Gyms and Spas

Payment Behaviour Analysis: Gyms and spas Sector

As a senior business analyst specialising in UK commercial payment practices, I have conducted a thorough review of the financial interactions within the Gyms and spas sector. Based on a sample of eight companies, the data presents a nuanced picture of a sector that generally adheres to standard commercial terms, yet exhibits significant pockets of volatility. The central tendency of the data indicates a median payment time of 39 days and a mean average of 38.6 days. At face value, this suggests that the Gyms and spas sector operates within a moderate risk profile, hovering just outside the traditional 30-day payment window often stipulated in standard British commercial contracts. However, to truly understand the liquidity risks involved, one must analyse the underlying distribution rather than relying solely on averages.

When we organise the data by payment speed bands, a clear bifurcation in payment culture emerges. Exactly half of the companies analysed settle their invoices within 30 days, demonstrating robust cash flow management and efficient accounts payable processes. A further 37.5% fall into the moderate category of 31-45 days. Consequently, the vast majority of the sector—87.5%—pays within a relatively acceptable 45-day timeframe. It is worth noting the tightness of the interquartile range (IQR), which spans only 11 days (from 30 to 41 days). This clustering suggests that the "centre" of the market is reasonably predictable. Whilst this consistency is encouraging for suppliers seeking steady cash flow, the standard deviation of 18.6 days is disproportionately high compared to the IQR. This statistical anomaly points to the presence of significant unpredictability outside the primary cluster, driven largely by the 12.5% of companies lingering in the 61-90 day "Very Slow" bracket.

Suppliers engaging with this sector must realise that whilst severe delinquency (90+ days) is currently absent from the sample, the risk of "late" payment remains substantial. The data reveals that 34.6% of all invoices are classified as late payments. This is a critical metric; even if a company pays within 38 days (the average), if the agreed terms were 30 days, the payment is technically late, straining the supplier's working capital. The disparity between the fastest payer (21 days) and the slowest payer (84 days) is stark. This 63-day gap indicates that credit control teams cannot apply a "one size fits all" approach to the Gyms and spas sector. Conditions favour those who conduct due diligence on specific trading partners rather than relying on sectoral averages, as the difference between a three-week and a twelve-week payment cycle can be the difference between profit and liquidity crisis for a smaller supplier.

Geographically, the sample spans the South East, Yorkshire and The Humber, the East of England, the West of Scotland, and the West Midlands. There is no evidence to suggest that payment delays are regionally concentrated; rather, they appear to be systemic to specific corporate governance structures within the sector. In summary, the payment behaviour of the Gyms and spas sector is largely stable, but suppliers should remain vigilant. The absence of critical 90+ day failures is positive, but the high incidence of moderately late payments suggests that companies in this sector may prioritise their own working capital retention over prompt settlement. Therefore, stakeholders should organise their credit terms carefully, perhaps negotiating shorter payment windows or requesting upfront deposits where the risk of the 84-day outlier profile is suspected.