.

It’s bounded by the Mediterranean to the north, Tunisia

and Libya to the west, Niger and Mali to the south, and

Mauritania, the Western Sahara and Morocco to the west.

Its coastline of 998 km is far less than its borders with its

neighbours which measures a combined 6,734 km (CIA

World Factbook).

x Ghardaïa is the capital city of Ghardaïa Province, Algeria.

The commune of Ghardaïa has a population of 93,423 according to the 2008

census, up from 87,599 in 1998, with an annual growth rate of 0.7 percent.

It is located in northern-central Algeria in the Sahara and lies along the left

bank of the Wadi Mzab.

Notably, Algeria, formally the People’s Democratic Republic

of Algeria, is the single largest country in Africa and the 10th

largest globally. Its area encompasses some 2.38m km2 and

sits behind Kazakhstan (2.72m km2) and India (3.28m km2).

The UK, in comparison, with ‘just’ 244,376 km2, is a minnow;

the CIA World Factbook describes Algeria as being slightly

less that 3.5 times the size of Texas.

But while Algeria is large, much of it is taken by the Algerian

Desert which itself is part of the Sahara. However, it’s more

than desert according to earth-site.co.uk – it describes the

country as ‘a land of diverse and breathtaking landscapes.

From the majestic Atlas Mountains to the vast expanse of the

Sahara Desert, Algeria’s terrain is as varied as it is beautiful’.

In essence, though, the terrain and topography of Algeria

have a significant impact on its climate: The coastal areas

have a Mediterranean climate with land that is fertile,

while the mountainous regions have a cooler climate. The

Sahara Desert, which covers most of the southern part of the

country, is unsurprisingly hot and arid.


COUNTRY FOCUS

Northern demographic

As for population, given the combination of climate and

terrain most live in the north of the country and close –

within around 80km – of the Mediterranean.

Data from citypopulation.de for 2008, using information

from Office National des Statistiques de l’Algérie,

lists a population of some 34m people. It predicted a

population of 43.42m by 2019, a figure that isn’t far off

that detailed by the World Bank – 44.9m – for 2022.

Looking at where the population resides, citypopulation.

de for 2008 - there is no more up to date data – states

that there were (then) 40 cities and towns with more

than 100,000 inhabitants of which the capital Algiers

was the largest (2.36m people), followed by Oran

(803,329), Constantine (448,028), Annaba (342,703) and

Blida (331,779).

Moving down the scale, there were 48 cities and towns

with between 50,000 and 99,999 residents.

Other data for Algeria from the World Bank is

interesting: The fertility rate has dropped from around

an average of 7.5 births per woman in 1960 to nearer

three in 2020. The rural population has stayed stable over

the same period at between 8m (1960), 12m (1995) and

11m 2020. However, the urban population has taken a

decent 45-degree growth path up from 3.5m in 1960 to

33.5m in 2022.

The population pyramid shows a young country with

reasonably balanced groups of the sexes. The pyramid is

very wide between ages 0 and 14, narrows, but expands

again from 24 until 40. From there on up it’s an even

narrowing to around 78 when it tails off sharply.

Algeria does not look overly diverse and indeed, the CIA

World Factbook reckons that the country is 99 percent

Arab-Amazigh and less than one percent European. It

adds that ‘although almost all Algerians are Amazigh in

origin and not Arab, only a minority identify themselves

as primarily Amazigh, about 15 percent of the total

population; these people live mostly in the mountainous

region of Kabylie east of Algiers and in several other

communities; the Amazigh are also Muslim but

identify with their Amazigh rather than Arab cultural

heritage; some Amazigh have long agitated, sometimes

violently, for autonomy; the Government is unlikely to

grant autonomy but has officially recognised Amazigh

languages and introduced them into public schools’.

As for languages spoken, algeria.com gives the official

language as Arabic which is spoken by an estimated 81

percent of the population. More recently, Berber has

become recognised as another national language. French,

despite the colonial history of Algeria, has no official

status in the country. While a large majority of the

population can understand the language, it is estimated

that only about 20 percent can read and write it.

Algeria


CREDIT MANAGEMENT

x The Maqam Echahid is a concrete monument

commemorating the Algerian War. The monument

was opened in 1982, on the 20th anniversary of

Algeria's independence. It is fashioned in the shape of

three standing palm leaves, which shelter the ‘Eternal

Flame’ under it.

It should be said that Algerian Arabic is somewhat

different to the Arabic commonly spoken in other

parts of the world as it’s been greatly influenced by

Berber, Turkish and French from which it has many

borrowed words. It also has a much more simplified

vowel system.

Healthy economy

As for the size of the Algerian economy, it’s fair to

say that equal to its geographical size, it’s large. And

given its diminutive population in comparison to its

landmass, it’s surprising that the economy is placed

globally in 50th place by the IMF in 2024 with a GDP

of $266.78bn – just behind Peru ($282.45bn) but ahead

of Iraq ($265.89bn). Its growth has, barring two drops,

been considerable – especially given that GDP stood

at $54.79bn in 2000. Average growth rate – according

to FocusEconomics – was 1.9 percent in the decade

to 2022 which is a gnat’s hair below the two percent

average for the middle east and north Africa.

But where the numbers get interesting are when we

consider African economies as a whole – Algeria is

placed third behind Egypt ($347.59bn) and South

Africa (£373.23bn).

Inflation over the last 10 years has been traditionally

quite high with peaks in July 2016 and February 2017

of 8.1 percent followed by a low of 0.1 percent in June

2019. It rose a little, but COVID kept it at around two

percent until the start of 2021 when, like many global

economies, it rose to a June 2022 high of 10.8 percent.

Staying high until November 2023, it’s now sitting at

4.89 percent (August 2024).

Business sectors

AGRICULTURE

The UK Government – along with the US Government

– identifies agriculture as an important business sector,

not least because Algeria occupies a large area, and has

– excluding the desert areas – a decent climate and

reasonable water table. Also, investment in agriculture

is a key part of the Government’s plans to diversify the

Algerian economy.

Euronews wrote, in June 2022, about how ‘Algeria

galvanised its agricultural sector’, ‘has set out to

cultivate the desert’, and that now ‘hundreds of

thousand hectares of land are now in economically

active in the Algerian Sahara’.

And it’s done this because the country is seeking to

harness the year-round sunshine to grow, among things,

potatoes, tomatoes, peanuts and onions. Notably, the

report details how farmers are connected to electricity

and are using modern tech to save on water. It’s also

interesting that the UN reckons that the country has

the lowest malnutrition rate in Africa and wants to

improve exports.

The US, using 2018 data, says that the sector contributes

12.3 percent to Algeria’s GDP and employs 20 percent

of the population in rural areas. Algeria has 8.5m,

and growing, hectares of arable land. Overall, market

opportunities exist in the dairy industry, animal

genetics, planting seeds, processing industry, as well as

in distribution chains.

INDUSTRY

Algeria is currently dominated by hydrocarbons,

namely oil and natural gas. However, the Government

is looking to diversify the economy for two reasons –

to offset the recent ‘low’ price of oil and because the

world is moving away from use of oil-related products.

The fastest-growing industrial segments in the second

quarter of 2018 were wood, paper and cork (10.1

percent), followed by water and energy (8.2 percent),

and agro-industry (3.7 percent). Those figures will no

doubt have changed in the intervening six years.

On mining, the US Geological Survey’s 2019 Minerals

Yearbook highlights that apart from hydrocarbons,

Algeria exported industrial mineral commodities,

such as ammonia, cement, helium, phosphate rock,

and urea. It also accounted for nearly nine percent

of reported world production, excluding China, of

helium; the country holds 8.2bn cubic metres of the

element.

Algeria also mines gold, silver, zinc and iron ore; allied

to this is raw steel production that in 2019 stood at 2mt

in 2019, up from 415,000 mt in 2017. And then there’s

cement production, with production rising from 27.7m

tonnes in 2019 to an estimated 46 Mt by 2025 — half of

which would be a surplus.

Brave | Curious | Resilient / www.cicm.com /January & February 2024 / PAGE 35 continues on page 36 >

COUNTRY FOCUS

ENERGY

On the subject of energy, the US Trade Department notes

(2023 data), that ‘Algeria has the tenth-largest proven

natural gas reserves globally, is the world’s fourth-largest

gas exporter, and has the world’s third-largest untapped

shale gas resources’. Reserves are onshore and Algeria’s

national oil company, Sonatrach, reckons that about

two-thirds of Algeria’s territory remains underdeveloped

or unexplored.

Given that the West has sought to remove reliance on

Russian oil and gas, Algeria has stepped up to fill the gap.

By way of example, Algeria produced 85.1m cubic meters

of natural gas in 2020 but was expected to have produced

112.8m cubic meters in 2023.

In other areas, Energy Capital & Power wrote, in

October 2023, that Algeria aims to reach a renewable

energy capacity of 15,000 MW and produce 27 percent of

its electricity from renewable sources by 2035. Currently,

it generates approximately 686 MW – three percent

of its energy mix – from renewable sources, which are

primarily derived from solar (448 MW), hydro (228

MW), and wind (10 MW).

And the International Journal of Hydrogen Energy

reported, in March 2024, that Algeria is increasingly

focusing on the production and utilisation of low-carbon

and renewable hydrogen.

In particular, the Algerian Strategy on Green Hydrogen

2050 seeks hydrogen sector development and the export

of between 30 and 40 TWh by 2040 of gaseous green

hydrogen – liquefied, and derived. Green hydrogen

it what which has been produced in a carbon neutral

manner. Other ‘colours’ of hydrogen utilise different

forms of fuel in the process.

TOURISM

It’s precisely because Algeria doesn’t spring to mind

that the Government is having to work hard to dispel

a reputation for isolation so that it can become a

destination for tourism.

As one tourist said, as quoted on middleeasteye.net,

‘Algeria has everything: turquoise seas with beautiful

beaches, cities with stunning architecture and history,

vast deserts and mountains. The people are kind and it’s

very affordable’.

The problem is that the country has a difficult visa

process that, when combined with a recent civil war,

hasn’t done much to push it up the rankings. However,

in May 2024, Algerie Eco noted that the country saw

an influx of 800,000 tourists during the first quarter of

‘ALGERIA HAS

EVERYTHING:

TURQUOISE SEAS

WITH BEAUTIFUL

BEACHES, CITIES

WITH STUNNING

ARCHITECTURE

AND HISTORY,

VAST DESERTS

AND MOUNTAINS’.

v Algeria's National Electricity and Gas company (Sonelgaz), through its

subsidiary Sonelgaz-EnR, has just signed concession agreements with several

local and transnational companies for the financing, construction and

operation of 3,000 MW of photovoltaic solar energy. A decisive turning point

for this North African country dependent on fossil fuels.

2024. In 2023, Algeria had 3.3m tourists of which 2.2m

were foreign tourists and 1.1m were from the Algerian

diaspora. The Government is aiming for more than 12m

foreign visitors by 2030.

However, given that visas are easy to obtain only for

the desert areas in the south, but still hard to apply for

elsewhere – and must be done from the visitor’s home

country with detail on flights, accommodation and

bank statements, this might be a difficult ask. In the

meantime, domestic tourism is on the rise (especially

post-COVID) and the Government wants to see more of

the 7m overseas Algerians return home for their holidays.

Summary

Algeria is certainly, for most people, a country that

seems to have flown under the radar for years; no one

really thinks twice as to where their oil and gas comes

from, but there’s a fair chance that it’s Algerian. As to

whether the country can transform itself and move away

from a dependence on hydrocarbons will depend on not

just only private sector entrepreneurialism, but also,

importantly, whether Algeria can dilute down a system

that involves centralised economic planning and a high

degree of bureaucracy.

Author: Adam Bernstein is a freelance finance writer for

Credit Magazine magazine.


BRANCH NEWS

KNOWLEDGE SHARING

CICM Thames Valley Branch

BY HEIDI-MARIE POCOCK ACICM

ON a sunny Autumn morning, we

were welcomed by Equinix, a digital

infrastructure company, to a Thames

Valley branch breakfast meeting at

their offices in Slough. After some

breakfast rolls and pastries, it was

time for our first guest speaker for our

Compliance, Collection, Challenges and Controls Event.

David Sheridan FCICM from ARC Europe, who first

gave us an overview of the company, stressed the skills

the company focuses on when dealing with customers

such as good communication, the agent’s attitude, being

non-judgemental, listening to what the customer is not

saying and taking into account neurodiverse needs of the

customers, as well as Arc Europe’s use of technology to

provide a safe space that is easily accessible. He then focused

on the new Consumer Duty act from the Financial Conduct

Authority which is designed to deliver good outcomes for

retail customers and put customers’ needs first. This has

required a cultural change in collections – more protection

for and focus on customers, more accountability and

emphasis on providing a supportive working environment

for those in collections. David stressed the emphasis on

identifying customers with vulnerabilities and providing

empathetic reassurance rather than legal threats, which can

lead to better resolutions.

Naveed Sheikh of Verizon then took to the stage and started

by asking ‘what do we think when we hear the word ‘Audit’.

Can auditors actually be our best friends? He explained the

mission is to provide assurance, advice and insight, and he

explained what he looks for ‘from 20,000 feet’ as an auditor.

He summarised the control areas and what the auditors

are reviewing in each area – onboarding, monitoring,

resolution. It is not just a checklist, but to add value and

to advise. He explained the approach, first identifying the

scope of the audit, then doing the fieldwork, vetting the

results and identifying action plans and finally following up.

Transparency is key. The conclusion from Naveed and the

audience was that we need to make sure we know our audit

teams and to see them as a partner, not just as an inspector.

Thank you to Nick Williams MCICM at Equinix for hosting,

and to David Sheridan and Naveed Sheikh for providing

some very insightful and entertaining presentations.

Author: Heidi-Marie Pocock ACICM.

CICM Members’ Financial Support Fund is here

to support members of the CICM in times of need

The CICM Members' Financial Support Fund was

established to help members who are in conditions

of need, hardship or financial distress.

Some examples of how CICM has helped its

members are:

Any member, or former member, finding themselves

in difficult circumstances and requiring financial

assistance, please apply today – we are here to help.

Visit the Member Support page of the CICM

website, or email governance@cicm.com for more

information.

Financed the purchase of a mobility scooter for a

disabled member.

Helped finance the studies of the daughter of a

member who became unexpectedly ill.

Financed the purchase of computer equipment to

assist an unemployed member set up a business.

Contributed towards the purchase of an orthopedic

bed for one member whose condition was thereby

greatly eased.

Helped with payment for a drug, not available on

the NHS, for medical treatment of another member.

SCAN FOR FURTHER DETAILS...

Brave | Curious | Resilient / www.cicm.com /January & February 2024 / PAGE 37

ENFORCEMENT

GETTING

BACK ON

TRACK

Enforcement Conduct Board’s new standards are

welcomed as HCEOA calls for urgent action from

Government on fees to track inflation.

BY ALAN J. SMITH FCICM

THE recent publication of new values

and standards by the Enforcement

Conduct Board are an important

step forward, but urgent action

from government is needed on

enforcement fees to ensure that the

sector can continue to innovate and

support this progress.

It’s certainly been a busy autumn at the Enforcement

Conduct Board (ECB). The publication of its new values

and standards for the enforcement profession came after

an extensive consultation and was swiftly followed by

another consultation on its proposed new complaints

handling process.

The HCEOA responded to both on behalf of its

members, and we’ve been pleased to see that the ECB is

engaging with all stakeholders and listening to practical

concerns raised by the enforcement sector as to how it

brings in these new standards, which we fully support.

But what does it all mean?

For anyone who is unaware, the ECB is the independent

oversight body for the enforcement industry. It was set up

with agreement between the enforcement profession and

leading debt advice charities including Money Advice

Trust, Christians Against Poverty and Step Change.

New standards for the

enforcement sector

For now, the ECB’s new standards will work alongside

the Ministry of Justice’s existing National Standards,

which were introduced in 2014, but the new ECB version

covers a wider range of areas.

It has developed two linked sets of standards – one for

enforcement agents and one for enforcement firms – to

ensure that enforcement agents and people subject to

enforcement action know what fair enforcement means

in practice.

Together, they will be an important part of ensuring a

fair and effective enforcement system. That’s what the

profession wants to see, and it’s what the public believes

we need.

We know this because our public perception survey

of 2,000 people across England and Wales earlier this

year showed very strong support for a fair and effective

enforcement system – 83 percent of respondents agreed

or strongly agreed that it is a necessary part of the justice

system.

That is what our members are fully committed to

delivering.


CREDIT MANAGEMENT

Urgent action needed on

enforcement fees

The new standards have been welcomed by the HCEOA

against a backdrop of government inaction on enforcement

fees stretching back more than a decade, despite a

commitment at the time for fees to be reviewed annually in

line with inflation.

This means the enforcement profession is today facing

a major funding challenge, caused by the failure of the

previous government to follow the Ministry of Justice’s own

guidance and recommendations over the past ten years.

At the time the regulations were drafted the Government

commissioned economic analysis to design a fair and

effective fees mechanism which concluded: “the level of fees

should be adjusted annually to track inflation.”

It simply hasn’t happened. Since the statutory fees were

introduced in April 2014, inflation has eroded the real value

of the fees by 24 percent.

RECOVERING

THIS DEBT

EFFECTIVELY

HELPS ENSURE

THAT TODAY’S

CREDITORS

DON’T BECOME

TOMORROW’S

DEBTORS.

The position is out of step with significant fee increases at

HMCTS during that time, and the situation in Scotland,

where enforcement fees have increased five times since 2014.

Over the last five years, CIVEA and HCEOA members

worked on around 15 million cases and collected

approximately £2 billion in outstanding debt on behalf of

thousands of local authorities, businesses and individuals

across England and Wales. Recovering this debt effectively

helps ensure that today’s creditors don’t become tomorrow’s

debtors.

A viable enforcement fee structure is critical to delivering

this. Without it, there is a greater risk of more debts going

unpaid, generating a lack of confidence in the system that

could discourage investment, reduce vital funds available to

local councils and jeopardise economic growth.

This approach to reviewing fees is not new. It was originally

set out in Labour’s Tribunals, Courts and Enforcement

Act of 2007 which set the scene for the introduction of the

Taking Control of Goods Regulations.

Labour may only be a few months into its new administration,

and we cannot hold it responsible for the actions of the

previous government. However, urgent action is needed to

ensure important initiatives like the Enforcement Conduct

Board and its new standards can continue to be funded.

Alan J. Smith FCICM is Chair of the High Court Enforcement

Officers Association.


RETENTION

KEEPING

IT REAL

Is it time to abolish retentions in construction?

BY TYLER FITZPATRICK


CREDIT MANAGEMENT

RETENTIONS are divisive for several

reasons and which side of the fence

an observer sits will normally be

predicated on where in the supply

chain they sit.

The practice of retentions is longstanding

and widespread (as is the practice of delaying

paying them out). A percentage of the value of the work,

typically five percent, is withheld by the employer (under a

main contract) or the contractor (under a sub-contract) until

completion or rectification of defective work. The retention

is usually released in two parts – half at completion, and half

on expiry of the defect liability period, sometime later.

Protection policy

For a paying party, a retention is a useful way to protect itself

against works not being completed and/or defects not being

rectified in accordance with the contract. Equally, retentions

provide a level of protection in the event a payee becomes

insolvent.

Conversely, from a payee perspective, particularly for

smaller businesses, there is little control over retention

payments and, with little to no bargaining power, they can

often find themselves with retention not being paid (or a

significant delay to any payment being received). This has

a significant impact on cashflow and overall profit because

the retention payment can reflect a supplier’s profit margin

for the particular project.

Similarly, a payee is not afforded the same insolvency

protections (and in fact faces the opposite position).

Consider, when Carillion collapsed in 2018 it owed circa

£800m in retention payments to supply chain members.

How much of that was recovered? We suspect very little, if

any.

As a reminder, Construction News noted in a January 2019

report on the Carillion collapse that ‘from the 30,000

suppliers collectively owed £2bn and the 43,000 employees

(19,000 of which were UK-based), through to the 420 public

sector contracts that included build jobs through to delivery

of school meals, the contractor’s demise was felt across the

country’.

As a result, with a payee’s hat on, retentions are open to abuse

and are sometimes used as a way to recoup any additional

costs incurred during the concurrency of the works. In

the event of insolvency, the likelihood of payment reduces

further leaving an aggrieved party with very little recourse

to recover any retention payments.

Retention imbalance

This retention imbalance is not new. It has persisted for

decades but very little has changed. Where change has

occurred, it is generally accepted as not going far enough to

rebalance the scales.


RETENTION

For example, the 2011 amendments to the Construction

Act outlawed payments (including retention payments)

being conditional on performance obligations under

separate contracts (i.e. paid when paid conditions)

and states: ‘The requirement in subsection (1)(a) to

provide an adequate mechanism for determining what

payments become due under the contract, or when,

is not satisfied where a construction contract makes

payment conditional on—

(a) the performance of obligations under another

contract, or

(b) a decision by any person as to whether obligations

under another contract have been performed.’

The intention here was to prevent subcontractors at

the bottom of the supply chain from having to wait

for retention payments to be released further up the

chain before being paid. Each retention payment

under each subcontractor is therefore entirely separate

from the other. This is now reflected in the JCT suite

of contracts by virtue of clause 4.15.3 of the JCT D&B

2011 Edition.

So far so good? Not quite.

Evidence of delays

The Department for Business, Energy and Industrial

Strategy Commission led research into whether

the industry-wide approach to retention payments

had been improved since the 2011 amendment. In a

research paper dated 24 October 2017, the answer was

a resounding ‘no’ and found that:

Evidence of delays in paying retention monies were

commonplace in the construction sector. Around 71 percent

of contractors surveyed, with experience of having retentions

held in the previous three years, had experienced delays in

receiving retentions over the same period.

The qualitative evidence gathered suggests that

unjustified late and non-payment of retentions appears

to be a significant cause of issues associated with the

practice of holding retentions within the construction

sector.

Worryingly, in some cases companies were keen to

maintain good relationships with their main contractor

and wrote off retention monies because they perceived

that it would lead to the next contract.

In a consultation paper published by the Minister

for Business and Industry in February 2020, the

Government found then that of the responses in

Citizen Space – the online portal for commenting on

Government consultations – 82 percent thought that

existing measures were ineffective in addressing the

challenges of prompt release and security of retentions.

Of the six business representative organisations/trade

bodies that responded to the question, 83 percent

thought the existing measures were ineffective.

The paper also suggested that 87 percent thought

unjustified non-payment (excluding insolvency) was

significant or very significant. Some 10 percent felt it

was a minor issue. Of the six business representative

organisations/trade bodies that responded to this

question, 83 percent reported that this was a significant

or very significant issue. Only 17 percent felt it was a

minor issue.

Unjustified late payment

Results were similar for unjustified late payment;

of the 52 responses, 88 percent thought unjustified

late payment was significant or very significant.

Eight percent felt it was a minor issue. Of the six

business representative organisations/trade bodies

which responded to the question, 80 percent said this

was a very significant issue, whilst 20 percent felt it

was a minor issue.

And 74 percent believed non-payment of retentions

due to the company holding the retention becoming

insolvent before return, was significant or very

significant. Some 19 percent believed it was minor and

six percent felt it was not an issue.

Directly related to Section 110(1A) of the Construction

Act, the consultation paper found that of the

responses, 65 percent believed non-payment of

retentions due to ‘payers’ citing that obligations under

another construction contract have not been met, was

significant or very significant. A quarter (25 percent)

believed it was minor or not an issue. Of the six business

trade bodies, 67 percent said this was a significant or a

very significant issue. A third (33 percent) believed it

was a minor issue or not an issue.

Similar results were also found for late payment of

retentions due to obligations under another contract

not being met, with 63 percent of respondents citing

this as significant or very significant, and two percent

believing this was minor or not an issue. Four out of

the six trade bodies felt it was a significant issue, and

only two believed it was minor.

Legislative reform

The issues surrounding retentions are well known and

it is broadly accepted that reform is needed.

In 2018, a draft construction (retention deposit

scheme) bill was introduced which proposed a further

amendment to the Construction Act and would

impose a statutory deposit scheme for retentions.

The intention was to effectively ringfence retentions

and take control over retentions from contractors to

a separate third-party entity. However, the second

reading in the House of Lords is still listed as ‘in

progress’ (some six years later).

In 2021, undeterred by the apparent lack of reform

appetite, a draft construction (retentions abolition)

bill was introduced. This proposed a total abolition of


CREDIT MANAGEMENT

THE ISSUES

SURROUNDING

RETENTIONS

ARE WELL

KNOWN AND

IT IS BROADLY

ACCEPTED

THAT REFORM

IS NEEDED

retentions and a move to alternatives such as retention

bonds. However, little or no progress was made and has

not passed first reading stage in the House of Lords.

The reason for this inaction in the apparent face or

necessary reform? The Government was said to be

waiting for the emergence of an industry consensus

before taking any steps to remedy the issue (as

remarked by Lord Aberdare when introducing the

latter bill).

This therefore brings us full circle and back to the

imbalance of the payor/payee relationship. A payor

will want to retain retentions for the reasons set out

above and the payee will most likely favour wider

reform on the basis absolute control is moved to a

third party (either to a statutory scheme or surety

for example). The cynics among us may be inclined to

believe that an industry consensus is unlikely to arrive

because of these opposing positions and thus serves to

prolong the lack of any real legislative reform.

Industry consensus

There is, despite the cynical view suggested above,

traction for the abolition of retentions from both

contractor and subcontractors alike. Take Build UK,

for example. Its members' have a commitment to the

abolition of retentions by no later than 2025.

In circumstances where retentions are necessary,

the Build UK members (which include many Tier

One contractors/subcontractors) have agreed to

implement a number of minimum standards designed

to circumvent some of the common issues with cash

retentions. Interestingly, these minimum standards

include both policy and practical considerations.

In terms of policy, the standards state that the retention

provision in a subcontract should be no more onerous

than the retention provisions in the main contract;

retention payments should be made in respect of

permanent works only. Temporary/preliminary works

should not be subject to retention deductions. Where

a contract is exclusively for temporary/preliminary

works, no retention should be taken at all.

They also note that where retention deductions are to

be made, they should be made in one payment towards

the end of the works and not as a part of the interim

payment certification process to preserve cashflow.

And retention percentages should be reduced to 1.5

percent.

On a practical level, the standards introduce a new

threshold test for whether a retention is appropriate

and states a total abolition of retention should be used

where the contract value is less than £50,000 and/or

where the works are for temporary and/or preliminary

works only (i.e. scaffolding).

Where no retention is to be withheld, this can be

reflected in modest amendments to both the JCT and

NEC4 contracts (i.e. Retention Percentage in the JCT

contract is stated as ‘Nil’ and in the NEC4 contract,

Option X16 does not apply).

And where a retention is to be withheld, the minimum

standards propose a suite of contract amendments to

ensure transparency, consistency and hopefully limit

the issues that plagued the construction industry

regarding retention, to date.

Conclusion

While other jurisdictions take alternative approaches

to regulating retention, it does not appear that the UK

is going to take any radical steps towards reform (at

least any time soon). Therefore, it may be up to the

industry to reform itself from within. While progress

has been slow, there is now a growing consensus that

traditional retention provisions should be a thing of

the past. There are positive steps for change and to

reduce the unfairness that can arise from the current

approach to retention.

Whether or not the minimum standards are adopted

across the industry remains to be seen but they do

appear to be the building blocks for a convention

that suits all and balances the interests of both the

contractor and subcontractor in equal measure.

Author: Tyler Fitzpatrick is an associate in Fieldfisher's

Construction and Projects team.


HR MATTERS

THE BARE

MINIMUM

The National Minimum Wage

is still an employer minefield

BY GARETH EDWARDS

THE Government periodically

publishes a list of employers that

have been caught not correctly

paying staff and so breaching National

Minimum Wage legislation.

(NMW).

The most recent list, published in February, contains

not only very small firms but some particularly large

ones too – including Estee Lauder, easyJet, and Greggs

– and it is one of the longest with more than 500

employers named. While some of the underpayments

were very small – such as that made by Shimlas

Trade which failed to pay £515.51 to two workers, one

employer, Staffline Recruitment, was found to have

underpaid staff to the tune of £5.12m to 36,767 workers.

The background to the National Minimum Wage is long

and storied. For years, even decades, the Labour Party

grappled with the idea of implementing a national

minimum wage in the UK. However, throughout

much of this period, it faced opposition not only from

businesses but also scepticism and indifference within

the labour movement itself.

Although the pledge to establish a national minimum

wage appeared in Labour's 1992 manifesto, it was seen

more as a liability than a beneficial policy. In fact,

in the early 1980s, trade unions expressed significant

reservations about the potential impacts of a minimum

wage, with some suggesting that regulated wages might

diminish the collective bargaining function of unions.

Sweating the asset

It’s worth noting that wage regulation goes back to

the 1890s, with the establishment of Trade Boards that

were aimed at supporting wages in industries labelled

as 'sweated' or 'poorly organised'. Following World

War Two, these boards evolved into Wage Councils,

although they were always considered secondary to

broader collective bargaining efforts. Additionally, the

Government sought to influence wages through Fair

Wage Resolutions, leveraging its purchasing power

to establish minimum wage standards. At its height,

approximately 3.5m workers were covered by these

councils.

In the 1980s the Thatcher Government initiated reform

of wage regulation as part of broader labour market

reforms, beginning with the elimination of the Fair

Wage Resolutions in 1983. This reform coincided with

broader measures aimed at curbing the power of trade

unions, but it was the Major Government that finally

abolished Wages Councils in 1993.

Meanwhile, the Labour Party constructed a political

argument in favour of implementing a minimum

wage. It highlighted how low wages undermined

companies' competitiveness and high costs due to

staff turnover necessitating extensive and expensive

training and recruitment. It also began reframing a

national minimum wage within the broader economic

context of welfare reform and ensuring that work was

financially rewarding. Consequently, by 1997, a national

minimum wage had gained relatively widespread

acceptance, with even the Confedaration of British

Industry (CBI) willing to offer its endorsement.

The 1998 National Minimum Wage Act was enacted

by the new Labour Government. It established the

Low Pay Commission that sets the National Minimum

Wage. The first rate, set in April 1999, was £3.60 an

hour for adults aged over 22 and covered as many as

1.2m adults. Back to the present day the legislation still

aims to ensure that workers receive pay in the form of

cash rather than benefits in kind. It seeks to stop unfair

competition based on artificially low prices due to

employers paying workers very low rates of pay.

As to the mechanics, the NMW sets the amount of

pay due to most workers from school leaver age up to

the age of 25, with the National Living Wage (NLW)

applying to those aged 25 or over. All workers, except

those who are genuinely self-employed, are entitled to

receive the NMW or NLW.


CREDIT MANAGEMENT

The NMW/NLW is calculated by including most financial

awards or payments, but excluding allowances such as

regional or on-call allowances, unsocial hours payments, tips

and gratuities, or any benefits in kind, with the exception of

accommodation up to a specified amount.

Changes from April

The now annual changes to the regime came in from

April 2024 following the Government’s acceptance of the

recommendations of the Low Pay Commission.

EMPLOYERS

SHOULD PAUSE

TO CONSIDER

THE IMPACT

THAT THESE

INCREASES

MAY HAVE ON

THEIR BUSINESS

FINANCES

AND PAY

STRUCTURES.

Prior to April 2024, the NLW applied to those 23 and above.

However, from April it expanded to include 21 and 22-yearolds.

The NLW increased by 9.8 percent from £10.42 per

hour to £11.44 per hour. For a full-time employee working

37.5 hours per week, this equates to a minimum annual

salary of £22,308.

As for younger employees and apprentices, they too saw

significant pay increases from April: An 18-20-year-olds'

hourly pay increased to a minimum of £8.10 per hour.

Additionally, 16-17-year-olds and apprentices saw their pay

increase to a minimum of £6.40 per hour which is a huge 21.2

percent increase from the current minimum in this bracket.

It’s for this reason that employers should pause to consider

the impact that these increases may have on their business

finances and pay structures. In particular, an increase to the

rates of pay for the lowest paid roles can create pressure

on the whole pay structure of an organisation, decreasing

the differential between an entry level role and first line

management, for example.

Enforcement action

Under NMW legislation, employers have an ongoing

obligation to keep certain records in relation to the hours

worked by, and the payments made to, workers – all the

information about the pay received by a worker in a

particular pay reference period must be contained in a

single document. Records can be kept on paper or computer

but since 1 April 2021 they must be kept for a minimum of

six years from the end of the pay reference period following

the period to which they relate.


HR MATTERS

FOR ANY REGIME TO WORK

THERE HAS TO BE A POTENTIAL

STICK AND SO EMPLOYERS FOUND

IN BREACH OF THE LEGISLATION

MAY FACE SIGNIFICANT LEGAL

REPERCUSSIONS.

The 'pay reference period' is defined as the period of

time that the pay covers. So, for example, if paid daily,

the pay reference period is one day, if it’s weekly, the

pay reference period is one week, and it’s paid monthly,

then the pay reference period is one month. It’s

important to note that the pay reference period cannot

be longer than a month.

Like other forms of employment legislation, the NMW is

incredibly complex which is sometimes underpayments

are the result of a misunderstanding of the law rather

than any deliberate failure by an employer to comply.

Indeed, there are a number of common scenarios where

employers fall short of NMW. Caution is recommended

over five distinct problem areas.

Firstly, there’s employment status. Where this is

misclassified or where a worker is ‘off-payroll’ employers

can fail to pay the correct NMW. Then there are issues

over salaried staff who are relatively lowly paid and

regularly work long hours; employers fall short when

taking into account the hours worked in relation to the

rate of NMW.

Another area to keep tabs on is working hours. This

may apply if a worker is required to arrive early or stay

late for training, debriefing or staff meetings; these

hours constitute ‘working time’ therefore they should

be paid at NMW. Employers also need to be aware of

staff uniforms as employers that require staff to pay for

their own uniforms out of their salary can cause pay to

fall below the NMW. Lastly, employers sometimes slip

up where they fail to increase a workers' pay following a

birthday which moves them into a new NMW bracket.

Harsh repercussions

For any regime to work there has to be a potential stick

and so employers found in breach of the legislation

may face significant legal repercussions.

It’s important to remember that underpaid workers

can launch formal and/or legal action. Those who think

that they have suffered an underpayment of NMW can

raise a formal grievance to their employer, complain to

HM Revenue and Customs or bring a number of claims

against their employers.

In particular, they can bring a claim for unlawful

deduction from wages under section 13 of the

Employment Rights Act 1996; a breach of contract,

either in the employment tribunal or the County

Court; or a claim for unfair dismissal or detriment

under the National Minimum Wage Act 1998.

And then there are the financial penalties that can be

brought to bear; employers found to have not paid

their workers the NMW can face substantial fines –

currently up to a maximum of £20,000 per underpaid

worker.

Beyond that is the risk of adverse publicity: The

Government’s ‘name and shame’ scheme can put a

negative spotlight on employers found to be in breach

of the NMW legal requirements – and this could result

in significant damage to the employer's reputation. The

February 2024 list is bound to embarrass some, but all

the other lists are still available online – the shame will

linger.

And for the worst offenders there’s criminal

prosecution. This can occur if employers persistently

refuse to comply with the law and to co-operate with

the compliance officers.

Summary

The National Minimum Wage is nothing new and this

year celebrates 25 years of operation. While it’s well

known and there are some employers who deliberately

seek to underpay staff, the majority just make accidental

errors. For them the best advice is to look at the risk

factors and seek to deal with them.

Author: Gareth Edwards is a partner in the employment

team at VWV.


WHAT THEY DID NEXT

TIME FLIES

First in a new series of ‘what they did next’.

BY PETER WALLWORK FCICM

A

little over four years ago,

I stepped down from my

position at the Credit Services

Association (CSA), having

been its CEO for just over 10

years. It was a strange time to

exit the role having resigned in

December 2019, a few weeks before the world became

engulfed in the COVID-19 Pandemic, but I finally left

the CSA at the end of July 2020.

I was lucky to have a number of interesting offers of

part-time work, but one by one, they all disappeared

in front of my eyes, some more abruptly than others

thanks to the crisis.

But it was ok, I was looking forward to a different

life - a transition to retirement, via a corridor of nonexec

positions and consultancy. Thankfully, despite

the pandemic and what could only be described as

an unusual start, things turned out quite well. On a

personal front, I am certainly healthier, calmer and

more rested as I don’t find myself needing to respond

to email at midnight anymore, nor spend hours every

week on crowded train journeys between Newcastle,

London, Wigan and sometimes even the rest of Europe!

Rewarding positions

In the end I was lucky to find a mixture of rewarding

positions, some of which have paid an income, some

that haven’t; I put a bit of money into an exciting new

SaaS business and contributed quite a bit of my time

into that as well. Whatever I’ve done, I have been able

to put my 40 years’ or so experience to extremely good

use – it’s surprising just how much history repeats

itself. But whilst that’s all been great, I started to feel

like I needed a complete change.

training programme, with an offer of paid work after

qualification – which I did – and after learning how to

‘fly’, I started as a flight instructor, helping members of

the public enjoy flight experiences in Vulcan Bomber

and Spitfire simulators.

Then all of a sudden, around seven months ago, the

company went bust – thanks in part to COVID, but

also poor business management. Long story short, me

and the other instructors put some money together,

bought the assets and re-opened the business in July

2024 and so far, so good.

They say you should never make your hobby, your job,

but actually it seems to have been just the change in

direction that I now realise I was looking for. The funny

thing is, that I found the experience I gained in the

finance industry, was useful right from the beginning

of that process, first reviewing the previous company’s

Company Voluntary Arrangement (CVA), then dealing

with its failure, then the liquidators. I like to think

I’ve been a key part of setting up the new business,

acquiring the assets, modelling the strategy, helping to

make it all a reality – all stuff that I’ve learned during

my time as a CICM member.

True, some would say that I’ve been flying businesses

by the seat of my pants for years – some of my new

colleagues might tell you I still am, but it’s just proof

that there is life after debt collection…

Author: Peter Wallwork FCICM

Non-Exec Director, Chair,

Consultant and Board Adviser.

www.runwaysim.com

A little over 18 months ago, I booked an experience in

a Vulcan Bomber flight simulator. It just caught my eye

on Facebook. Something completely different! A little

while later, I was invited to join the company’s cadet


LOOKING FOR

YOUR NEXT

CAREER MOVE?

FEATURED

TRAINING & CONTENT DELIVERY MANAGER

Fully remote with UK wide travel Up to £42,000

Hays is very proud to be exclusively working with the CICM to

identify a MCICM (grad) with the skills and passion to develop

and deliver high quality training and resources for CICM

students, members and credit professionals. You’ll design

and deliver training courses (in person and virtual, live and

pre-recorded) both as part of the student curriculum but also

on a one-off bespoke basis and you will also be responsible

for development of other resources such as study texts, online

learning, website articles and social media posts. We’re looking

for a senior credit management professional with experience of

training, coaching or mentoring and this is the job opportunity

that takes your career in, possibly, an unexpected direction

but with plenty of job satisfaction as you support and help the

future of credit management and elevate your profession.

Ref: 4622559

Contact Jan Bradshaw on 07740 817905

or Jan.Bradshaw@hays.com

This is just a small selection of the many opportunities

we have available for credit professionals. To find out

more, visit our website or contact Natascha Whitehead,

Credit Management UK Lead at Hays on 07770 786433.

CREDIT CONTROLLER

Wilmslow, £30k

Due to expansion, we are seeking an experienced Credit

Controller to join a reputable company based on the outskirts

of Wilmslow. Reporting to the Credit Manager you will be

working onsite as part of a small fast paced team and be

tasked with managing your own B2B ledger. A varied role, you

will be contacting customers by telephone and email to retrieve

outstanding payments in order to maintain a clean ledger.

Working proactively, you will resolve any queries in a timely

manner and highlight any potential problematic accounts.

Creating debtor reports, sending out invoices and copy

statements. Ref: 1105JR

Contact Joanna Taylor on 016 1926 8605

or Joanna.Taylor-coburn@hays.com

PART TIME CREDIT CONTROLLER

Bristol, £29k pro rata

This role is 20 hrs per week, ideally over five days (4 hrs per

day), although three full days may be considered if flexibility

during month end can be agreed. Your varied duties will include

timely collection of outstanding invoices, negotiate payment

plans where needed with customers, dealing with queries,

reconciling accounts, and keeping the sales ledger updated.

Ref: 4624523

Contact Sejal Hampson on 07816 406959

or Sejal.Hampson@hays.com

hays.co.uk/credit-control-jobs

© Copyright Hays plc 2024. The HAYS word, the H devices, HAYS WORKING Brave | FOR Curious YOUR | Resilient TOMORROW / www.cicm.com and Powering / the December world of 2024 work and / PAGE associated 48 logos and artwork are trademarks of Hays plc.

The H devices are original designs protected by registration in many countries. All rights are reserved. CM-00553

CREDIT CONTROLLER (12 MONTHS FTC)

London, £35k

This is a newly created position, working for a global property

company, based in central London. This is a hybrid position,

3 days in the office, 2 days at home. This role will suit an

individual who has strong credit control experience, preferably

within a large organisation. Duties will include collection of

debt via telephone and email, resolution of queries and build

strong working relationships both internally and externally.

This is a unique opportunity that allows you to break into

the niche property industry, as candidates without property

experience will be considered. Ref: 4625560

Contact Hussain Ahmed on 020 346 50018

or hussain.ahmed@hays.com

CREDIT CONTROLLER

Birmingham, £30k per annum + bonus

A leading professional services organisation based in

Birmingham City Centre is currently recruiting for a Credit

Controller to join them on a permanent basis. Working as

part of a team you will be responsible for your own ledger

of accounts and will report to the Credit Control Manager.

The ideal candidate will have previously worked as a credit

controller in a professional services environment and be skilled

at building relationships internally and externally. This position

offers both flexible and hybrid working. Ref: 4623782

Contact Henry Brook on 033 3010 7517

or henry.brook@hays.com

Discover new

opportunities today

SALARY AND RECRUITING TRENDS

THE

NUMBER’S UP

How will pay and conditions be affected in 2025?

BY NATASCHA WHITEHEAD FCICM

Economic uncertainty, continued costof-living

concerns, persistent skills

shortages, talks of skills-based hiring,

the growing presence of Artificial

Intelligence (AI) and hybrid working

trends are some of the factors we’ve

seen re-shape the world of work over

the last 12 months. The question is: how will these factors

impact us in the year ahead?

Economic concern

It’s no secret that market conditions are difficult today,

but being aware of the factors that pose the greatest

threat is an important step towards preparing for what’s

to come and getting the best out of the year ahead.

As it stands, over a third (35 percent) of finance employers

are optimistic about the wider economic climate and the

employment opportunities it may create within the next

2-5 years, a slight decrease from last year (38 percent).

The external factors that organisations expect to face

in the upcoming 12 months include:

• the economic environment (60 percent)

• rising costs for businesses (57 percent)

• recruiting the right talent (49 percent).

The biggest hurdles employers predict they’ll

contend with internally are:

• talent retention (56 percent)

• managing change (53 percent)

• skills shortages within current teams (37 percent).

Similarly, optimism towards the wider economic climate

has dipped amongst credit professionals, with just

17 percent of those working in credit saying they are

optimistic about the wider economic climate and future

employment opportunities, compared to 38 percent who

said the same the year prior.

Job satisfaction and worklife

balance

On a more positive note, economic uncertainty hasn’t

had a negative impact on job satisfaction, as over two

thirds (68 percent) of credit professionals are satisfied in

their current role, a slight increase from the year before


CREDIT MANAGEMENT

(66 percent). As well as this, most (70 percent) people

working in credit plan on staying put rather than changing

to a different industry in the year ahead.

Instead, many credit professionals have their sights set on

a new opportunity within the sector; over six in ten (61

percent) plan to move jobs in the next 12 months and 46

percent even sooner, within six months.

When considering a new position, the top three factors

that make an organisation most appealing are:

• job security (69 percent)

• tailored flexible working policies (64 percent)

• an engaging and supportive team culture (49 percent).

It’s also promising that two thirds (66 percent) of those

working in credit are currently satisfied with their worklife

balance, versus 60 percent who said the same in last

year’s survey.

Hiring for potential

Close to seven in ten (69 percent) finance employers say

they are planning to recruit new staff over the year ahead, a

notable increase on the year before (60 percent). However,

the vast majority (92 percent) have experienced some

degree of skills shortages in the past 12 months, rising from

88 percent of employers who struggled to find talent in the

year prior.

The top five soft skills that are most in-demand include:

• communication (51 percent)

• the ability to adopt change (41 percent)

• the ability to learn and upskill (33 percent)

• flexibility and adaptability (31 percent)

• coordinating well with others (29 percent).

Nearly half of finance employers are open minded when it

comes to the benefits of skills-based hiring, as 47 percent

say it is not important to them that a job applicant has a

degree, compared to 53 percent of employers who say an

applicant’s academic background is important.

Hiring for potential is certainly an effective way to combat

the shortage of skills, as employers can nurture talent

through training and development opportunities. As our

research shows, three quarters (75 percent) of finance

employers are confident a person’s willingness to learn is

more important than their existing skills. On top of this, 77

percent say they are likely to hire a professional who does

not possess all the required skills, with the intention of

upskilling them. Positively, 81 percent of employers believe

there is scope for career progression for their staff at their

organisation.

Pay transparency

Over the last 12 months, 88 percent of finance employers

increased their employees’ salaries, with 24 percent

increasing wages by more than 5 percent and 87 percent

plan to increase salaries in their organisation in the year

ahead. Salaries across the accountancy and finance sector

more broadly have increased by an average of 3.6 percent

over the last year.

Optimistically, 71 percent of credit professionals are

satisfied with their salary, but what emphasis do credit

professionals place on pay transparency today? Crucially,

over half (57 percent) would not consider applying for a

role that does not include the salary on the job description

and three quarters (75 percent) of professionals say it is

important for their organisation to be open about how pay

levels and pay rises are set.

AI training is falling short

AI has firmly established itself across the world of work,

but how to take advantage of these rapid advancements in

technology is an ongoing challenge. While close to a third

(35 percent) of finance employers say their organisation is

recommending the use of AI technologies or tools in the

workplace, 65 percent are not recommending it. There

seems to be a sense of apprehension around AI’s capabilities

and how we can tap into its potential and, without the

necessary training and upskilling, organisations will miss

out on the opportunities AI could bring.

Our research reveals that less than a third (32 percent) of

finance employers say their organisation offers training

or support for the use of AI and almost half (47 percent)

don’t have access to the right skills to make the best use

of AI. Over a quarter (29 percent) of employers are unsure

whether their workforce has what it takes to utilise AI.

In terms of credit professionals, only 9 percent are currently

using AI tools as part of their role and just 14 percent have

received training or support from their employer to adopt

AI technologies. In stark contrast, nearly three quarters

(73 percent) of those working within credit roles would be

willing to take part in upskilling or reskilling programmes

to utilise AI technologies in the workplace.

Hybrid working

The draw of flexible working is still going strong, as more

than half (57 percent) of credit professionals would not

accept a job in the future that didn’t offer hybrid working.

59 percent are currently working in a hybrid way, whilst

over a quarter (27 percent) are back in the workplace fully

and 14 percent are based fully remotely, which is consistent

with last year’s findings.

Seven in ten (70 percent) finance employers currently offer

hybrid working and almost half (48 percent) are positive

this has increased talent retention. Looking ahead, eight in

ten (80 percent) employers across the sector say their hybrid

offering will stay the same, whereas 17 percent anticipate

their staff will be required in the workplace more often.

Conclusion

Ultimately, there are lots of exciting opportunities across

the world of credit in the year ahead, so long as we embark

on the next 12 months with open-mindedness, resilience

and an enthusiasm to learn, adapt and grow.

Author: Natascha Whitehead FCICM, Senior Business Director

at Hays specialising in Credit Management.


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EXCLUSIVE PAYMENT TRENDS

GLAD TIDINGS

Latest late payment data shows improvements

across the board.

BY ROB HOWARD

THE latest late payment performance

across the UK and Ireland is full of

positives, with the vast majority

of regions and sectors making

cuts to late payments and all the

average Days Beyond Terms (DBT)

figures are on the way down across

the board. In the UK, average DBT across regions and

sectors reduced by 2.2 and 1.9 days respectively. Over

in Ireland, the average DBT figure across regions and

sectors reduced by 2.0 and 1.4 days respectively. Average

DBT across the four Irish provinces dropped by 1.4 days.

SECTOR SPOTLIGHT

The UK sector standings are filled with improvements,

with 15 of the 22 sectors reducing late payments.

Although six sectors did see increases to DBT, these

were all minimal. The biggest increase of 1.2 days for the

Financial and Insurance sector proves the point.

Focusing on those moving forward, the Health and

Social sector saw the biggest improvement, with a

reduction of 9.2 days seeing it move off the bottom and

up the rankings, now with an overall DBT of 8.5 days.

Also on the up, the Real Estate (-5.8 days), Education

(-5.7 days), Energy Supply (-5.2 days) and Mining and

Quarrying (-4.8 days) sectors. The International Bodies

sector remains at the top of the leaderboard, with a

further reduction of 1.5 days taking its overall DBT to

0.4 days.

The same can be said in Ireland, where the International

Bodies sector remains in top spot alongside Water &

Waste. Both saw no change and remain on a DBT of zero

days overall.

Of the nine sectors on the up, the Hospitality sector

saw the biggest improvement, reducing its DBT by a

significant 16.1 days to take its overall figure to 7.6 days.

The Other Services sector, which includes dry cleaners,

hairdressers and other beauty services, through to

membership organisations, is also making tracks, slicing

its DBT by 11.8 days to take its overall DBT to 4.7 days.

Elsewhere, the Business Admin & Support and

Agriculture, Forestry and Fishing sectors are also moving

in the right direction, reducing DBT by 9.8 and 8.5 days

respectively. Of the seven sectors going backwards, the

Mining and Quarrying (+9.1 days), IT and Comms (+7.6

days), Real Estate (+6.9 days) and Public Administration

(+5.0 days) all slide down the standings following

increases to DBT.

REGIONAL SPOTLIGHT

It’s very nearly a clean sweep across the UK, with 10 of

the 11 regions reducing their DBT, and just East Anglia

letting the side down for a full house following a minimal

increase of 0.7 days to its DBT. Of those on the up, the

East Midlands saw the biggest improvement, reducing its

DBT by 5.1 days to take its overall tally to 8.3 days overall.

Elsewhere, both Yorkshire and Humberside and the

South East move into the UK’s top five prompter payers

after cutting their DBT by 3.8 and 3.5 days respectively.

The South West is now the best performing region with

an overall DBT of 6.9 days after knocking 2.2 days off its

tally.

In Ireland, the overall picture is more mixed, but still

full of positives with 16 of the 26 counties making

improvements. Of those going in the wrong direction,

however, Cavan and Laois took the biggest hits and are

now both among the bottom five poorest payers in Ireland,

following increases of 11.8 and 11.4 days respectively

to DBT. Looking at the positives, although Carlow

remains at the bottom of the standings as the worst

performing county, it made the biggest improvement,

reducing its DBT by a sizeable 20.0 days to take its

overall figure to 21.5 days. Elsewhere, Limerick (-9.5

days), Mayo (-9.2 days), Longford (-8.1 days) and

Waterford (-7.7 days) all made positive strides in the

right direction.

Across the four Irish provinces, Munster has risen to

the top of the rankings, with a cut of 3.7 days taking its

overall DBT to 4.5 days. Connacht remains at the bottom

but is moving in the right direction at least, reducing its

DBT by 2.9 days.


*x

STATISTICS

Data supplied by the Creditsafe Group

Top Five Prompter Payers

Region (UK) Oct 24 Changes from Sept 24

South West 6.9 -2.2

East Midlands 7.2 -1.8

East Anglia 7.5 0.7

South East 7.5 -3.5

Yorkshire and Humberside 7.9 -3.8

Bottom Five Poorest Payers

Region (UK) Oct 24 Changes from Sept 24

London 9.3 -2.2

Northern Ireland 9.3 -0.8

North West 8.8 -1.4

Wales 8.6 -1

Scotland 8.3 -2.1

Top Five Prompter Payers

Sector (UK) Oct 24 Changes from Sept 24

International Bodies 0.4 -1.5

Entertainment 4.5 -4.5

Education 5.2 -5.7

Energy Supply 5.4 -5.2

Agriculture, Forestry and Fishing 5.5 0

Bottom Five Poorest Payers

Sector (UK) Oct 24 Changes from Sept 24

Real Estate 11 -5.8

Dormant 10.5 0.9

IT and Comms 9.4 0.4

Manufacturing 9.1 -1.6

Other Service 9.1 0.4

Getting worse

Financial and Insurance 1.2

Other Service 1.1

Dormant 0.9

Water & Waste 0.7

Construction 0.4

IT and Comms 0.4

Getting better

Health and Social -9.2

Real Estate -5.8

Education -5.7

Energy Supply -5.2

Mining and Quarrying -4.8

Entertainment -4.5

Transportation and Storage -2.2

Public Administration -1.9

Business from Home -1.8

Manufacturing -1.6

International Bodies -1.5

Business Admin and Support -1.1

Professional and Scientific -0.2

NORTHERN

IRELAND

-0.8 DBT

SOUTH

WEST

-2.2 DBT

WALES

-1 DBT

SCOTLAND

-2.1 DBT

NORTH

WEST

-1.4 DBT

WEST

MIDLANDS

-5.1 DBT

YORKSHIRE &

HUMBERSIDE

-3.8 DBT

EAST

MIDLANDS

-1.8 DBT

LONDON

-2.2 DBT

SOUTH

EAST

-3.5 DBT

EAST

ANGLIA

0.7 DBT

Hospitality -0.1

Wholesale and retail trade; repair of

motor vehicles and motorcycles -0.1

Region

Getting Better – Getting Worse

-5.1

-3.8

-3.5

-2.2

-2.2

-2.1

-1.8

-1.4

-1

-0.8

0.7

West Midlands

Yorkshire and Humberside

South East

London

South West

Scotland

East Midlands

North West

Wales

Northern Ireland

East Anglia


EXCLUSIVE PAYMENT TRENDS

CONNAUGHT

10.5 DBT

DONEGAL

14.8 DBT

LAOIS

11.4 DBT

ULSTER

6.2 DBT

MONAGHAN

2.3 DBT CAVAN

16.6 DBT

LEINSTER

7.4 DBT

Getting worse

Mining and Quarrying 9.1

MUNSTER

4.5 DBT

KERRY

2.4 DBT

TIPPERARY

3.9 DBT

ROSCOMMON

14.8 DBT

CARLOW

21.5 DBT

WICKLOW

1.8 DBT

IT and Comms 7.6

Real Estate 6.9

Public Administration 5

Wholesale and retail trade 1.7

Construction 1

Health and Social 0.5

Top Five Prompter Payers – Ireland

Region Oct 24 Changes from Sept 24

Wicklow 1.8 -4.3

Monaghan 2.3 -2.8

Donegal 2.4 -6.9

Kerry 3.7 -2.6

Tipperary 3.9 1.5

Bottom Five Poorest Payers – Ireland


Carlow 21.5 -20

Cavan 16.6 11.8

Mayo 15 -9.2

Roscommon 14.8 -5.9

Laois 11.4 11.4

Top Four Prompter Payers – Irish Provinces


Munster 4.5 -3.7

Ulster 6.2 0.7

Leinster 7.4 0.2

Connacht 10.5 -2.9

Getting better

Hospitality -16.1

Other Service -11.8

Business Admin and Support -9.8

Agriculture, Forestry and Fishing -8.5

Manufacturing -5.5

Professional and Scientific -4.1

Education -2.5

Financial and Insurance -2

Transportation and Storage -0.1

Top Five Prompter Payers – Ireland

Sector Oct 24 Changes from Sept 24

International Bodies 0 0

Water & Waste 0 0

Education 2.1 -2.5

Entertainment 3.3 0

Financial and Insurance 3.4 -2

Bottom Five Poorest Payers – Ireland

Sector Oct 24 Changes from Sept 24

Business Admin and Support 11.3 -9.8

Professional and Scientific 10.8 -4.1

Real Estate 10.6 6.9

Mining and Quarrying 9.4 9.1

Manufacturing 9.0 -5.5

Nothing changed

Energy Supply 0

Entertainment 0

International Bodies 0

Water & Waste 0


International Trade

Monthly round-up of the latest stories

in global trade by Andrea Kirkby.

BREXIT ISN’T HELPING

SMALL EXPORTERS

ACCORDING to a recent report on the

BBC that cites a study by Aston University

Business School, Brexit red tape on British

businesses has caused goods trade

between the UK and EU to fall – and the

problem is getting worse.

It appears that many smaller UK

producers have given up exporting small

amounts to the EU after facing more rules

and regulations. In particular, between 2021

and 2023, the study found that UK goods

exports to the EU were down 27 percent

and imported goods were 32 percent lower

than where they would have been had Brexit

not happened. Overall, the variety of trade

export goods has also dropped with 1,645

fewer types of British products exported to

every EU country.

It should be said that the report does

not include the service sector which has

performed better than many had expected

since Brexit.

An increase in regulations such as product

standards, safety checks and labelling

requirements hasn’t helped matters –

even if they seek to protect consumers,

competition or the environment.

Agrifood, textiles and materials

manufacturing (wood and paper) have

been the worst affected as has trade

with more distant countries in the EU.

That said, some sectors have done well

especially in exporting to bigger EU

economies such as Germany and France

– tobacco, railway and aircraft increased

in the variety of exports to EU nations.

Norfolk boat builder wins major contract

ALICAT Workboats has secured a contract

to build offshore wind workboats after

UK Export Finance (UKEF), the UK export

credit agency, helped it to access a £2m

financing package.

With the new capital, Alicat says that it

will be able to build two workboats worth

almost £1m each for export to Turkey.

Both will be manufactured in Norfolk.

Virgin Money provided the facility, backed

by a UKEF guarantee offered through its

General Export Facility (GEF).

As background, Alicat provides marine

and engineering services including the

manufacture of aluminium workboats,

full-service boat repair, and carbon and

stainless-steel fabrication. The UKEF

says that its GEF aims to help businesses

of all sizes – especially smaller businesses

– access trade finance options up to

£25m.

UK AND THAILAND

SIGN TRADE PACT

THE UK and Thailand have signed

an Enhanced Trade Partnership

(ETP) aimed at increasing trade

and investment between the two

countries. Thailand is the secondlargest

economy in Southeast Asia,

and trade between the UK and

Thailand is currently worth £5.9bn

annually.

The ETP is designed to help sales

and investment in priority sectors

including automotive, tourism,

investment, digital trade, financial

services and education. The pact

commits both countries to identifying

opportunities that could be delivered

through a potential future free

trade agreement between the two

countries.

In another win for UKEF, a £10m funding

package provided by Danske Bank and

guaranteed by the body has helped The

Deluxe Group secure one of its biggestever

export contracts.

Deluxe recently secured a £30m contract

for the interior fit-out of a new cruise ship

in Germany, with Danske Bank providing

finance guaranteed by UKEF. It’ll take The

Deluxe Group, which works around the

world on interior fitout projects in the

leisure and hospitality sectors, 12 months

fitting out the dining and entertainment

areas on board the new vessel, which is

due to set sail in Asia in 2025.

The Deluxe Group says that it has been

expanding into international markets for

a number of years, including Europe and

the US, where it sees further opportunity

for growth in the themed leisure market in

future.


INTERNATIONAL TRADE

UK Science Network in Mexico

THE UK Government has published a note

on the recently created Ministry of Science,

Humanities, Technology and Innovation

(SECIHTI) in Mexico which, it says, ‘plays

a pivotal role in promoting and funding

scientific research across the country’.

The body is tasked with designing and

implementing Mexico’s national policy on

Humanities, Sciences, Technologies, and

Innovation.

The note gives background on the

Mexican science and innovation landscape

to aid UK exporters. It says that Mexico

is characterised by strong geographic,

institutional and budgetary centralisation

and SECIHTI manages most research

High LOW TREND

GBP EUR 1.20932 1.18401 Flat

GBP USD 1.30614 1.26239 Down

GBP CHF 1.13403 1.11165 Flat

GBP AUD 1.98739 1.93842 Up

GBP CAD 1.81113 1.77051 Down

GBP JPY 199.617 194.113 Up

programmes and is the main counterpart

for cooperation in science and technology

with international organisations.

Its total budget in 2024 is expected

to reach £1.5bn which represents 0.51

percent of the total federal budget. Mexico

currently has the 13th largest economy

in the world and has significant potential

in emerging technologies. It is the second

largest economy in the Latin American

region and its internal demand is growing.

This is evident particularly in sectors that

should be of interest to the UK. These

include agriculture, renewable energy,

financial services, retail, transport and

infrastructure.

For the latest

exchange rates visit

www.currenciesdirect.com

or call 020 7874 9400

Currency Exchange Rates

This data was taken on 15th

November and refers to the month

previous to/leading

up to 14th November 2024.

British beetroot in the United States

THE Government has helped open the

door to the US market for UK beetroot

growers. Following extensive talks

between the two Governments and trade

representatives, it is reported this will open

new opportunities for British farmers by

increasing export opportunities and raising

the profile of British beetroot in international

markets.

The Government hopes that this will help

grow the economy and expand UK trade

relationships post-Brexit. However, while the

deal will allow US processors to diversify

their supply to satisfy demand for beetroot

outside the US growing season, in reality

it’s not a big deal as estimates reckon that

this new access will be worth approximately

£150,000 per year in increased exports.

That said, the NFU is hoping that this

is a precursor to a deal that allows British

producers to further access the US market.

ICC 1: REPORT ON

TRADE DIGITALISATION

THE International Chamber of

Commerce (ICC) Digital Standards

Initiative has published a report which

illustrates, through 22 case studies,

how organisations take advantage

of digital tools and global standards

in order to address supply chain

challenges. The case studies focus

on shipping and logistics, commercial

documents and product-related

information, cross-border regulatory

compliance, and financial services

and fraud prevention as critical areas

of digitalisation. The report suggests

that firms can save on costs, enhance

competitiveness, and achieve greater

operational efficiency by adopting

(more) digitalisation in their trade

processes.

ICC 2: ADVERTISING

AND MARKETING

COMMUNICATIONS CODE

THE International Chamber of

Commerce (ICC) has published the

11th edition of its Advertising and

Marketing Communications Code,

which addresses challenges such

as sustainability, AI and influencer

marketing, emphasises the

importance of diversity and of avoiding

objectification stereotypes, and

provides clarifications in areas such

as marketing aimed at children and

teenagers. The ICC wants advertisers

and marketers to champion ‘robust’

ethical standards to aid trust among

consumers and policymakers.

DIGITAL TRADE

THE Department for Business and

Trade has announced that the UK-

Ukraine Digital Trade Agreement

(DTA) came into force on 1 September

2024. The DTA, which is part of a

series of UK Government’s initiatives

to support Ukraine, seeks to enable

faster and cheaper trade between the

two countries and enhance tech sector

collaboration.

COFACE BAROMETER

TRADE insurer Coface has published its

latest – October – economic barometer

which reckons that the global economic

recovery is mixed. It says that while the

US is heading for a soft landing, the

eurozone and China continue to face

uncertainties. In this context, Coface

has adjusted its assessments for five

countries and 17 sectors, reflecting a

scenario of stabilised global growth in

2025, albeit below potential.


BRANCH NEWS

CREDIT

CIRCUIT TRAINING

CICM Sheffield and District Branch.

BY PAULA UTTLEY MCICM(GRAD)

TO kick off the new academic year,

Sheffield and District Branch hosted a

Credit Circuit Training evening at the

English Institute of Sport in Sheffield

on 9 October. Thankfully, Lycra was

not needed for these sessions, but what

was lined up for the participants?

Upon arrival, members and guests made their way to

the registration desk to sign in and receive their group

number, before networking in the café with other credit

professionals over refreshments, and relaxing after a busy

day in the office.

Branch Vice Chair, Paula Uttley, opened the meeting with

a blast on the whistle, welcoming everyone and giving a

briefing on how the Circuit Training would proceed.

Members and guests were to start in the seminar room

matching their group number.

Behind door one was Carl Jones of MD Law, Partner

and Solicitor Advocate helping us to navigate the court

processes. Behind door two was Darren Myers, a Manager

at PwC guiding us through financial analysis, and behind

door three were members of the Economic Crime Unit of

South Yorkshire Police with whom we could discuss cyber

fraud trends. At the end of the first session, the whistle

would signal a change of rooms and then again until all

training stations had been visited.

Carl Jones took us through examples demonstrating both

bad and good attempts to escalate outstanding debts,

from initial letters before action to commencing court

proceedings, also highlighting the issues to be captured and

the necessity to provide absolute clarity in the claims and

to ensure compliance with legal entity versus individual

claims. One particularly bad example on a claim form

raised quite a titter from our group. I’m sure that a lot of

credit managers’ patience wears thin from time to time –

well done Carl, very funny. I’m sure that the defendant was

guilty!

Darren Myers talked us through some accounts of companies

that ultimately entered into insolvency proceedings. We

started with a simple balance sheet of one company and

then moved onto an annual report and financial statements

of another. We discussed the data which is sometimes not

so obvious in the financial accounts and how to interpret

audit qualifications, inter group balances and additional

notes to the accounts.

South Yorkshire Police focused on the different types

of fraud including social engineering, highlighting that

humans are always the weakness in a security system. The

importance of reporting and the known under-reporting

of Cyber Crime. We were made to think about the

information that we put into the public domain about

ourselves, and we covered the common types of fraud such

as impersonation fraud and the interception of emails. Lots

of personal experiences were shared within the groups.

The round table, smaller workshop format in each room

promoted a more informal environment with much

discussion and sharing of experiences. Lots of questions

were asked of our expert trainers with some attendees

complaining that the sessions were not long enough!

Many thanks to Carl Jones of MD Law, Darren Myers

of PwC, South Yorkshire Police, EIS and all attending

members and guests for making the evening a great success.

Author: Paula Uttley MCICM(Grad), Vice Chair & Treasurer

of Sheffield and District Branch.


Cr£ditWho?

CICM Directory of Services

COLLECTIONS

Controlaccount

Compass House, Waterside, Hanbury Road, Bromsgrove,

Worcestershire B60 4FD

T: 01527 386 610

E: sales@controlaccount.com

W: www.controlaccount.com

Controlaccount has been providing efficient, effective, and

ethical pre-legal debt recovery for over forty years. We help

our clients to improve internal processes and increase cash

flow, whilst protecting customer relationships and established

reputations. We have long-standing partnerships with leading,

global brand names, SMEs and not for profits. We recover

over 40,000 overdue invoices each month, domestically

and internationally, on a no collect, no fee arrangement.

Other services include credit control and dunning services,

international and domestic trace and legal recoveries. All our

clients have full transparency on any accounts placed with us

through our market leading cloud-based management portal,

ClientWeb.

Guildways

T: +44 3333 409000

E: info@guildways.com

W: www.guildways.com

Guildways is a UK & International debt collection specialist with over

25 years experience. Guildways prides itself on operating to the

highest ethical standards and professional service levels. We are

experienced in collecting B2B and B2C debts. Our service includes:

• A complete No collection, No Fee commission based service

• 10% plus VAT commission for UK debts

• Commission from 22% plus VAT for International debts

• 24/7 online access to your cases through our CaseManager portal

• Direct online account-to-account payments, to speed up

collections and minimise costs

If you are unable to locate your customer, we also offer a no trace,

no fee, trace and collect service.

For more information, visit: www.guildways.com

MIL Collections Ltd.

Palace Building, Quay Street, Truro,TR1 2HE

M: 07961578739 E: GaryL@milcollections.co.uk

W: www.milai.co.uk

From our dedicated office in Truro, Cornwall, our team of over

50 staff work tirelessly to ensure our clients expectations are not

just met but exceeded.

We offer clients an experienced, dedicated and regulated

collection service. From small sundry invoices through to

complex property cases and overseas jurisdictions we can

help our clients recover what is due to them in a fair and timely

manner.

Added to the ISO certification, MIL is a pioneer bringing AI

to the collections world with a platform dedicated to ensure

customers are treated fairly and clients work is managed

effectively.

COLLECTIONS LEGAL

Lovetts Solicitors

Lovetts, Bramley House, The Guildway,

Old Portsmouth Road,

Guildford, Surrey, GU3 1LR

T: 01483 347001

E: info@lovetts.co.uk

W: www.lovetts.co.uk

With more than 25yrs experience in UK & international business

debt collection and recovery, Lovetts Solicitors collects £40m+

every year on behalf of our clients. Services include:

• Letters Before Action (LBA) from £1.50 + VAT (successful in

86% of cases)

• Advice and dispute resolution

• Legal proceedings and enforcement

• 24/7 access to your cases via our in-house software solution,

CaseManager

Don’t just take our word for it, here’s some recent customer

feedback: “All our service expectations have been exceeded.

The online system is particularly useful and extremely easy to

use. Lovetts has a recognisable brand that generates successful

results.”

CREDIT DATA AND ANALYTICS

CoCredo

Missenden Abbey, Great Missenden, Bucks, HP16 0BD

T: 01494 790600

E: customerservice@cocredo.com

W: www.cocredo.co.uk

For over 20 years, CoCredo, one of the UK's leading Credit

Report companies, has helped thousands of business customers

minimise their bad debt. Our data is compiled and constantly

updated from various prominent UK and international suppliers,

encompassing 235 countries, so our clients can access the latest

information in an easy-to-read report. Our product and service

solutions are tailored to meet our clients' needs, including marketleading

Dual Reports and integrated XML solutions, monitoring,

and our D.N.A. Credit Risk Management tool that reduce

costs and boost cashflow.Since 2014, we have been finalists

and winners of Small Business and Credit Awards. Our clients

appreciate our involvement in their customer journey, resulting in a

99% client retention rate.

DataTrace UK

Compass House, Waterside, Hanbury Road, Bromsgrove,

Worcestershire B60 4FD

T: 01527 386 626

E: info@datatraceuk.com

W: www.datatraceuk.com

DataTrace is recognised as one of the leading trace agencies in

the UK. Our client portfolio includes leading debt collection and

enforcement firms, utilities companies, housing associations,

law practices and universities. Providers of volume electronic

trace services, enhanced desktop tracing, employment and

international tracing, propensity to pay reporting, address and

telephone appending, and pre-litigation reports. We can build

a bespoke workflow to meet your data needs. All our data is

validated and priced competitively.

CREDIT DATA AND ANALYTICS

TOP SERVICE

MINIMISE DEBT

Top Service Ltd

Top Service Ltd, 2&3 Regents Court, Far Moor Lane

Redditch, Worcestershire. B98 0SD

T: 01527 503990

E: membership@top-service.co.uk

W: www.top-service.co.uk

MAXIMISE C ASH

The only credit information and debt recovery service provider

specifically for the UK construction industry. Our payment

experiences are the most up to date credit information available

and enable construction businesses to confidently assess credit

risk & make the best, most informed credit decisions. Coupled

with our range of effective debt recovery solutions, quite simply

our members stay one step ahead & experience less debt &

more cash.

CREDIT MANAGEMENT SOFTWARE

Credica Ltd

Building 168, Maxell Avenue, Harwell Oxford, Oxon. OX11 0QT

T: 01235 856400E: info@credica.co.uk W: www.credica.co.uk

Our highly configurable and extremely cost effective Collections

and Query Management System has been designed with 3

goals in mind:

•To improve your cashflow • To reduce your cost to collect

• To provide meaningful analysis of your business

Evolving over 15 years and driven by the input of 1000s of

Credit Professionals across the UK and Europe, our system is

successfully providing significant and measurable benefits for

our diverse portfolio of clients.

We would love to hear from you if you feel you would benefit

from our ‘no nonsense’ and human approach to computer

software.

Corcentric

Information: Ali Hassan| 020 317 71713

ahassan@corcentric.com | corcentric.com

Social media links: https://www.linkedin.com/company/

corcentric/, https://x.com/corcentric?lang=en-GB

Membership can go to: Lee Allen lallen@corcentric.com

Jonathan BlackBurn jblackburn@corcentric.com

Ali Hassan ahassan@corcentric.com

About Corcentric: Corcentric is a leading global provider

of best-in-class procurement and finance solutions. We

offer a unique combination of technology and payment

solutions complemented by robust advisory and managed

services. Corcentric reduces stress and increases savings

for procurement and finance business leaders by forming a

strategic partnership to diagnose pain points and deliver tailormade

solutions for their unique challenges. For more than two

decades, we've been a trusted partner who delivers proven

results. To learn more, please visit www.corcentric.com.


FOR ADVERTISING INFORMATION OPTIONS

AND PRICING CONTACT

paul.heitzman@cplone.co.uk – 01727 739 196



ENFORCEMENT

ESKER

Sam Townsend Head of Marketing

Northern Europe Esker Ltd.

T: +44 (0)1332 548176 M: +44 (0)791 2772 302

W: www.esker.co.uk LinkedIn: Esker – Northern Europe

Twitter: @EskerNEurope blog.esker.co.uk

Esker’s Accounts Receivable (AR) solution removes the

all-too-common obstacles preventing today’s businesses

from collecting receivables in a timely manner. From credit

management to cash allocation, Esker automates each step of

the order-to-cash cycle. Esker’s automated AR system helps

companies modernise without replacing their core billing and

collections processes. By simply automating what should

be automated, customers get the post-sale experience they

deserve and your team gets the tools they need.

TCN

T: +44 (0) 800-088-5089

E : spencer.taylor@tcn.com

W: www.tcn.com

TCN is a leading provider of cloud-based call centre technology

for enterprises, contact centres, BPOs, and collection

agencies worldwide. Founded in 1999, TCN combines a deep

understanding of the needs of call centre users with a highly

affordable delivery model, ensuring immediate access to robust

call centre technology, such as SMS, email, predictive dialler,

IVR, call recording, and business analytics required to optimise

operations while adhering to callers’ requests.

Its “always-on” cloud-based delivery model provides customers

with immediate access to the latest version of the TCN solution,

as well as the ability to quickly and easily scale and adjust to

evolving business needs. TCN serves various Fortune 500

companies and enterprises in multiple industries, including

newspaper, collection, education, healthcare, automotive,

political, customer service, and marketing. For more information,

visit www.tcn.com or follow on Twitter @tcn.

Court Enforcement Services

Samuel Evans – Director of Business Development

T: 07759 122503

E : s.evans@courtenforcementservices.co.uk

W: www.courtenforcementservices.co.uk

Court Enforcement Services is the market leading and fastest

growing High Court Enforcement company. Since forming in

2014, we have managed over 100,000 High Court Writs and

recovered more than £187 million for our clients, all debt fairly

collected. We help lawyers and creditors across all sectors to

recover unpaid CCJ’s sooner rather than later. We achieve 39%

early engagement resulting in market-leading recovery rates.

Our multi-award-winning technology provides real-time reporting

24/7. We work in close partnership to expertly resolve matters

with a fast, fair and personable approach. We work hard to

achieve the best results and protect your reputation.

Genius Software Solutions

T: +44 (0) 141 280 0275

E: sales@geniusssl.com

W: www.geniusssl.com

Genius provides solutions designed to enhance your customer

engagement with compliance in full focus; our team have decades

of operational experience in the Debt & BPO space.

As a global outreach partner our technology drives compliance

and operational efficiency to help your business thrive.

• Streamline Collections, Payments & Asset Recovery, whether this

be in-house or within a BPO setting with our Adept platform.

• Enhance customer engagement with our cloud-based

omnichannel platform, Commpli.

We've helped businesses worldwide enhance efficiency, optimise

workflows, and respond to the dynamic needs of a changing

marketplace.

My DSO Manager

22, Chemin du Vieux Chêne,

Bâtiment D, Meylan, FRANCE

T: +33 (0)458003676

E: contact@mydsomanager.com

W: www.mydsomanager.com

My DSO Manager is an all-in-one intelligent SaaS accounts

receivable and credit management system that provides

real-time insight and scalability from SMEs to international multientity

companies. It helps AR analysts, accounting or finance

managers, and any client-facing employee, manage risk and

maximize cash collection.

It can swiftly integrate any kind of data from any ERP and

implement any customization due to its creative, competent IT

teams that are headquartered inside the firm and collaborate

closely with support employees, many of whom were formerly

credit managers at big corporations.

The feature-rich functions, automated reminders, alerts, and

numerous services connected to the solution, such as EDM/

CRMs/insurance/e-payment/BI platforms etc., along with

a reasonable pricing system, have simplified the credit-tocash

cycle by monitoring daily KPIs like DSO, aging balance,

overdues/past-dues, customer behavior, and cash forecast.

My DSO Manager's worldwide clientele are its real

ambassadors, who assist the company in expanding on an

ongoing basis.

Invevo

Daniel Gregory

T: 07843591646 E : daniel@invevo.com

W: www.invevo.com

Invevo is a fully integrated, cloud-based provider of credit

management and accounts receivable automation solutions,

offering dynamic features to optimise operational efficiency and

improve cash performance.

Our flexible platform empowers organisations to:

- Automate the manual and repetitive work allowing your team to

focus on the value-added activities

- Discover financial and operational insights through beautiful,

data-rich dashboards

- Test and adjust workflow strategies immediately through zerocost

configuration

- Mitigate customer global risk through integrated credit reporting

via credit agencies or open banking

Invevo integrates with your existing systems (ERP, CRM,

accounting, billing) to present the insights you need to make

strategic decisions through one system that acts as a single

source of truth. Access the undiscovered analytics and improve

performance across your portfolio through data-driven actions.

DEBT & ASSET RECOVERY SERVICE

Shakespeare Martineau

E: jayne.gardner@shma.co.uk,

W: www.shma.co.uk

T 01789 416440

Shakespeare Martineau provides expert debt and asset

recovery services across various sectors, including energy,

manufacturing and Government. Our team supports regulated

and unregulated debt, acting as an extension of internal

collections when needed. We prioritise keeping client costs low

while empathetically engaging with debtors. Our 70+ experts

offer cradle-to-grave B2B and B2C collections, transparent

fee plans, bespoke service, flexible case management, and

additional support like training, advice, litigation and mediation.

High Court Enforcement Group Limited

Client Services, Helix, 1st Floor, Edmund St, Liverpool, L3 9NY

T: 08450 999 666

E: clientservices@hcegroup.co.uk

W: hcegroup.co.uk

Why choose us?

With over £400 million recovered for our clients, our track

record is second to none. We have enforced over 320,000 writs

of control and are committed to providing you with a unique

and personalised service. Our enforcement agents cover all of

England and Wales, are trained to the highest standards and

each holds strong local knowledge of the areas they cover.

Our clients rate our service extremely highly, with a 99%

satisfaction score in our most recent annual survey.

You can rely on us, the largest independent High Court

enforcement company in the UK, with the highest number of

HCEOs and a wealth of experience across all our teams.

ENGAGEMENT

CFH Docmail

T: 01761 416311

E: info@cfh.com

W: www.cfh.com

With over 45 years of experience in supporting organisations in

the successful delivery of multi-channel communications, CFH

are the innovative and trusted partner for driving engagement

and achieving measurable results.

Combining proven expertise, the right accreditations and

industry driven communication solutions including Docmail the

leading hybrid mail solution, CFH have the perfect blend of

solutions to help you engage offline, online or the perfect blend

of the two.

FINANCIAL PR

Gravity Global

Floor 6/7, Gravity Global, 69 Wilson St, London, EC2A 2BB

T: +44(0)207 330 8888. E: sfeast@gravityglobal.com

W: www.gravityglobal.com

Gravity is an award winning full service PR and advertising

business that is regularly benchmarked as being one of the

best in its field. It has a particular expertise in the credit sector,

building long-term relationships with some of the industry’s

best-known brands working on often challenging briefs. As

the partner agency for the Credit Services Association (CSA)

for the past 22 years, and the Chartered Institute of Credit

Management since 2006, it understands the key issues

affecting the credit industry and what works and what doesn’t in

supporting its clients in the media and beyond.



Cr£ditWho?


FOR ADVERTISING INFORMATION

OPTIONS AND PRICING CONTACT

paul.heitzman@cplone.co.uk

INSOLVENCY

PAYMENT SOLUTIONS

RECRUITMENT

Red Flag Alert Technology Group Limited

49 Peter Street, Manchester, M2 3NG

T: 0330 460 9877

E: sales@redflagalert.com

W: www.redflagalert.com

The UK’s No1 Insolvency Score is available as platform

designed to help businesses manage risk and achieve growth

using real-time data. The only independently owned UK credit

referencing agency for businesses. We have modernised the

way companies consume data, via Graph QL API and apps for

many CRM / ERP systems to power businesses decisions with

the most important data taken in real-time feeds, ensuring our

customers are always the first to know.

Red Flag Alert has a powerful portfolio management tool

enabling you to monitor all your customers and suppliers so

you and your teams can receive email alerts on data events

i.e. CCJ, Petitions, Accounts, Directors, amongst 84 alerts

produced and tailored to your business.

Red Flag Alert works towards growing and protecting

businesses using advanced machine learning and AI

technology data to provide businesses with information

to deliver best in class sales, credit risk management and

compliance.

Menzies LLP

T: +44 (0)2073 875 868 - London

T: +44 (0)2920 495 444 - Cardiff

W: Menzies LLP.co.uk/creditor-services

Our Creditor Services team can advise on the best way for you

to protect your position when one of your debtors enters, or

is approaching, insolvency proceedings. Our services include

assisting with retention of title claims, providing representation

at creditor meetings, forensic investigations, raising finance,

financial restructuring and removing the administrative burden

– this includes completing and lodging claim forms, monitoring

dividend prospects and analysing all Insolvency Reports and

correspondence.

For more information on how the Menzies LLP Creditor

Services team can assist, please contact Bethan Evans,

Licensed Insolvency Practitioner, at bevans@Menzies LLP.

co.uk or call +44 (0)2920 447 512.

PAYMENT SOLUTIONS

American Express

76 Buckingham Palace Road,

London. SW1W 9TQ

T: +44 (0)1273 696933

W: www.americanexpress.com

American Express is working in partnership with the CICM

and is a globally recognised provider of payment solutions

to businesses. Specialising in providing flexible collection

capabilities to drive a number of company objectives including:

• Accelerate cashflow • Improved DSO • Reduce risk

• Offer extended terms to customers

• Provide an additional line of bank independent credit to

drive

growth • Create competitive advantage with your customers

As experts in the field of payments and with a global reach,

American Express is working with credit managers to drive

growth within businesses of all sectors. By creating an additional

lever to help support supplier/client relationships American

Express is proud to be an innovator in the business payments

space.

Key IVR

T: +44 (0) 1302 513 000 E: sales@keyivr.com

W: www.keyivr.com

Key IVR are proud to have joined the Chartered Institute of

Credit Management’s Corporate partnership scheme. The

CICM is a recognised and trusted professional entity within

credit management and a perfect partner for Key IVR. We are

delighted to be providing our services to the CICM to assist

with their membership collection activities. Key IVR provides

a suite of products to assist companies across the globe with

credit management. Our service is based around giving the

end-user the means to make a payment when and how they

choose. Using automated collection methods, such as a secure

telephone payment line (IVR), web and SMS allows companies

to free up valuable staff time away from typical debt collection.

Bottomline Technologies

115 Chatham Street, Reading

Berks RG1 7JX | UK

T: 0870 081 8250 E: emea-info@bottomline.com

W: www.bottomline.com/uk

Bottomline Technologies (NASDAQ: EPAY) helps businesses

pay and get paid. Businesses and banks rely on Bottomline for

domestic and international payments, effective cash management

tools, automated workflows for payment processing and bill

review and state of the art fraud detection, behavioural analytics

and regulatory compliance. Businesses around the world depend

on Bottomline solutions to help them pay and get paid, including

some of the world’s largest systemic banks, private and publicly

traded companies and Insurers. Every day, we help our customers

by making complex business payments simple, secure and

seamless.

Quadient AR by YayPay

T: +44 20 8502 8476

E: r.harash@quadient.com

W: www.quadient.com/en-gb/ar-automation

Quadient AR by YayPay makes it easy for B2B finance teams

to stay ahead of accounts receivable and get paid faster – from

anywhere. Integrating with your existing ERP, CRM, accounting

and billing systems, YayPay organizes and presents real-time data

through meaningful, cloud-based dashboards. These increase

visibility across your AR portfolio and provide your team with a

single source of truth, so they can access the information they

need to work productively, no matter where they are based.

Automated capabilities improve team efficiency by 3X and

accelerate the collections process by making communications

customizable and consistent. This enables you to collect cash

up to 34 percent faster and removes the need to add additional

resources as your business grows.

Predictive analytics provide insight into future payer behavior to

improve cash flow management and a secure, online payment

portal enables customers to access their accounts and pay at any

time, from anywhere.

DCS

T: 01656 663 930

E: Jason@creditpro.co.uk

W: www.dcscreditjobs.co.uk

DCS is a specialist Credit Management Recruitment

Company with over 18 years of experience, supplying

Credit Professionals at all levels.

We supply high calibre candidates to our clients within the

FinTech, Credit, Collections, Enforcement and Legal Industry.

We also cover many different sectors listed below

Utilities Gas / Electric / Water / Collections

International Collections & Credit Insurance

DCA Collections, Legal, Enforcement & Asset Recovery

Credit Information, Credit Management Software, Data &

Analytics, Invoice Factoring and Invoice Discounting,

Insolvency, Payment Solutions, Parking, Banking.

Hays Credit Management

107 Cheapside, London, EC2V 6DN

T: 07834 260029

E: karen.young@hays.com

W: www.hays.co.uk/creditcontrol

Hays Credit Management is working in partnership with the

CICM and specialise in placing experts into credit control jobs

and credit management jobs. Hays understands the demands

of this challenging environment and the skills required to thrive

within it. Whatever your needs, we have temporary, permanent

and contract based opportunities to find your ideal role. Our

candidate registration process is unrivalled, including faceto-face

screening interviews and a credit control skills test

developed exclusively for Hays by the CICM. We offer CICM

members a priority service and can provide advice across a wide

spectrum of job search and recruitment issues.

PORTFOLIO

CREDIT CONTROL

Portfolio Credit Control

1 Finsbury Square, London. EC2A 1AE

T: 0207 650 3199

E: recruitment@portfoliocreditcontrol.com

W: www.portfoliocreditcontrol.com

Portfolio Credit Control, a 5* Trustpilot rated agency, solely

specialises in the recruitment of Permanent, Temporary &

Contract Credit Control, Accounts Receivable and Collections

staff including remote workers. Part of The Portfolio Group,

an award-winning Recruiter, we speak to Credit Controllers

every day and understand their skills meaning we are perfectly

placed to provide your business with talented Credit Control

professionals. Offering a highly tailored approach to recruitment,

we use a hybrid of face-to-face and remote briefings, interviews

and feedback options. We provide both candidates & clients

with a commitment to deliver that will exceed your expectations

every single time.

Cr£ditWho?


For advertising information options

and pricing contact

paul.heitzman@cplone.co.uk 01727 739 196


View our digital version online at www.cicm.com

Log on to the Members’ area, and click on the tab

labelled ‘Credit Management magazine’

Just another great reason to be a member

Credit Management is distributed to the entire UK and international

CICM membership, as well as additional subscribers

Brave | Curious | Resilient

www.cicm.com | +44 (0)1780 722900 | editorial@cicm.com

Credit Management magazine December 2024

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