“Who plans to be signing up to the Government’s Prompt Payment Code – or are companies accepting that they will be “named and shamed” in the New Year?”
We (Greggs plc) have signed up to it. We dont declare this in the AR, but we do say “Payments to suppliers are made in accordance with the Group’s normal terms of business except where varied terms and conditions are agreed with individual suppliers, in which case these prevail”. I think that’s all the code expects of you. Our normal terms are 45 days.
We are also outside of the FTSE 350 and are taking a wait and see approach for the time being.
We are outside the FTSE350, so BIS have not written directly to us – but it is something we are considering signing up to as a voluntary code. However, we are waiting Govt guidance on the adoption of the EU Late Payments Directive, which has to be implemented by all member states must implement by 16 March 2013. The Govt are expected to provide an updte this month on how it will be implemented – which will have a bearing on our contractual T&Cs – so we will try to cover this all in the round.
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