Eleven firms – including several big names within the military, aerospace and defence sectors – have been suspended from the Prompt Payment Code for failing to pay suppliers on time, the Chartered Institute of Credit Management (CICM) announced today.
BAE Systems (Operations) Limited, Leonardo MW Limited, and Smiths Detection are among those who have failed to honour their Code commitment to pay 95% of all supplier invoices within 60 days. The Code is administered by the CICM, who are independent from government, on behalf of the Department for Business, Energy and Industrial Strategy (BEIS). Signatories pledge to uphold its best practice for payment standards to end the culture of late payment.
Shell U.K. Limited and Bottomline Technologies Limited are also on the list, and both failed to engage with the CICM within the deadline set and submit action plans towards achieving compliance.
The full list of businesses named are:
Businesses suspended in January 2020 and no action plan received within the deadline:
- Bottomline Technologies Limited
- Shell U.K. Limited
Businesses suspended in January 2020 and action plan received
- BAE Systems (Military Air) Overseas Limited
- BAE Systems (Operations) Limited
- Cereform Limited
- F M Conway Limited
- Leonardo MW Limited
- Macdonald Humfrey (Automation) Limited
- Rhodar Limited
- Sita Information Networking Computing UK Limited
- Smiths Detection
In addition to the 11 new businesses named today, a further 14 businesses have been re-instated to the Code since the last announcement in November 2019, proving the effectiveness of the PPC in positively changing payment behaviours. These are:
- British Sugar Plc
- Balfour Beatty Group Limited
- Engie Services Limited
- Ferrovial Agroman (UK) Limited
- Fujitsu Services Limited
- John Sisk & Son Limited
- Kier Construction Limited
- Kier Infrastructure and Overseas Limited
- Galliford Try Plc
- Laing O’Rourke
- Persimmon Homes Limited
- Smith & Nephew UK Limited
- J. Smith & Nephew Limited
- Vodafone Limited
The CICM’s Chief Executive Philip King, who chairs the Prompt Payment Code’s Compliance Board, and was recently appointed to the role of interim Small Business Commissioner said: “All 14 businesses have demonstrated a substantial improvement in payment performance that warrants re-instatement to the Code. Since the policy was changed in 2019 to begin naming those who had failed to honour their Code commitments, 55 businesses have been suspended and 26 re-instated, including the 14 announced today.
“We will continue to challenge signatories to the Code if the obligatory Payment Practice Reporting data suggests that their practices are not compliant. We are encouraged by those who have already submitted action plans to achieve future compliance, and we are working closely with those businesses to support a better payment culture.”
Small Business Minister Kelly Tolhurst said: “A growing number of businesses have signed up to the Code, a great sign that we are starting to change the culture of late payments. It’s encouraging to see businesses reinstated after improving their practices, but we’ll continue to clamp down on late payment to support small businesses that are exploited by their larger partners.”
Notes/additional guidance for media:
For individual Payment Practice Reports: https://check-payment-practices.service.gov.uk/search
Full CSV extracts from Payment Practice Reporting data can be downloaded at: https://check-payment-practices.service.gov.uk/export
About the CICM:The Chartered Institute of Credit Management (CICM) is the largest recognised professional body in the world for the credit management community. Formed in 1939, the Institute was granted its Royal Charter in 2014. Representing all areas of the credit and collections lifecycle, it is the trusted leader and expert in its field providing its members with support, resources, advice, and career development as well as a networking and interactive community. In addition to its comprehensive suite of qualifications and learning opportunities, events and magazine ‘Credit Management’, the CICM administers the Prompt Payment Code for BEIS. Independently, and through collaboration with business organisations, it provides vital advice to businesses of all sizes on how best to manage cashflow and credit.