Thursday 17 July, 2019
The Chartered Institute of Credit Management (CICM) has announced that eighteen companies including BT Plc, British American Tobacco, and Centrica – have been suspended from the Prompt Payment Code for failing to pay suppliers on time.
Screwfix, Prudential, and various businesses of BAE Systems are also among those that have failed to honour their Code commitment to pay 95% of all supplier invoices within 60 days, according to CICM.
Signatories of the Prompt Payment Code pledge to uphold its best practice for payment standards to end the culture of late payment.
Businesses suspended from the Code are invited to produce an action plan that leads to a substantial improvement in payment performance and are reinstated to the Code as soon as they demonstrate compliance.
Out of the 18 suspended, all but one (AB World Foods) has already submitted action plans to achieve future compliance:
• Severfield (Design & Build) Ltd
• Stantec UK Limited
• British American Tobacco (Holdings) Limited
• Galliford Try PLC
• Alun Griffiths
• Ferrovial Agroman (UK) Limited
• BAE Systems Global Combat Systems Limited
• BAE Systems Applied Intelligence Limited
• BAE Systems (Oman) Limited
• Maintenance Management Limited
• Fujitsu Services Limited
• De La Rue Holdings plc
• Domino UK Ltd
• BT plc
Mr King said: “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 that of the 18 who have been suspended or removed today, all but one has already submitted action plans to achieve future compliance, and we are working closely with those businesses to support a better payment culture.”
The Code is administered by the CICM on behalf of the Department for Business, Energy and Industrial Strategy (BEIS).