Construction firms in league table of slow payers

Carillion is named in a league table of slow payers that put their suppliers under pressure.

According to the Institute of Credit Management, Carillion takes an average of 80 days to settle bills.

The league tables, to be unveiled at ICM's annual conference today, rate all the UK’s 11,000 public limited companies according to how long they take to settle bills.

Construction is highlighted as a particular problem industry for slow payment, alongside the manufacturing, pharmaceuticals and retail sectors. All feature a large number of small suppliers that depend on a few large companies for work.

The ICM predicted that payment delays would become an increasingly important issue for businesses such as subcontractors as the economy slowed.

Philip King, director of the ICM, which represents 8000 businesses, told the Financial Times: “Payment times are likely to lengthen in difficult times, as companies want to hold on to their cash to boost their profits or are struggling to pay. This will give suppliers an idea of who is prompt and who is not.”

The average payment time for all plcs is 44 days, but some take over a year to settle bills.