PHILIPS ELECTRONICS UK LIMITED
Company number: 00446897
Reporting period:
1 January 2026 to 30 June 2026
Report filed on:
30 July 2026
Approved by:
Jonathan Coles
Contracts and payments
Do any of this business's construction contracts with its suppliers include retention clauses? Yes
Payment statistics
Average time taken to pay invoices: 19 days
Total value paid:
- within 30 days: £142,837,955 (81%)
- in 31 to 60 days: £16,399,096 (9%)
- in 61 days or more: £18,015,321 (10%)
Invoices paid:
- within 30 days: 89%
- in 31 to 60 days: 4%
- in 61 days or more: 7%
Late and disputed:
- total value of payments due in the reporting period which have not been paid within the agreed period: £9,875,435
- payments due in the reporting period which have not been paid within the agreed period: 1%
- not made in the reporting period due to a dispute: 1%
Payment terms
Shortest standard payment periods
0 days
Longest standard payment period
120 days
Standard payment terms
Philips standard Global Payment Terms are 60 or 65 days end of month although deviations can be made from this on a case by case basis with agreement from the business dependent on the nature of the product or service received from suppliers.
84% of payment transactions in the period were intergroup transactions on immediate or under 30 day payment terms. These are typically cleared via cash pooling without transmission of monies.
The most frequently used terms of payment on non-intragroup transactions in the period were as follows:
Immediate 0%
within 30 days of document date 56%
within 60 days of document date 38%
within 90 days of document date 5%
Other 1%
Were there any changes to the standard payment terms in the reporting period?
No
Were suppliers notified or consulted about these changes before they were made?
N/A
Maximum contractual payment period agreed
90 days
Philips standard Global Payment Terms are 60 or 65 days end of month although deviations can be made from this on a case by case basis with agreement from the business dependent on the nature of the product or service received from suppliers. These may be changed after consultation and agreement with suppliers in the ordinary course of business.
Any other information about payment terms
No further comment provided
Retention clauses
How does this business use retention clauses?
All construction contracts include retention clauses.
Does this business only use retention clauses in construction contracts above a specific contract sum?
No
Does this business use a standard percentage rate in retention clauses?
Yes: 3%
Does this business apply retention clause practices that are no more onerous than those applied to it on the same project?
Yes:
Our Sub-Contractor Contracts are ‘Back to Back’ with the Main Contract conditions with our Customers.
Releasing money under a retention clause
Process for releasing money this business has deducted or retained under a retention clause
Once a project reaches practical completion, half of the retention is released. Then 12 months later, following a further valuation submitted to the customer for approval and sign-off confirming no snags or defects are outstanding, the final half of retention is released.
Is the money released in stages?
Yes:
1.5% is released at practical completion & the remaining 1.5% is released after 12 Months to cover defects.
Amount retained from suppliers in the reporting period
Amount retained stated as a percentage of the money retained from this business by its clients
0%
Amount retained stated as a percentage of the total construction payments made by this business
3%
Dispute resolution process
In case of payment queries suppliers should contact the Vendor Query Team (VQ) based on the appropriate business unit advised per the provided Purchase Order as follows:
vq.respironics.uk@philips.com (For Business Units RIU2, RIU3)
VQ.CL.UK@philips.com (For Business Units GB11, GB59, GB71)
VQ.HC.UK@philips.com (For Business Units GB90, GB9A, GBY1)
VQ teams will check the status of the invoice and take an action according to the results.
In case of escalation they reach out to a Payment and Purchasing team specialist who will liaise with Finance for approval.
Other payment information
Has this business signed up to a code of conduct or standards on payment practices? If so, which?
For example, signatories to The Fair Payment Code must commit to paying 95% of their invoices within 60 days.
No, this business has not signed up to a code of conduct or standards on payment practices.
Does this business offer e-invoicing in relation to qualifying contracts?
This is where suppliers can electronically submit and track invoices. It's not just allowing suppliers to email them an invoice.
Yes
Does this business offer supply chain finance?
This is where a supplier who has submitted an invoice can be paid by a third-party finance provider earlier than the agreed payment date. The business would then pay the finance provider the invoiced sum.
Yes
Under its payment practices and policies, can this business deduct sums from payments under qualifying contracts as a charge for remaining on a supplier list?
No
During the reporting period, did the business deduct sums from payments as a charge for remaining on a supplier list?
No