Pubs

Sector Payment Behaviour Analysis: pubs

Based on a robust dataset comprising 182 companies within the pubs sector, we can analyse the current financial landscape to reveal a distinct dichotomy between standard operating procedures and extreme outlier activity. The central tendency metrics present a fascinating divergence; whilst the average payment time stands at 52.9 days, the median is significantly lower at 38 days. This discrepancy serves as a critical indicator that the arithmetic mean is heavily skewed by a minority of poor performers. Indeed, the standard deviation of 123.9 days is exceptionally high, suggesting that payment consistency is volatile across the broader spectrum. However, a closer look at the centre of the distribution allows us to realise that for the majority of entities, payment terms are being adhered to reasonably well, with the 50th percentile settling the debt within roughly five weeks.

When we organise the data by speed distribution, it becomes evident that the sector displays a favourable inclination towards prompt settlement. A substantial 74.2% of the analysed companies pay within 45 days (combining the 'Fast' and 'Moderate' categories), and notably, nearly half of the sector (48.3%) settles invoices within the standard 30-day window. The interquartile range of 20 days—spanning from 26 to 46 days—further reinforces the view that the core operational behaviour of this sector is relatively tight and predictable. Amongst the top performers, 30 companies demonstrate exceptional liquidity management by settling accounts in fewer than 20 days, with the fastest recorded payer clearing debts in a mere 6 days.

Conversely, one must not overlook the risks associated with the tail end of the distribution. Whilst the core is stable, the sector suffers from severe outliers that distort the overall picture. Approximately 12.3% of companies take over 60 days to pay, with a critical 2.7% extending beyond 90 days. The presence of a staggeringly slow payer taking 1,000 days contributes significantly to the high standard deviation and average payment time. Furthermore, with a late payment rate of 28.2%, suppliers specialising in servicing this sector must maintain robust credit control processes. The data suggests that whilst a contract might stipulate standard terms, over a quarter of invoices are likely to drift beyond the agreed date, necessitating vigilant cash flow monitoring.

Geographically, the dataset is heavily weighted towards the South, with London and the South East accounting for 93 of the 182 companies analysed (51%). This concentration suggests that the payment behaviour trends observed are largely driven by commercial practices within these major economic hubs. In summary, the pubs sector presents a generally healthy payment profile for the median business, characterised by settlements within 38 days. However, the extreme variance caused by the 'Critical' bracket (>90 days) indicates that whilst the majority act responsibly, the minority who do not pose a significant credit risk. Suppliers are advised to analyse individual credit histories rigorously rather than relying solely on sector averages.