News Agents

Payment Behaviour Analysis: news agents Sector

This report seeks to analyse the current payment landscape within the news agents sector, drawing upon a dataset of 30 representative companies. A review of the central tendency metrics reveals a sector that largely adheres to standard commercial terms, though with notable variances in settlement speeds. The median payment time stands at a robust 30 days, serving as the industry standard centre point. However, the average (mean) payment time is slightly elevated at 35.1 days. This discrepancy between the median and the mean indicates a positive skew, suggesting that whilst the typical company settles invoices within a standard month, a minority of slower payers are dragging the average upward. The standard deviation of 12.6 days further underscores this variability, indicating that suppliers must be prepared for a two-week fluctuation in expected cash flow when dealing with different entities within this vertical.

When we organise the data by distribution quartiles, a clearer picture of the sector’s credit culture emerges. The sector displays a strong inclination towards prompt settlement, with 53.3% of the analysed companies classified as 'Fast' payers (0–30 days). The interquartile range (IQR) of 15 days—spanning from the 25th percentile at 27 days to the 75th percentile at 42 days—demonstrates that the core of the sector operates within a predictable window. Nevertheless, suppliers should realise that nearly half of the sector (46.7%) falls outside the 'Fast' category. Specifically, the 'Moderate' (31–45 days) and 'Slow' (46–60 days) categories combined account for 43.3% of the sample. This suggests that whilst prompt payment is the norm, extending terms to 45 or 60 days is a common practice amongst a significant portion of these businesses.

A critical examination of performance breakdown and risk factors highlights specific areas of concern. Whilst the sector does not exhibit critical failure points—evidenced by zero companies falling into the 90+ days category—the data reveals that 26.7% of payments are classified as 'late'. This is a vital metric for credit controllers to monitor. The presence of a 'Very Slow' payer (61–90 days), representing 3.3% of the sample, alongside the fact that 7.6% of payments stretch beyond 60 days, indicates that credit risk is present, albeit manageable. The range between the fastest payer (16 days) and the slowest payer (70 days) is significant, requiring suppliers to assess individual client creditworthiness rather than relying solely on sector averages. Companies that specialise in tight cash flow management must be wary of the 20% of firms sitting in the 46–60 day bracket.

Geographically, the sample reflects a concentration of activity in major commercial hubs, with London (7 companies) and Yorkshire and The Humber (5 companies) featuring heavily, followed closely by the South East. In conclusion, the news agents sector demonstrates generally healthy payment behaviour, heavily favouring 30-day terms. However, the existence of a 12.6-day standard deviation and a persistent tail of late payers suggests that vendors should maintain rigorous credit control procedures. Whilst the risk of critical default appears low, the data indicates that patience is occasionally required to realise revenue from the slower quartile of this industry.