5 firms removed and 12 suspended from Prompt Payment Code
01/05/2019 / Comments 0
After failing to pay their suppliers on time, a total of 17 companies have been either removed or suspended from the Prompt Payment Code.
The aim of the Prompt Payment Code, monitored by the Chartered Institute of Credit Management (CICM), is to provide assurances for suppliers and in particular small businesses that a company commits to paying invoices on time.
In order for companies to gain this stamp of approval, they must pledge to adhere to a guideline when it comes to paying invoices, that states that 95% of all supplier invoices are to be paid within 60 days.
With large businesses now having to publicly report on their payment practices, the CICM has been reviewing these companies in a search for non-compliance.
The 5 companies who will be removed from the code are:
- BHP Billiton – a global resources business
- DHL – a global logistics business
- GKN Plc – a multinational aerospace and automotive components business
- John Sisk & Son Limited – an international construction company
- Twining and Company Limited – a purchaser and seller of tea, coffee and other beverages
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A further 12 companies were identified as non-compliant but have committed to make changes agreed with the CICM. They have been suspended until they can demonstrate these changes and prove that their actions have bought them back in line with the Code.
These companies are:
- Atos IT Services UK&I – an IT services business and main UK subsidiary of Atos SE
- Balfour Beatty Plc – an international infrastructure group
- British Sugar UK – a British producer of sugar for the UK food market
- Costain Limited – a construction and engineering company
- Engie Services Limited – a facilities management services company, part of Engie Group
- Interserve Construction – a construction company owned by Interserve Group Limited
- Kellogg Brown & Root Limited – a facilities management and construction engineering company, part of KBR Inc.
- Laing O’Rourke – an international engineering business
- Persimmon Homes Limited – a UK house building company
- Rolls-Royce Plc – an engineering business focused on power and propulsion systems
- SSE – electrical and telecoms provider
- Vodafone Limited – a telecoms company, part of the multinational Vodafone Group Limited
However, there are companies already making changes in the right direction. The Go-Ahead Group Plc, a passenger transport provider, was able to file data to show that it had met the criteria for the Code, and so was re-instated.
CICM’s Chief Executive, Philip King, said: “The Board is disappointed with the actions of a minority who continue to treat their suppliers unfairly and has no satisfaction in having to name them publicly.
“Conversely, we are encouraged by the actions taken by The Go-Ahead Group which has now positively engaged with the Board and given us the reassurances we need to allow them to remain a Signatory to the Code. We will continue to monitor their position to ensure future reported data shows the expected improvements and compliance.
“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.”
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