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NISBETS PLC

Company number: 01693112

Reporting period:
1 January 2020 to 30 June 2020


This information is as reported by the business, and responses are in their own words.

This report was filed on 28 July 2020

and approved by Stephen Marshall

Payment statistics

Average time taken to pay invoices: 58 days

Invoices paid:

  • within 30 days: 8%
  • in 31 to 60 days: 48%
  • in 61 days or more: 44%

Invoices due but not paid within agreed terms: 73%

Payment terms

Shortest standard payment periods

30 days

Longest standard payment period

60 days

Standard payment terms

As standard, Nisbets PLC pay its suppliers and distributors no later than 60 days from the date of the invoice received. Variations to the standard payment terms are negotiated with certain suppliers by exception and are agreed by both parties.

Were there any changes to the standard payment terms in the reporting period?

Answer not provided

Were suppliers notified or consulted about these changes before they were made?

N/A

Maximum contractual payment period agreed

96 days

The maximum contractual term available is 65 days following the month end of the invoice date; no qualifying payments or invoices with these terms arose in the period. Maximum contractual terms for payments in this period are 60 days following the month end of the invoice date, which gives a maximum payment period of 91 days. There are 1,170 invoices with a value of £3,302,813 due for payment in this period with these terms.

Any other information about payment terms

During H1 2020 Nisbets trade was significantly impacted by the COVID-19 outbreak, as all trading regions went into lockdown. In order to mitigate against resulting working capital pressures, Nisbets reduced purchases to a critical level only, and in the majority of cases, with the agreement of suppliers, delayed payment terms beyond standard contractual agreements. As a result, a greater number of payments were made on a 60 day term, rather than a 30 day term. For the purposes of this reporting, we have disclosed payments made outside the "normal" payment terms as late, even though extended terms were in agreement with the supplier, as it was not possible to update purchase ledger systems with reduced resource to capture all changes in these exceptional circumstances. The UK government lifted lockdown restrictions in May/June 2020, and Nisbets has reverted back to normal payment procedures, which we expect to be reflected in our H2 reporting.

Dispute resolution process

Nisbets PLC have a dedicated Purchase Ledger team with specific accounts allocated to individuals in that team, allowing suppliers a direct, named, point of contact. In the event of disputed charges, our policy is to investigate the invoice in question, such as inspecting Goods Received Notes depending on its nature, and communicate directly with the supplier to ensure timely resolution. Dependent on the specific contract terms, we would potentially withhold payment on the disputed portion of the invoice, or raise a debit note for those items until the query is resolved.

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 Prompt 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.

No

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.

No

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