Off-licences and Petrol Stations

Sector Payment Analysis: off-licences and petrol stations

This comprehensive review serves to analyse the payment behaviour prevalent within the off-licences and petrol stations sector, based on a sample of 30 UK-based companies. The data reveals a payment landscape that is generally stable yet punctuated by notable variability. The central tendency of the dataset indicates a mean average payment time of 35.1 days. However, whilst the average suggests terms extending slightly beyond a month, the median payment time stands firmly at 30 days. This discrepancy suggests that the sector’s performance is predominantly anchored around standard commercial terms, but the average is being pulled upward by a minority of slower payers. The standard deviation of 12.6 days further highlights this volatility; suppliers cannot merely rely on the average but must be prepared for a two-week swing in either direction depending on the specific debtor.

When we organise the data by payment speed, distinct tiers of performance emerge amongst the cohort. A slight majority of the sector, representing 53.3% (16 companies), appear to specialise in prompt financial administration, settling their obligations within the 0–30 day window. This is a positive indicator for cash flow security within the supply chain. Nevertheless, the distribution tail is significant. A combined 43.3% of companies fall into the "Moderate" (31–45 days) and "Slow" (46–60 days) categories. The interquartile range of 15 days—spanning from the 25th percentile at 27 days to the 75th percentile at 42 days—reinforces the view that whilst extreme delays are rare, obtaining payment often requires patience extending into the second month of invoicing.

It is crucial for stakeholders to realise the risks associated with the 26.7% of payments classified as late. Although the sector does not exhibit critical distress—evidenced by the fact that zero companies took longer than 90 days to pay—there remains a concern regarding the 7.6% of invoices settled over 60 days. The slowest payer in the sample took 70 days to settle, a timeframe that does not favour suppliers operating on tight margins or those reliant on swift working capital turnover. Conversely, the fastest payer settled in a mere 16 days. This stark contrast between the 16-day best case and 70-day worst case underlines the necessity for rigorous credit checking before offering unsecured terms in this sector.

Finally, the geographic distribution of the sample is heavily centred around London, Yorkshire and The Humber, and the South East. These regions collectively account for the majority of the analysed entities, potentially skewing the data towards the commercial practices of these economic hubs. In summary, the off-licences and petrol stations sector displays a payment culture that is fundamentally sound, with nearly half of all invoices paid within 30 days. However, credit controllers should remain vigilant. The presence of a "Very Slow" category and the moderate standard deviation indicate that whilst catastrophic default is unlikely, administrative delays are a common characteristic of the sector.