Security and Surveillance

Analytical Summary of Payment Behaviour in the Security and surveillance Sector

This report sets out to analyse the commercial payment behaviour within the Security and surveillance sector, drawing upon a representative dataset of 58 companies. The data reveals a generally favourable payment culture, characterised by a central tendency that suggests efficient working capital management across the industry. The average payment time stands at 33.9 days, which aligns closely with the median of 32 days. This proximity between the mean and median is significant, as it suggests the data is not heavily skewed by extreme outliers, presenting a realistic picture of standard industry practice. Whilst the sector demonstrates stability, stakeholders should note the standard deviation of 11.8 days, indicating a moderate degree of variance in how individual organisations manage their accounts payable processes.

A deeper examination of the distribution highlights a strong inclination towards prompt settlement amongst the sample group. Specifically, nearly half of the companies (48.3%) fall into the 'Fast' category, settling their obligations within 30 days. When combined with the 'Moderate' payers (31-45 days), who account for 36.2% of the sample, it becomes evident that the vast majority of the sector operates with a payment horizon of under six weeks. The interquartile range of 17 days further reinforces this consistency, as the middle 50% of companies pay between 26 and 43 days. Consequently, suppliers dealing with this sector can generally organise their cash flow projections with a higher degree of confidence than in more volatile industries, given that 75% of the market settles accounts within 43 days.

However, credit controllers and suppliers must realise that average speed does not always equate to adherence to specific contract terms. The performance breakdown indicates that 24.2% of payments are classified as late. Whilst this figure warrants attention, the severity of these delays is mitigated by the complete absence of 'Critical' non-payers; notably, zero companies fell into the dangerous 90+ day category. The spectrum of performance ranges from a highly efficient 11 days to a slowest payer at 65 days, with only 5.2% of companies lingering in the 61-90 day bracket. The presence of five top performers settling in under 20 days suggests that optimised financial workflows are achievable within the sector, providing a clear benchmark for those currently lagging in the slower brackets.

Geographically, the activity is heavily London-centric, with 31 companies located in the capital and a further 13 in the South East. As these two regions comprise the bulk of the sample, the observed payment behaviour is likely influenced by the economic liquidity and business practices prevalent in the south of the UK. In conclusion, the Security and surveillance sector displays a robust financial profile with a low risk of severe delinquency. Suppliers should expect payment terms to be honoured reasonably well, whilst remaining vigilant regarding the minority of transactions that extend beyond the 60-day threshold, which currently affects only 8.6% of the total volume.