Fish

Sector Payment Analysis: Fish

This report seeks to analyse the payment behaviour within the Fish sector, drawing upon a dataset of 43 companies to establish current financial norms and credit risk profiles. The data indicates a remarkably stable payment culture, characterised by a strong alignment between the average payment time (35.2 days) and the median (35 days). This convergence suggests a symmetrical distribution of payment habits, where the arithmetic mean is not skewed by extreme outliers. Indeed, with a standard deviation of just 11.1 days, the sector displays consistent behaviour, allowing suppliers to forecast cash flow with a relatively high degree of confidence. The fastest payer settled accounts in 14 days, whilst the slowest averaged 57 days, indicating that no companies in this sample are currently exhibiting critical financial distress defined by average delays exceeding 90 days.

When we organise the companies into performance bands, a clear picture emerges regarding the standard terms of trade. Approximately 39.5 per cent of the companies specialise in prompt settlement, paying within the 0-30 day window. However, the centre of gravity for this sector appears to shift slightly beyond the standard month-end; a further 37.2 per cent fall into the moderate 31-45 day bracket. Consequently, nearly 77 per cent of the analysed entities clear their debts within a month and a half. The interquartile range further supports this view, revealing that the middle 50 per cent of companies pay between 26 and 45 days. Suppliers should realise that whilst terms may nominally be 30 days, administrative processing often extends the actual receipt of funds to the 35-day mark.

Despite the favourable company-level averages, a deeper review of invoice performance reveals underlying friction. Whilst no individual company averages more than 60 days to pay, the transaction-level data shows that 12.6 per cent of specific invoices are paid over 60 days, and 26.6 per cent of all payments are classified as 'late' against agreed terms. This discrepancy implies that whilst the overall intent to pay is sound, administrative bottlenecks or cash flow management strategies occasionally delay specific payments. It is vital to distinguish between a company’s average behaviour and specific invoice outcomes; a firm may generally pay in 45 days but still leave a minority of invoices unpaid for two months.

In summary, the Fish sector presents a low-to-moderate credit risk profile. The absence of any companies in the 61-90 day or 90+ day critical categories is a positive signal for trade creditors. With the data showing a geographic spread across the East of England, the North West, and the West Midlands, these findings appear to represent a national trend rather than a regional anomaly. For credit controllers dealing with this sector, the focus should not be on fear of bad debt, but rather on managing the 31-45 day delay that has become the operational norm. By anticipating a 35-day settlement cycle, businesses can better organise their working capital requirements.