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LEONARDO UK LTD

Company number: 02426132

Reporting period:
1 July 2022 to 31 December 2022


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

This report was filed on 25 January 2023

and approved by Clive Higgins

Payment statistics

Average time taken to pay invoices: 26 days

Invoices paid:

  • within 30 days: 74%
  • in 31 to 60 days: 19%
  • in 61 days or more: 7%

Invoices due but not paid within agreed terms: 15%

Payment terms

Shortest standard payment periods

0 days

Longest standard payment period

30 days

Standard payment terms

Supplier Payment Terms Policy The purpose of this policy is to provide clear guidelines to employees, suppliers and all other stakeholders in respect of the payment policies of Leonardo UK Ltd. The over-riding principle when writing the policy is to ensure suppliers are treated fairly, and that the company and our suppliers both benefit from reasonable terms of payment, that are both achievable and do not adversely affect cash-flow for either party. We therefore endeavour to ensure: • The company aims to ensure suppliers are paid on time within the terms agreed at the outset of the contract. • The company will not attempt to change the payment terms retrospectively without good reason. • The company will not change practice on the length of payment for smaller companies on unreasonable grounds. • The company will provide suppliers with clear and easily accessible guidance on payment procedures. • The company provides a method for dealing with complaints and disputes in relation to payment processing, and a method for escalation of the before-mentioned complaint. • The company will endeavour to advise if there is a reason an invoice may not be settled within the agreed terms. • The company endeavours to comply with all applicable law and regulation, in relation to supplier payments. • The company maintains a Corporate Social Responsibility policy, which applies to all company activity including payments. • The company provides a method of electronic invoicing, either by fax or email transmission or by use of an invoicing portal. Default Payment Terms All Purchase Orders (PO’s) placed on Suppliers shall include our standard 30 days payment terms from receipt of invoice, as defined in our General conditions of Purchase. • The company recognises that on some contracts, that there is an overarching pay when paid clause present which takes precedence over terms detailed on purchase orders. • PO (or Agreement) milestone payments in advance of Supplier delivery, shall not be permitted unless exceptional circumstances apply. • If an invoice is becoming due and approved it can be expected to be included on the next payment run, which occurs weekly for GBP, and twice a month for Foreign currencies.

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

90 days

No further comment provided

Any other information about payment terms

Other Information on payment terms & calculation methods The supplier invoice date has been used instead of the invoice receipt date, in instances where we currently have no other consistent reliable method of recording the date of receipt. Where invoices were settled in full through the raising of a credit note, the credit note and matching invoice were not included in the payment statistics. If there is a partial match then the remainder of the invoice is included in the payment statistics. We make payment either through bank settlements or by the use of corporate purchasing cards. If the purchasing card was used to make payment then same day receipt is assumed. Invoices relating to intercompany activity with Leonardo SpA have been excluded from the statistics. These follow a different payment process due to additional factors arising from circumstances outside of our direct control. i.e. Italian Military licencing.

Dispute resolution process

The company is committed to dealing with suppliers in a fair, honest and professional manner regarding any payment disputes. If a supplier has any dispute or concern regarding a payment, their first contact should be with their procurement relationship contact within the business. In their absence, an alternative route would be to contact the Leonardo UK Ltd accounts payable department. In the event that those involved are unable to find a solution, then the issue can be escalated through the relevant managerial levels with the business.

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.

Yes, this business has signed up to: Prompt Payment Code

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