ROYAL MAIL GROUP LIMITED
Company number: 04138203
Reporting period:
30 March 2026 to 27 September 2026
Report filed on:
5 November 2026
Approved by:
Paul Ablin
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: 48 days
Total value paid:
- within 30 days: £612,000,000 (43%)
- in 31 to 60 days: £646,000,000 (46%)
- in 61 days or more: £151,000,000 (11%)
Invoices paid:
- within 30 days: 26%
- in 31 to 60 days: 52%
- in 61 days or more: 22%
Late and disputed:
- total value of payments due in the reporting period which have not been paid within the agreed period: £118,000,000
- payments due in the reporting period which have not been paid within the agreed period: 8%
- not made in the reporting period due to a dispute: 0%
Payment terms
Shortest standard payment periods
2 days
Longest standard payment period
92 days
Standard payment terms
Standard purchase order terms - payment processed on 45 days
Standard contract terms - payment processed on 90 days
Standard contract terms for owner drivers - payment processed on 7 days
Standard contract terms for couriers - payment processed on 14 days
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
122 days
No further comment provided
Any other information about payment terms
Royal Mail Group Limited has a discretionary approach to use of standard payment terms. In contracts where the standard terms are not appropriate, particularly those involving smaller suppliers, a shorter payment period may be agreed. For example, all owner driver contracts are processed on 7 days and couriers on 14 days. Royal Mail’s standard contract clause wording relating to payment terms states that invoices are processed for payment on the relevant day stated in the payment terms, i.e. on day 90 for standard contracts and day 45 for purchase orders
Please note, as anticipated the planned ERP system upgrade (SAP S/4HANA) which went live in September 2026 had a short-term impact on the timing of payment during this period. This upgrade directly affected process payments and orders. Impacts on suppliers were communicated to suppliers and managed individually as required. As of October 2026, the system upgrade is complete. Post implementation, the payment performance is expected to return to the improving trend seen through April-August 2026.
Retention clauses
How does this business use retention clauses?
Retention clauses are used in specific circumstances:
All our construction contracts are JCT (usually Minor Works) for which there is a standard retention clause. However, Royal Mail only enact retention clauses on contracts over the value of £250k (and this is often discretionary).
Does this business only use retention clauses in construction contracts above a specific contract sum?
Yes: £250,000
Does this business use a standard percentage rate in retention clauses?
Yes: 5%
Does this business apply retention clause practices that are no more onerous than those applied to it on the same project?
Yes:
There is no upstream application applied to Royal Mail regarding retention. Royal Mail however, as the Employer, does not impose retention obligations on its suppliers that exceed the retention rates agreed under its framework and use of JCT Contracts, unless there is a clear, documented commercial justification from the Consultant that is acting at the Employers Administrator on behalf of Royal Mail. As such, we ensure that we align with the JCT Contract Particulars. Royal Mail also uses proportionate alternatives where retention is nil (i.e. warranties).
Releasing money under a retention clause
Process for releasing money this business has deducted or retained under a retention clause
The 5% retained during the interim payments of a live construction contract is reduced to 2.5% at Practical Completion. The 2.5% retainer is then released 12 months later once the defect liability period has finished, subject to no outstanding defects in place requiring rectification.
Is the money released in stages?
Yes:
The 5% retained during the interim payments of a live construction contract is reduced to 2.5% at Practical Completion. The 2.5% retainer is then released 12 months later once the defect liability period has finished, subject to no outstanding defects in place requiring rectification.
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
4%
Dispute resolution process
Complaints or concerns should be raised in the first instance with the Group Payables team, for which all suppliers have contact details. The Group Payables team will escalate where applicable to the Head of Group Payables, and the Group Procurement team.
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