Wednesday 1st May, 2019
Based on the new Payment Practices Reporting data that large businesses must publicly report, the Chartered Institute of Credit Management (CICM) is reviewing whether businesses are meeting the standards of the Code and paying their suppliers promptly.
The first phase of these reviews has identified 17 businesses to be removed or suspended, with more removals and suspensions expected in the second phase of review currently underway.
Five companies have been removed from the Code for non-compliance and not providing a plan for how they will meet the terms of the Code include:
• BHP Billiton
• GKN Plc
• John Sisk & Son Limited
• Twining and Company Limited
The Go-Ahead Group Plc a passenger transport provider has been re-instated to the Code after filing data to show that it has been paying 95% of all invoices within 60 days for the last reported period.
Twelve businesses have been suspended from the PPC, for not paying their suppliers in line with the Code, but they have committed to make changes to meet the standards of the Code and pay suppliers promptly:
• Atos IT Services UK&I
• Balfour Beatty Plc
• British Sugar UK
• Costain Limited
• Engie Services Limited
• Interserve Construction
• Kellogg Brown & Root Limited
• Laing O’Rourke
• Persimmon Homes Limited
• Rolls-Royce Plc
• Vodafone Limited
Companies are already taking action to improve, which is welcomed and supported by CICM. For example, Interserve Construction has improved its performance based on an action plan agreed with the CICM, which has seen the business reduce the number of payments over 60 days by 10% over the second half of last year; the company is continuing to improve towards compliance over the next six months.
Businesses suspended from the Code are invited to produce an action plan setting out how they will achieve compliance with the Code within an agreed period. When they have achieved compliance their status as a Code signatory will be reinstated.
Mr Philip King said: “As part of our work driving culture change to end late payments, we will continue to challenge signatories to the Code if the obligatory Payment Practice Reporting data suggests that their practices are not compliant with the Code.”
Small Business Commissioner Paul Uppal added: “As a Prompt Payment Code Compliance Board member, I will continue to support Philip King and the board in removing or suspending non-compliant signatories from the code. It is essential the code has credibility and demonstrates a commitment to ensure small businesses are treated fairly.”