Aggregates

Executive Summary: Payment Behaviour in the Aggregates Sector

This report aims to analyse the current payment behaviour observed within the Aggregates sector, drawing upon a comprehensive dataset of 16 distinct corporate entities. The primary objective is to evaluate the financial fluidity and credit risk associated with trading in this specific market. The data indicates a remarkably consistent central tendency; the median payment time stands at 44 days, which is almost virtually identical to the arithmetic mean of 43.6 days. This alignment suggests a normal distribution curve, indicating that the sector is relatively stable and predictable. Whilst high volatility is common in many UK industries, this sector displays a standard deviation of 11.3 days, implying that the vast majority of firms adhere to a well-established operational rhythm, rarely deviating significantly from the six-week settlement mark.

A detailed examination of the distribution reveals that companies in this sector do not specialise in rapid settlement. Only two companies, representing a mere 12.5% of the sample, were categorised as 'Fast' payers (settling within 0-30 days), with the fastest recorded payer taking 26 days. Instead, the data demonstrates a clear favour for mid-term settlement periods. The bulk of the sample—81.3%—falls into the 'Moderate' (31-45 days) and 'Slow' (46-60 days) categories. Consequently, suppliers interacting with the Aggregates sector must organise their cash flow expectations around a 45-day cycle. The interquartile range of 18 days further supports this, showing that the middle 50% of companies pay between 35 and 53 days. Amongst the cohort, there is very little evidence of immediate liquidity, yet equally, there is a distinct absence of extreme delinquency.

It is crucial to realise that whilst the sector is slow, it does not appear to be in critical distress. The analysis identifies zero companies in the 'Critical' category (90+ days) and zero outliers with payment terms exceeding 90 days. The slowest payer in the group settled at 71 days. However, the 'Performance Breakdown' indicates that late payments account for 17.7% of activity, and nearly 20% of payments stretch beyond the 60-day threshold. This suggests that while total default is unlikely, administrative delays are commonplace. Geographically, the sample is spread across the UK with a slight concentration in the East Midlands (4 companies), though the sample size is too small to definitively claim regional superiority in payment culture.

In conclusion, the Aggregates sector presents a profile of moderate delays rather than high risk. The centre of the data clearly points to a credit culture that stretches standard 30-day terms into 45 or 50 days. Businesses trading with these entities should not anticipate early settlement; however, the lack of extreme outliers suggests that the risk of bad debt is managed. Stakeholders must analyse their own working capital requirements to ensure they can sustain the average 44-day gap between invoicing and revenue realisation typical of this industry.